ImageWare Announces $11.56M Private Placement, Board Shakeup

ImageWare has announced new financing and two board appointments ahead of its update for the third quarter of 2020.

The funding comes by way of the closing of an $11.56 million private placement of Series D Convertible Preferred Stock. In a statement, ImageWare said the financing was “anchored by funds and accounts managed by Nantahala Capital Management, LLC,” and that it included participation from institutional investors and existing accredited investors. It also entailed changes to certain Preferred stock shares.

“Proceeds from the financing will be used for general corporate and working capital purposes.”

Meanwhile, ImageWare’s Board of Directors now comprises the company’s CEO, Kristin Taylor, who serves as board chair; and new appointees James Demitrieus and Benjamin Smeal.

Demitrieus comes to the company with experience in numerous financial and executive roles, and he served as the CEO of another biometrics company, Eyelock, from 2010 to 2018. For the past two years he has served as the Managing Director of investment firm Jameson Associates.

Smeal also comes from the world of finance, having been a Senior Analyst at hedge fund Kenmare Management from 2007 to 2017. Most recently, he was the Associate Director of Public Equities at Willett Advisors, which managed the assets of Michael Bloomberg and Bloomberg Philanthropies.

Commenting on the new appointees, CEO Taylor said that Demitrieus offers “knowledge and experience in the field of biometrics, in addition to extensive Fortune 1000 plus start up leadership, go-to-market, finance and accounting skills.” Smeal, meanwhile, brings “capital market expertise, coupled with his substantial experience working with undervalued companies and his ability to ask difficult questions,” which will help ImageWare’s management to strategize about future growth.

The financing and appointments represent the latest step in a sweeping organizational transformation undertaken by Taylor since her appointment as CEO near the beginning of the year. In announcing these latest changes, Taylor emphasized that they will help ImageWare to capitalize on the market potential of its biometric product offerings.

“With the closing of this financing, my enthusiasm and optimism have reached new heights,” she said, adding later, “With our new team and renewed strategy, ImageWare is positioned to execute and will drive these solutions across government, financial, transportation, education, and telecommunications sectors to deliver profit.”

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November 16, 2020 – by Alex Perala