BIO-key raises $2.55M in private placement of Senior Secured Convertible Note
BIO-key International announced the sale of a $3.06M Senior Secured Convertible Note to Lind Global Macro Fund, LP. At closing, $2.55M was funded, with the proceeds to be used for general working capital purposes, including repayment of outstanding indebtedness. The Note is secured by a first priority lien on substantially all of BIO-key's assets and properties and is convertible at the option of the Investor into shares of BIO-key common stock at a fixed conversion price of $1.50 per share. The principal amount of the Note is due and payable as follows: $918,000 is due 180 days after funding; $1,071,000 is due 270 days after funding, and the balance is due 12 months after the date of funding. BIO-key has the right to prepay the Note in full at any time without penalty, in which case the Investor will have the option of converting 25% of the outstanding principal amount of the Note into BIO-key shares at $1.50 per share. Additionally, the Investor was issued a five-year warrant to purchase 2,000,000 shares of common stock at a fixed exercise price of $1.50 per share. The Warrant is immediately exercisable.