Attached files
Exhibit
99.1
ImageWare®
Systems Closes $8.9 Million Preferred
Stock
Private Placement and Approximately $6.9 Million
Debt Conversion into Equity
San
Diego, CA, September 12, 2018 – ImageWare® Systems, Inc.
(OTCQB:
IWSY), a leader in mobile and cloud-based, multi-factor,
multi-modal biometric identity management solutions, today
announced that it has completed a private placement of $8.9 million
of the Company’s newly designated Series C Convertible
Preferred Stock, with four new institutional investors. Shares of
Series C Preferred will accrue dividends at a rate of 8% per annum
if paid in cash or 10% per annum if paid in shares of the
Company’s common stock, and are convertible into shares of
the Company’s common stock at a conversion price of $1.00 per
share.
Northland
Capital Markets acted as the exclusive placement agent for the
Series C Financing. Northland
Capital Markets is the trade name for certain capital markets and
investment banking services of Northland Securities, Inc., member
FINRA/SIPC.
Concurrently
with the Series C Financing, holders of approximately $6.9 million
of unsecured debt converted their debt, which amount includes all
accrued and unpaid interest thereon, into 6,897 shares of the
Company’s existing Series A Convertible Preferred Stock. The
Company’s Board of Directors also declared a dividend for the
holders of the Series A Preferred, pursuant to which each holder of
Series A Preferred will receive a warrant to purchase approximately
40 shares of the Company’s common stock for every share of
Series A Preferred held, which warrant is only exercisable
concurrently with conversion of outstanding shares of Series A
Preferred.
Jim Miller, Chairman and CEO of ImageWare stated,
“We are extremely
pleased with the financial commitment that our new investors and
our existing debt holders have shown in support of the
Company’s efforts through this financing and debt conversion.
The proceeds from the Series C Financing will enable us to expand
our sales and marketing efforts.”
About ImageWare®
Systems, Inc.
ImageWare
Systems, Inc. is a leading developer of mobile and cloud-based
identity management solutions, providing patented biometric
authentication solutions for the enterprise. Biometric technology
uses unique physical characteristics to authenticate a
person’s identity. The Company delivers next-generation
biometrics as an interactive and scalable cloud-based solution.
ImageWare brings together cloud and mobile technology to offer
multi-factor authentication for smartphone users, for the
enterprise, and across industries.
ImageWare’s
products support multi-factor, multi-modal biometric authentication
including, but not limited to, any individual use or combination of
face, voice, fingerprint, iris, palm, and more. All the biometrics
can be combined with or used as replacements for authentication and
access control tools, including tokens, digital certificates,
passwords, and PINS, to provide the ultimate level of assurance,
accountability, and ease of use for corporate networks, web
applications, mobile devices, and PC desktop
environments.
ImageWare
is headquartered in San Diego, California, with offices in
Portland, Oregon; Ottawa, Ontario; and Mexico City, Mexico. To
learn more about ImageWare, visit https://iwsinc.com/
and follow us
on Twitter,
LinkedIn,
YouTube,
and Facebook.
Forward-Looking Statements
Any statements contained in this document that are not historical
facts are forward-looking statements as defined in the U.S. Private
Securities Litigation Reform Act of 1995. Words such as
“anticipate,” “believe,”
“estimate,” “expect,”
“forecast,” “intend,” “may,”
“plan,” “project,” “predict,”
“if,” “should” and “will” and
similar expressions as they relate to ImageWare Systems, Inc. are
intended to identify such forward-looking statements. ImageWare may
from time to time update publicly announced projections, but
it is not obligated to do so. Any projections of future results of
operations should not be construed in any manner as a guarantee
that such results will in fact occur. These projections are subject
to change and could differ materially from final reported results.
For a discussion of such risks and uncertainties, see “Risk
Factors” in ImageWare’s Annual Report on Form 10-K for
the fiscal year ended December 31, 2017 and its other reports filed
with the Securities and Exchange Commission under the Securities
Exchange Act of 1934, as amended. Readers are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the dates on which they are made.
Investor Relations Contact
Harvey Bibicoff, CEO
Bibicoff + MacInnis, Inc.
818.379.8500 harvey@bibimac.com