BKYI - BIO-key secures $2.2M in funding via promissory note financing
- BIO-key International ( NASDAQ: BKYI ) notifies the sale of a $2.2M, six-month 10% Secured Promissory Note to AJB Capital Investments LLC.
- Proceeds from the financing will be used for general working capital purposes.
- The note is issued at an original issue discount of 9% and to be extended by the company for an additional six months at a 12% annual interest rate.
- Regarding the note, BKYI issued to the investor 700,000 shares of common stock in payment of a commitment fee and a five-year warrant to purchase 200,000 shares of common stock at an exercise price of $3.00/share.
- In the event the note is paid in full within six months, BIO-key will repurchase 350,000 of the shares initially issued to the investor for aggregate payment of $1.00.
- The conversion of the note are capped at 1,684,576, or 19.9% of the company’s issued and outstanding shares.
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BIO-key secures $2.2M in funding via promissory note financing