Financing expected to meet projected working capital requirements through 2023
Ipsidy Inc. dba authID.ai, a leading provider of secure, mobile, biometric identity authentication, announced that it has closed on total financing of approximately $22,500,000 before fees, commissions and expenses. The financing raised:
| ● | approximately $9,200,000 through the issuance of senior secured convertible promissory notes (the “Notes”) to certain accredited investors (collectively, the “Buyers”), most of whom have previously invested in authID.ai, including several members of the authID.ai Board and management team. The Notes are convertible into common shares of authID.ai at the option of the Buyers at any time, at a conversion price of $3.70; | |
| ● | approximately $3,000,000 through the sale of shares of common stock to a new investor at a price of $3.03 per share as well as approximately $300,000 of shares of common stock sold to certain members of the authID.ai management team at a price of $3.70 per share (the “Other Shares”); and | |
| ● | $10,000,000 in borrowing capacity under an unsecured standby line of credit facility (the “Credit Facility”) with an existing major investor. |
With these additional finances in place, based on the budget recently approved by the Board of Directors, Management believes the Company will have positive cash flow on a current basis entering 2024.
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“I am pleased that we completed this financing round of $22.5 million that will support our projected working capital needs through 2023,” said Tom Thimot, CEO of authID.ai. “I want to thank our new and existing investors for this financing, which represents a vote of confidence for our future, and provides us the resources to continue offering innovative technology that helps build a safer digital landscape for all,” concluded Thimot.
Additional details of the financing round can be found in authID.ai’s Form 8-K filed today.
The Notes, the Other Shares, the common stock underlying the Notes and the other shares issued and issuable in connection with the financing round have not been registered under the Securities Act of 1933 or any state securities laws and, until so registered, may not be offered or sold in the United States or any state absent registration or an applicable exemption from registration requirements.
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This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or other jurisdiction.
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