Companies also enter into intellectual property, asset purchase deals
By Angela McDaniels
Tacoma, Wash., Jan. 7 - LaserLock Technologies, Inc. sold $1 million of common stock to VerifyMe, Inc. under an investment agreement on Dec. 31.
VerifyMe purchased 22,222,222 shares for $0.045 each, which is a 50% premium over the company's $0.03 closing share price on Dec. 30.
The investor also received a warrant for 22,222,222 shares.
The company will use the proceeds to pay normal business expenses.
LaserLock and VerifyMe also entered into some intellectual property and technology transfer and services agreements. Under these agreements LaserLock received $1 million, and VerifyMe received an additional warrant for 22,222,222 shares.
Finally, the companies entered into a patent and technology license agreement and an asset purchase agreement. Under these agreements, LaserLock paid $200,000 to VerifyMe in the form of 4,444,444 shares and warrants for 4,444,444 shares.
All of the warrants have an exercise price of $0.10, which is a 233% premium over the Dec. 30 closing share price.
In total, LaserLock received $2 million, and VerifyMe received 26,666,666 shares and warrants to purchase 48,888,888 shares.
LaserLock must use a portion of the proceeds received under the technology and services agreement to hire a full-time chief technology officer or a chief information officer and two full-time business developers. The agreement also requires LaserLock to execute an agreement with Zaah Technologies, Inc. to secure technical hosting for technology and software supported by certain patents licensed by LaserLock from VerifyMe.
LaserLock is a development-stage company based in Bala Cynwyd, Pa., that engages in the provision of product and document authentication and security solutions.
| Issuer: | LaserLock Technologies, Inc.
|
| Issue: | Common stock
|
| Amount: | $1 million
|
| Shares: | 22,222,222
|
| Price: | $0.045
|
| Warrant: | For 22,222,222 shares
|
| Warrant strike price: | $0.10
|
| Investor: | VerifyMe, Inc.
|
| Agent: | Non-brokered
|
| Settlement date: | Dec. 31
|
| Stock symbol: | OTCBB: LLTI
|
| Stock price: | $0.03 at close Dec. 30
|
| Market capitalization: | $4.28 million
|
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