BIO-key is looking to raise some capital with a new share sale.
The company has announced an underwritten offering of 1,200,000 shares of common stock, together with “warrants to purchase up to an aggregate of 900,000 shares” of common stock at a price of $1.50 per share, according to a statement. The warrants can be used immediately and will expire in five years.
BIO-key also noted in its announcement that it had “granted the underwriter an over-allotment option, exercisable for a period of 45 days, to purchase up to 180,000 additional shares of its common stock and/or 135,000 warrants.”
The share offering comes on the heels of a corporate update in which BIO-key outlined somewhat disappointing revenues for its second quarter, which it attributed to timing for some of its bigger deals. Nevertheless, the company’s leadership indicated that its focus will, as always, remain fixed on end-year results, which offer a more reliable indication of its overall performance.
In the meantime, a capital influx will help to sustain “general corporate purposes, including working capital.” BIO-key says it expects gross proceeds of its share offering to come in at about $1.8 million, and that the offer will most likely close on August 24th, or close to that date.
(Originally posted on FindBiometrics)