@ VeriTeQ Corporation Secures Financing | SEBIO

VeriTeQ Corporation Secures Financing

Posted by on Nov 15, 2013

DELRAY BEACH, FL. – VeriTeQ Corporation (“VeriTeQ” or the “Company”, f/k/a Digital Angel Corporation) (OTC Markets: DIGAD), a provider of implantable medical device identification and radiation dose measurement technologies, announced today that it has completed a multi-tranche financing totaling $1,500,000 of gross proceeds, with the initial investment amount of $750,000 expected to fund on or around November 13, 2013. The financing is structured as a convertible note and warrants to purchase shares of VeriTeQ’s common stock.

On November 13, 2013, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with a group of institutional and accredited investors pursuant to which VeriTeQ has authorized the issuance of senior convertible notes (the “Notes”), which Notes shall be convertible into shares of common stock, and warrants to purchase up to 2,422,222 shares of VeriTeQ’s common stock (the “Warrants”). The Company will keep in a controlled account an amount of the cash proceeds of the offering equal to one-half of the initial aggregate principal amount of Notes issued to the investors, the funds of which will be applied to pay any redemption or other payment due under the applicable Notes to the applicable holder from time to time, or will be released to the Company at any time the principal in the applicable control account exceeds the principal of the applicable Notes then outstanding and at such other times as specified in the definitive documentation.

The transaction closed on November 13, 2013. The Company expects to receive total gross proceeds of $1.5 million, less transaction expenses.

Scott R. Silverman, Chairman and CEO of VeriTeQ, stated, “This bridge financing is yet another step we have taken to execute our strategy as promised to our investors. With the share exchange agreement, recapitalization of the Company and name change now behind us, securing this new financing will help us continue the marketing and commercialization of our Q Inside Safety Technology as we build VeriTeQ for the future.”

In connection with the financing, VeriTeQ entered into a registration rights agreement pursuant to which it agreed to file a registration statement with the U.S. Securities and Exchange Commission (the “SEC”) relating to the offer and sale by the investors of the shares of common stock issuable upon conversion of the Notes and Warrants.

The Company has filed a Form 8-K with additional details regarding the financing.

Dawson James Securities, Inc. acted as exclusive placement agent for this transaction. Zacks & Company acted as financial advisor in the transaction.

About VeriTeQ

VeriTeQ develops innovative, proprietary RFID technologies for implantable medical device identification, and dosimeter technologies for use in radiation therapy treatment. VeriTeQ offers the world’s first FDA cleared RFID microchip technology that can be used to identify implantable medical devices, in vivo, on demand, at the point of care. VeriTeQ’s dosimeters provide patient safety mechanisms while measuring and recording the dose of radiation delivered to a patient in real time. For more information on VeriTeQ, please visit www.veriteqcorp.com.

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