PositiveID Enters Into Strategic Financing for $2.4 Million
PositiveID Corporation
1 minute ago
GlobeNewswire
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Fixed-Price Financing Struck at a Premium to Market
Proceeds to Be Used to Develop Field-Testable Units of PositiveID’s Firefly Dx Pathogen Detection System for Point-Of-Need Diagnostics
DELRAY BEACH, Fla., Aug. 17, 2015 (GLOBE NEWSWIRE) -- PositiveID Corporation (“PositiveID” or “Company”) (PSID), a developer of biological detection and diagnostics solutions, announced today it has entered into definitive agreements with an institutional investor (“Investor”) for an aggregate purchase price of $2,400,000. PositiveID will use the proceeds to continue the development and testing of its Firefly Dx PCR (polymerase chain reaction) prototype pathogen detection system (“prototype system”) with the goal of producing field-testable units, and for general working capital.
The Company will issue a series of 4% original issue discount senior secured convertible promissory notes to the Investor, with a total purchase price of $2,400,000, funded over the next six months in a series of six notes, which accrue interest at 12% per annum, with the first year’s interest guaranteed. The Investor has the right to convert the notes into shares of the Company's common stock at a fixed conversion price of $0.028, subject to certain adjustments, as defined in the agreements. The fixed pricing was set at a 12% premium to the closing bid price on August 11, 2015. No warrants were issued in connection with the financing, and the Investor has agreed to a “no shorting” provision.
William J. Caragol, Chairman and CEO of PositiveID, said, “This funding is critically important for the Company as we continue to advance the development of Firefly Dx. We have already proven our ability to test numerous assays on our Firefly Dx prototype system and deliver lab-quality pathogen detection in under 20 minutes. With this funding, we intend to build upon the significant progress we have made and focus on the next phase of our development with the goal of producing a field-testable unit for the large point-of-need detection market.”
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PositiveID’s Firefly Dx is designed to provide real-time, accurate diagnostic results in a handheld device, thereby leading to treatment scenarios at the point-of-need that are not possible with existing systems, which require lab-based equipment, highly trained personnel, and can take hours or even days to provide results. Firefly’s applications include point-of-need, lab-quality, detection of pathogenic organisms; agricultural and food screening in both domestic sectors and developing countries; and detection of biological agents associated with weapons of mass destruction.
The Company provided further information regarding this financing in a Form 8-K filed with the SEC on August 14, 2015.
