BIO-key secures $3.1 million through warrant exercise agreement

HOLMDEL, N.J. - BIO-key International, Inc. (NASDAQ:BKYI), currently trading at $1.26 and rated FAIR by InvestingPro’s comprehensive analysis, announced Monday it has entered into a warrant inducement agreement with an existing institutional investor for the exercise of previously issued warrants at a reduced price.

Under the agreement, the investor will exercise Series A and Series B Warrants to purchase 3,091,668 shares of common stock at $1.02 per share, down from the original exercise price established when the warrants were issued on January 15, 2025.

The transaction is expected to generate approximately $3.1 million in gross proceeds for the biometric authentication company, before deducting placement agent fees and offering expenses. Maxim Group LLC is serving as the exclusive placement agent.

As part of the deal, BIO-key will issue new unregistered warrants to the investor to purchase 6,183,336 shares of common stock, also with an exercise price of $1.02 per share. These new warrants are immediately exercisable and will expire in five years.

The company has committed to file a registration statement with the Securities and Exchange Commission covering the resale of shares issuable upon exercise of the new warrants.

BIO-key specializes in biometric authentication and Identity and Access Management solutions, with its PortalGuard IAM solution currently securing access for over forty million users, according to the press release statement.

The announcement contains forward-looking statements subject to various risks and uncertainties as outlined in the company’s Annual Report on Form 10-K for the year ended December 31, 2024.

In other recent news, BIO-key International reported a significant 49% increase in revenue for the second quarter of 2025 compared to the same period last year. Despite the positive financial results, the company’s stock experienced a decline in premarket trading, which may reflect investor concerns about broader market conditions and future guidance. Additionally, BIO-key announced a new partnership with IT2Trust, a major distributor of IT security solutions in Scandinavia, marking an expansion into the Nordic market. This collaboration will focus on distributing the company’s Identity and Access Management solutions across Denmark, Sweden, Norway, and Finland. Furthermore, shareholders of BIO-key International approved all proposals at the company’s recent annual meeting. Five directors were elected to serve one-year terms on the board, including Michael W. DePasquale and Wong Kwok Fong. These developments indicate an active period for BIO-key International with strategic expansions and governance decisions.

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