ImageWare seeks private placement to raise capital

SSN Staff  - 
Thursday, November 20, 2003

November 20, 2003

SAN DIEGO - ImageWare Systems Inc. expects to raise $7 million through a private placement of common stock and warrants to purchase common stock, the company announced last week.

The company has entered into placement agreements with institutional investors, which comprise both new and existing shareholders, and expects the sale to be close by Nov. 24.

The transaction will involve the sale of units consisting of one share of common stock and a warrant to purchase 0.20 units of common stock. Each unit will be priced at $1.72 and the warrants will have a five-year exercise price of $2.58 per share. Shares of the company’s stock closed at $2.24 on Tuesday.

Through the sale, ImageWare will issue approximately 4 million new shares of common stock and warrants to purchase up to 840,000 shares of common stock.

According to a statement issued by the company, approximately $4.5 million of the proceeds will be used to retire ImageWare’s outstanding 12.5 percent convertible secured debt, with the remainder to be used for working capital.