VerifyMe Announces $5.0 Million Private Placement Priced At-the-Market Under Nasdaq Rules

Rhea-AI Summary

VerifyMe, Inc. (NASDAQ: VRME) announced a $5.0 million private placement securities purchase agreement with accredited investors. This involves selling 1,555,208 shares of common stock at an effective purchase price of $3.215 per share, including accompanying warrants. The warrants are exercisable within five years at the same price. The close is expected on April 14, 2022. Certain officers and directors plan to purchase 93,312 shares and warrants. The issued securities are unregistered under the Securities Act and will be offered solely to accredited investors.

Positive

• Raised $5.0 million through private placement.
• Involvement of certain officers and directors indicates confidence in the offering.

Negative

• The securities are unregistered, creating potential liquidity issues for investors.

ROCHESTER, N.Y., April 12, 2022 /PRNewswire/ -- VerifyMe, Inc. (NASDAQ: VRME) ("VerifyMe," "we," "our," or the "Company"), providing authentication, supply chain monitoring, and data-rich consumer engagement features using unique smartphone readable codes on their products to brand owners, announced today that it has entered into a securities purchase agreement with certain accredited investors to purchase approximately $5.0 million of its common stock (or-prefunded warrants to purchase common stock in lieu thereof) and warrants through a private placement priced at-the-market under Nasdaq rules. Each share of common stock (or pre-funded warrant in lieu thereof) is being sold together with an accompanying warrant at a combined effective purchase price of $3.215. Under the terms of the purchase agreement, VerifyMe has agreed to sell 1,555,208 shares of common stock (or pre-funded warrants in lieu thereof) and warrants to purchase up to an aggregate of 1,555,208 shares of common stock. The warrants will be exercisable for a period of five years commencing six months from the date of issuance and have an exercise price of $3.215 per share. Certain officers and directors have indicated their intention to purchase up to 93,312 shares of common stock and 93,312 warrants in this offering. The closing of the private placement is expected to occur on April 14, 2022, subject to the satisfaction of certain customary closing conditions set forth in the securities purchase agreement.

Maxim Group LLC is acting as the sole placement agent for the offering.

The shares of common stock, pre-funded warrants and warrants described above have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (SEC) or an applicable exemption from such registration requirements. The securities were offered only to accredited investors. Pursuant to a registration rights agreement with the investors, the Company has agreed to file one or more registration statements with the SEC covering the resale of the shares of common stock and the shares issuable upon exercise of the pre-funded warrants and warrants.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About VerifyMe, Inc.

VerifyMe, Inc. (NASDAQ: VRME), is a technology solutions provider specializing in products to connect brands with consumers. VerifyMe technologies give brand owners the ability to gather business intelligence while engaging directly with their consumers. VerifyMe technologies also provide brand protection and supply chain functions such as counterfeit prevention, authentication, serialization, and track and trace features for labels, packaging and products. To learn more, visit www.verifyme.com.

Cautionary Note Regarding Forward-Looking Statements

This release contains forward-looking statements regarding revenue opportunities, the use of our products with additional capabilities, strategic partnerships, commercialization efforts, our sales pipeline and opportunities, and geographic areas, markets and industries in which we intend to expand our business. The words "believe," "will," "expect" and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include, market and other conditions, the ability to consummate the offering, the impact of the COVID-19 pandemic, intellectual property litigation, the successful development of our sales and marketing capabilities, our ability to retain key management personnel, our ability to work with partners in selling our technologies to businesses, production difficulties, our inability to enter into contracts and arrangements with future partners, issues which may affect the reluctance of large companies to change their purchasing of products, acceptance of our technologies and the efficiency of our authenticators in the field. These risk factors and uncertainties include those more fully described in VerifyMe's Annual Report and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled "Risk Factors." Should one or more of these risks or uncertainties materialize, or should any of our underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

For Licensing or Other Information Contact:
Company: VerifyMe, Inc.
Website:  http://www.verifyme.com

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SOURCE VerifyMe, Inc.

FAQ

What is the recent news about VerifyMe (VRME) regarding funding?

VerifyMe announced a $5.0 million private placement agreement on April 12, 2022.

What are the terms of the $5 million securities purchase agreement for VRME?

The agreement includes selling 1,555,208 shares at $3.215 each, bundled with warrants.

When is the closing date for VerifyMe's recent private placement?

The closing is expected on April 14, 2022.

Who is acting as the placement agent for VerifyMe's offering?

Maxim Group LLC is the sole placement agent for the offering.

Are the securities from VerifyMe's offering registered?

No, the securities are unregistered under the Securities Act.