ImageWare Receives $2.18 Million Loan Ahead of $10 Million Series D Funding Round

ImageWare has received a $2,187,000 senior secured bridge loan that will be used to drive its ongoing business development. The loan represents an advance against an upcoming round of Series D Preferred funding, which is projected to bring in at least $10 million, and could bring in as much as $15 million if certain conditions are met.

In that regard, ImageWare indicated that its investors have already committed to the purchase of $10,935,000 in Series D Convertible Preferred Stock in the private placement. The Series D round is expected to close in roughly 30 days.

It will also coincide with a broader organizational restructure intended to increase ImageWare’s value for its shareholders. To that end, the company will completely overhaul its Board of Directors, leaving ImageWare President and CEO Kristin A. Taylor as the only holdover from the current Board. She will serve alongside four new members who will be appointed after the Series D funding is secured.

ImageWare then plans to list its Common Stock on the NASDAQ Capital Market, and will work to monetize its intellectual property to increase licensing revenue.

“We are grateful to the institutional investors and existing shareholders who believe in our organized new business plan and talented management team,” said Taylor. “We have eliminated legacy products that were not generating revenue, and reduced expenses that were weighing the business down. As a result of our renewed focus, we are seeing measurable growth of our law enforcement software and intend to aggressively go after more international markets in the public safety sector in the coming year.”

The loan will go towards general working capital, and matures on its six-month anniversary with an annual interest rate of 12 percent. All principal and accrued interest will be converted to Series D Preferred shares when the private placement closes.

The move is part of an ongoing ImageWare business transformation. The company recently partnered with ipCapital to develop an IP licensing program, and has also added a new VP of Engineering and a new VP of Product Management to its executive suite.

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September 30, 2020 – by Eric Weiss