BIO-key International announced that its Board of Directors has approved a 1-for-12 reverse split of the Company's common stock.
BIO-key International, provider of enterprise and consumer biometric software and hardware authentication solutions, announced that its Board of Directors has approved a 1-for-12 reverse split of the Company's common stock. The reverse stock split, which was approved by shareholders earlier this year, is intended to increase the average share price of BIO-key's common stock, in support of the Company's plans to seek uplisting to The Nasdaq Capital Market. BIO-key has filed a listing application with Nasdaq and plans to pursue such listing as soon as it is able to meet all initial listing criteria, particularly the $3.00 minimum bid price requirement.
Trading of the Company's common stock on the OTCQB Market will continue, on a post-split basis, with the opening of markets on Thursday, December 29, 2016, under the temporary trading symbol "BKYID" and under the new CUSIP number 09060C309. The trading symbol would revert to "BKYI" after 20 business days.
Every twelve (12) shares held will be combined into one (1) new share of BIO-key common stock. In lieu of fractional shares, shareholders will receive a rounded up new share of BIO-key Common stock. Except for those with pre-split share ownership of eleven shares or fewer, shareholders' percentage ownership in the Company will remain virtually unchanged as a result of the reverse split. Pro rata adjustments will also be made to BIO-key's restricted stock, convertible preferred stock, warrants and stock option programs.
Following completion of the reverse split, BIO-key's common shares issued and outstanding will be reduced to approximately 6.1 million (from approximately 73.1 million) and the Company's adjusted common shares outstanding, giving effect to the conversion of the Company's convertible preferred stock, will be approximately 11.5 million. BIO-key's total authorized shares remain 170 million following the reverse split.
Mike DePasquale, BIO-key Chairman and CEO said, "Having secured shareholder approval at the beginning of the year, we are excited to execute the reverse split which is a major step in our efforts to uplist our common stock on The Nasdaq Capital Market. We believe that the reverse split will also provide the Company with renewed flexibility with respect to funding our growth or using our equity to pursue synergistic M&A activity.
While we cannot be certain of the outcome of our uplisting process, the Board believes BIO-key's visibility, long term goals and corporate brand are far better served both by a higher share price and the potential for a higher profile listing on Nasdaq. We believe these factors will help expand the potential pool of investors who would be able to consider an investment in BIO-key, while also supporting the growing visibility of our software and hardware products and the BIO-key brand.”
To support its investor visibility and uplisting efforts, BIO-key has retained the services of Maxim Group, a New York-based investment bank.