DELRAY BEACH, Fla., Nov. 5, 2014 (GLOBE NEWSWIRE) -- VeriTeQ Corporation (OTC Markets:VTEQ) ("VeriTeQ" or the "Company"), a provider of implantable medical device identification and radiation dose measurement technologies, announced today that it has entered into a securities purchase agreement (the "SPA") and convertible note with Magna Equities II, LLC ("Magna"). Under the SPA, the Company expects to issue additional promissory notes on substantially identical terms throughout November and December for total net proceeds of up to $450,000.
In conjunction with the financing, Magna has purchased from Hudson Bay Master Fund Ltd. two promissory notes issued by the Company in November 2013 and May 2014, with a current principal amount totaling approximately $352,000. Under the terms of the financing, the maturity date of the notes due November 13, 2014, has been extended to July 13, 2015. Also in connection with entering into the SPA with Magna, the Company entered into agreements with its Chief Executive Officer, Scott R. Silverman, to convert $1.4 million owed to him, and with its President, Randolph Geissler, to convert $441,000 owed to him, into a total of 1,841 shares of the Company's newly designated Series D Convertible Preferred Stock, which will vest/convert on January 1, 2017, or upon a change of control.
"We believe this new financing agreement with Magna, with whom we have worked for several months, will result in a positive outcome for the Company and our stockholders," said Silverman. "We continue to have confidence in in the opportunities for our business, and look forward to cementing relationships with strong partners for the continued expansion of our technology around the world."
Additional terms of the financing and the conversion of liabilities owed to Messrs. Silverman and Geissler are discussed in the Company's Form 8-K filed with the SEC on November 5, 2014.
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