Investors also receive 10 million warrants; MDB Capital was the agent
By Devika Patel
Knoxville, Tenn., Dec. 21 - ImageWare Systems, Inc. said it settled a $10 million private placement of stock. MDB Capital Group LLC was the agent.
The company sold 20 million common shares at $0.50 apiece, a 9.09% discount to the Dec. 20 closing share price of $0.55.
Investors also received 10 million warrants; the five-year warrants are each exercisable at $0.50, also a 9.09% discount to the Dec. 20 closing share price.
Proceeds will be used to market the company's services and expand its intellectual property position, as well as for general corporate purposes.
In connection with this offering, the company's series C and series D preferred stock and its remaining convertible debt were automatically converted into common stock at $0.50 per share.
"We believe this financing gives us the working capital to successfully execute the company's long-term business plan," chairman and chief executive officer Jim Miller said in a press release. "For the first time in many years, ImageWare is debt-free and fully funded, allowing us to aggressively and competitively bid for new business without the lingering cloud of how our balance sheet appears to our potential customers. We expect this difference to be meaningful and help propel our growth."
San Diego-based ImageWare provides software-based identity management solutions.
| Issuer: | ImageWare Systems, Inc.
|
| Issue: | Common stock
|
| Amount: | $10 million
|
| Shares: | 20 million
|
| Price: | $0.50
|
| Warrants: | 10 million
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.50
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| Agent: | MDB Capital Group LLC
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| Settlement date: | Dec. 21
|
| Stock symbol: | Pink Sheets: IWSY
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| Stock price: | $0.55 at close Dec. 20
|
| Market capitalization: | $13.48 million
|
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