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BIO-key International, Inc. Message Board

  • johnboy911 johnboy911 Mar 5, 2013 2:17 PM Flag

    Curious

    $402,693.50 in stock, $497,306.50 in note. That’s an odd ratio, why not $450K each?

    I think IDCC went out of their way to avoid 5% ownership. I guess they will not be buying more equity soon.

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    • Pursuant to the InterDigital SPA, the Company issued 4,026,935 shares of its common stock at a purchase price $0.10 per share, for an aggregate purchase price of $402,693.50.

      the InterDigital Note was issued in a principal amount of $497,306.50 and bears interest at a rate of 7% per annum, with a default rate of 9% per annum while a nonpayment default is continuing. The InterDigital Note is secured by a security interest in all of the tangible and intangible assets of the Company, and is subject to acceleration upon an event of default. Under the InterDigital NPA, the Company agreed to comply with certain financial covenants, including a leverage ratio covenant and an annual limit on capital expenditures other than in the ordinary course of business. A portion of the proceeds from the sale of the InterDigital Note were used to repay the Colatosti Note (as defined in the Company's Annual Report on Form 10-K filed with the Commission on April 16, 2012) in full, with the remaining proceeds to be used for other general corporate purposes.

      Pursuant to the Private Investor SPA, the Company issued 5,000,000 shares of its common stock at a purchase price $0.10 per share, for an aggregate purchase price of $500,000.

      Sentiment: Strong Sell

 
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