BIO-key International, a provider of finger-based biometric identification and wireless public safety solutions, announced the closing of the purchase of Aether's Mobile Government Division. As previously announced the purchase price was $10 million in cash and subject to certain post closing adjustments.
The company also announced that it completed a $10 million private placement of convertible debentures and warrants with institutional and accredited investors. The conversion price of the bonds is $1.35. Investors received warrants to purchase up to approximately 3 million shares of common stock at $1.55 per share.
The funds will be used to help finance the transaction and provide for working capital to implement the company's business plan of providing highly accurate, fast and scalable one-to-many fingerprint biometric identification solutions and mobile wireless systems that enable security officials access to law enforcement databases to validate identities and obtain suspect information.
Mike DePasquale, BIO-key CEO, said, "With the addition of the AMG companies including Cerulean and Sunpro, BIO-key has become the largest provider of mobile, wireless information and identity management solutions in the public safety market. Combined with BIO-key's biometric and wireless technologies, we are positioned as the leading force in an emerging largely untapped market that we value at more than $5 billion. With a large 2500 customer base and a network of strategic partners, we will have the market presence and reach to accelerate biometric deployments and expand the market for providing secure wireless information to the estimated 5 million first responders across nearly 50,000 agencies engaged in homeland security."