BIO-key International, Inc. - BKYI STOCK NEWS

BIO-key International (NASDAQ: BKYI) has successfully completed an underwritten public offering of 38,214,500 shares of common stock and warrants, generating approximately $24.8 million in gross proceeds. Each share or pre-funded warrant was sold for $0.65, paired with a warrant to purchase an additional share at the same price, expiring in five years. The offering was managed by Maxim Group LLC, with the registration statements filed with the SEC. This capital influx supports BIO-key's biometric security solutions and potential market expansion.

BIO-key International, Inc. (BKYI) announced the pricing of an underwritten public offering of 33,230,000 shares of common stock combined with common warrants, with gross proceeds estimated at $21.6 million before expenses. Each share is priced at $0.65, and the offering is expected to close around July 23, 2020, subject to customary conditions. Additionally, the underwriter has a 45-day option to purchase 4,984,500 more shares and warrants. This offering aims to bolster the company’s financial position in the biometric authentication sector.

BIO-key International (NASDAQ: BKYI) is experiencing accelerating growth in its identity and access management (IAM) solutions within higher education. Institutions including Santa Rosa Junior College, Wesley Theological Seminary, and the University of Guam have adopted the PortalGuard solution to enhance cybersecurity and improve user access. PortalGuard provides secure Single Sign-On (SSO) capabilities and flexible two-factor authentication, addressing the increasing cybersecurity threats in education. Mark Cochran, President of PortalGuard, emphasizes the importance of addressing new cyber challenges while fostering digital transformation.

BIO-key International, Inc. (NASDAQ: BKYI) announced its expanding presence in the California Community College System, now supporting fifty colleges. The North Orange County Community College District selected the PortalGuard solution to enhance security and streamline user access, replacing multiple usernames and passwords. PortalGuard offers secure single sign-on capabilities across various applications, reducing IT help desk costs through self-service password resets. This trend highlights an increasing demand for efficient identity and access management solutions in higher education.

BIO-key International (NASDAQ: BKYI) announced a new contract with Arcadia University for its PortalGuard IAM solution following the acquisition of PistolStar. The university aims to implement multifactor authentication, single sign-on, and self-service password reset across various applications to enhance user experience and security. PortalGuard is recognized for its comprehensive IAM solutions, catering especially to higher education, and aims to meet evolving IT challenges.

BIO-key International, Inc. (NASDAQ: BKYI) has completed its acquisition of PistolStar Inc. for $2.5 million, targeting enhanced biometric authentication and security solutions. The acquisition is expected to positively impact revenue and operating income right away, partly funded by a convertible note of $1.575 million. PistolStar's PortalGuard® platform will expand BIO-key’s offerings, combining multi-factor authentication with its biometric expertise. The acquisition aims to address increasing enterprise security needs amid the pandemic, broadening market opportunities for both companies.

BIO-key International (NASDAQ: BKYI) announced its selection by a West Coast State Election Office to implement its biometric authentication solution for secure access to the voter registration database. This deployment involves the use of BIO-key's biometric software engine and FIPS compliant fingerprint scanners as part of a multi-factor authentication (MFA) strategy. The contract extends from previous implementations in Florida, demonstrating BIO-key's growing recognition in election security.

BIO-key International, Inc. (BKYI) has announced a definitive agreement to acquire PistolStar for $2.5 million in cash. This acquisition is expected to enhance revenue and operating income immediately. PistolStar, known for its PortalGuard multi-factor authentication platform, generated $1.65 million in revenue and $455,000 in net profit in 2019. By integrating PortalGuard, BIO-key will expand its market reach and offer innovative IDaaS solutions while eliminating licensing costs, thus improving gross margins. The deal is expected to close by the end of Q2 2020.

BIO-key International (BKYI) reported its financial results for 2019 and preliminary Q1 2020 metrics. For 2019, revenues fell to $2.3M from $4.0M due to a shift to a subscription model, resulting in a $14.6M net loss. Preliminary Q1 2020 revenues were $530,000, a slight decline from $552,000 in Q1 2019. However, gross margin improved to 67%. The company secured contracts worth $75M from its Africa subsidiary, focusing on biometric solutions, and completed a $2.4M convertible note financing. CEO Michael DePasquale expressed confidence in future revenue growth as large contracts commence.