By Sheri Kasprzak
Atlanta, March 2 - Veridicom International Inc. said will raise $5.1 million in a private placement of convertible secured notes.
The company has received $1.7 million in the first closing of the deal.
The notes mature in 36 months, bear interest at 10% annually and are convertible into common shares at the lesser of $0.635 or 50% multiplied by the average of the average daily prices of the company's shares five days before conversion.
The interest rate resets to 0% in any month in which the company's stock is greater than 125% of the initial market price, or 100% of the volume weighted average of the common shares five days before closing.
The investors also received warrants for 10.2 million shares. Some of the warrants are series A warrants exercisable at $3.00 each and some of the warrants are series B warrants exercisable at $5.00 each. Both warrants expire in five years.
The placement agent in the deal was Joseph Stevens & Co. Inc.
Based in Seattle, Veridicom is a hardware and software company that focuses on public key infrastructure, secure token-based technology and fingerprint biometrics to authenticate and manage personal identities.
| Issuer: | Veridicom International Inc.
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| Issue: | Convertible secured notes
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| Amount: | $1.7 million (of $5.1 million)
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| Maturity: | 36 months
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| Coupon: | 10%
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| Price: | Par
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| Yield: | 10%
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| Conversion price: | The lesser of $0.635 or 50% multiplied by the average of the average daily prices of the company's shares five days before conversion
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| Warrants: | For 10.2 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | Series A: $3.00; series B: $5.00
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| Placement agent: | Joseph Stevens & Co. Inc.
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| Settlement date: | Feb. 25
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| Stock price: | $1.70 at close Feb. 25
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