Bioscrypt funding an insurance policy
TORONTO - A $5 million (Canadian) round of funding is expected to provide biometric technology company Bioscrypt with a cushion should its expectation of becoming cash flow positive by years-end not pan out.
The funding was from J.L Albright III Venture Fund, a fund that invests in high-tech companies and businesses with the potential for high growth. The transaction came only a few weeks prior to Bioscrypt winning back-to-back contracts with the New York Police Department and City of Los Angeles, announcements that have proved positive for the company financially so far.
The two contract announcements sent its stock soaring as high as 35 percent on July 23. By the end of business, the stock closed at $1.10 a share, or a 29 percent increase.
Bruce MacInnis, chief financial officer of Bioscrypt, said company officials are optimistic the business will be in the black in only a matter of months. Ã¢â‚¬Å“WeÃ¢â‚¬â„¢re very focused on becoming profitable in the near term,Ã¢â‚¬Â he said.
For Bioscrypt, that outlook is welcome news. Late last year the company trimmed an unspecified number of employees and its president, Pierre Donaldson, took a 10 percent salary cut. The companyÃ¢â‚¬â„¢s directors also forfeited fees.