Loan & DebtMay 1, 2026, 05:36 PM
authID Inc. Raises $3.765M via Senior Secured Debentures & Warrants
AI Summary
authID Inc. completed a private placement on April 29, 2026, raising approximately $3.765 million through the issuance of senior secured debentures and accompanying stock purchase warrants to accredited investors. The debentures mature in six months and do not bear interest, while the warrants are exercisable at $1.50 per share for a five-year term. Additionally, investors received fee shares, and the company granted registration rights for the equity securities, all in compliance with Nasdaq listing rules.
Key Highlights
- Closed private placement raising approximately $3.765 million from accredited investors.
- Issued Senior Secured Debentures maturing in October 2026, bearing no interest.
- Debentures are secured by a first-priority lien on substantially all company assets.
- Issued Stock Purchase Warrants to purchase common stock at $1.50 per share for five years.
- Investors received Fee Shares equal to 15% of the principal amount invested.
- Aggregate shares issuable limited to 19.99% of outstanding common stock without approval.
- Debentures include a most-favored-nation clause and automatic conversion into subsequent financing.
Price Impact
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