BIO-key International Enters into Warrant Exercise Agreement and Streeterville Exchange Agreements

BIO-key International, Inc. (NASDAQ:BKYI) recently disclosed in an 8-K filing with the Securities and Exchange Commission that it has entered into significant financial agreements. On January 15, 2025, the company inked a warrant exercise agreement with an existing institutional investor. This agreement entails the exercise of outstanding warrants to buy 2,061,112 common shares at an exercise price of $1.85 per share, originally issued in September 2024. In return, the investor received new unregistered Series A and Series B warrants to purchase a total of 3,091,668 shares at an exercise price of $2.15 per share.

The Company also agreed to file a resale registration statement with the SEC for the new warrants’ shares. The gross proceeds from this agreement are anticipated to be around $3.8 million, before deducting placement agent fees and offering expenses, and the closing date is slated for January 16, 2025. BIO-key intends to utilize the net proceeds for general corporate purposes, including working capital and repayment of a portion of the outstanding secured note.

Maxim Group LLC served as the exclusive placement agent for BIO-key International, and the Company will compensate Maxim with a cash fee equal to 6.0% of the gross proceeds from the warrant exercise agreement.

Additionally, on the same date, the Company closed two Streeterville Exchange Agreements with Streeterville Capital, LLC. These agreements involved the partitioning of an outstanding secured promissory note into two new promissory notes and an exchange of the partitioned notes for 489,635 shares of the Company’s common stock. This resulted in a reduction of the outstanding principal to approximately $738,400.

Both the warrant exercise and the exchange agreements were executed in compliance with appropriate regulations and aim to bolster the Company’s financial position for future operations.

The full details of the agreements disclosed by BIO-key International are available in the Form 8-K filing submitted to the SEC. Investors and stakeholders are encouraged to review the document for comprehensive insights into the recent financial developments at the Company.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read BIO-key International’s 8K filing here.

BIO-key International Company Profile

BIO-key International, Inc develops and markets fingerprint identification biometric technology and software solutions, and enterprise-ready identity access management solutions for commercial, government, and education customers in the United States and internationally. The company offers BIO-key PortalGuard and PortalGuard IDaaS solutions, a customer-controlled and neutral-by-design cloud-based identity platform that allows customers to integrate with any cloud or on-premises SaaS application, as well as windows device authentication through IAM platform.