“We are extremely pleased with the financial commitment that our new investors and our existing debt holders have shown in support of the Company’s efforts through this financing and debt conversion. The proceeds from the Series C Financing will enable us to expand our sales and marketing efforts.” – Jim Miller, CEO, ImageWare
ImageWare has secured some new funding through a private placement and a debt to equity swap.
The placement was conducted by Northland Capital Markets and concerned ImageWare’s Series C Convertible Preferred Stock. Four new institutional investors brought the company $8.9 million through the placement.
Meanwhile, lenders converted about $6.9 million in debt owed by ImageWare into 6,897 shares of Series A Convertible Preferred Stock. At the same time, ImageWare’s board of directors declared a dividend for Series A Preferred stockholders, allowing each to receive a warrant to purchase about 40 shares of common stock for each Series A Preferred share, “which warrant is only exercisable concurrently with conversion of outstanding shares of Series A Preferred,” according to a statement from the multimodal biometric authentication specialist.
Commenting on the maneuvers, ImageWare CEO Jim Miller said his team is “extremely pleased with the financial commitment that our new investors and our existing debt holders have shown”, adding that the proceeds will allow ImageWare “to expand our sales and marketing efforts.”
News of these developments comes about a month after ImageWare issued a Q2 update showing increased revenues and a lower net loss, year over year.
(Originally posted on FindBiometrics)