TMCnet News
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[March 01, 2004] SAFLINK Corp. Raises $9.2 Million In Private Placement SAFLINK Corporation (NASDAQ: SFLK), a developer, marketer, and integrator of biometric security solutions, announced today that it has raised $9.2 million in a private placement of its common stock. The funds will be used to continue to implement the Company’s overall business strategy of Identity Assurance Management for delivering security solutions which protect sensitive areas of an enterprise through the use of biometric authentication.“This financing is another key milestone in the growth of our Company,” said Glenn Argenbright, President and CEO of SAFLINK. “The proceeds will solidify our balance sheet and allow us to continue the development and marketing of our Identity Assurance Management™ product suite. We believe the closing of this financing will help us deliver on our vision of providing our customers with comprehensive, Doorway-to-Desktop security solutions to protect their computer networks, physical facilities, and intellectual property, as well as increase the efficiency and effectiveness of their manufacturing automation control and time and attendance systems.” Private Placement Details The funds were raised through the sale of 3,080,000 shares of the Company’s common stock to a group of institutional investors, including existing stockholders, at a per share price of $3.00. The placement agent for the financing was Burnham Hill Partners. The per share purchase price represented a discount of approximately 8.5% to the $3.27 closing sale price for the Company’s common stock as reported on the Nasdaq SmallCap Market on February 25, 2004, the trading day prior to the closing of the financing. Investors also received warrants to purchase up to 1,232,000 additional shares of common stock. The warrants have a term of five years and an exercise price of $3.97 per share. Pursuant to the terms of the financing, the Company has agreed to file a registration statement on Form S-3 with the Securities and Exchange Commission covering the resale of the shares of common stock issued in the financing and the shares of common stock underlying the warrants. For additional information, please refer to the Company’s Form 8-K to be filed with the Securities and Exchange Commission, with respect to this transaction. |