IRVING, Texas -- Integrated Security Systems, Inc. (ISSI), a leading manufacturer and provider of homeland security related products, including anti-terrorist and perimeter security technology, announced that it closed on a $3.8 million funding round in a PIPES financing transaction. These funds consisted of $2.3 million in new funding, along with a $1.5 million infusion of previously received capital.
"We are extremely pleased with this new round of funding," said C. A. Rundell, Jr., Chairman and CEO of ISSI. "We are committed to see this Company grow and provide a good return for all of our investors," concluded Rundell.
Under the terms of the financing, the Company entered into a Loan Agreement with accredited investors in the transaction, and issued to the investors Subordinated 10% Convertible Promissory Notes. Each of the notes is due and payable on November 30, 2009 and is convertible into the Company's common stock at the conversion rate of $0.38 per share. The common stock to be issued on conversion of the notes is subject to a Registration Rights Agreement.
Peter Beare, President of ISSI stated, "This round of funding allows us to move aggressively forward with our business planning and will enable us to provide a wider range of products to our valued customers, while taking advantage of new and exciting business opportunities."