ImageWare Systems Closes $2.3 Million Private Placement
Third Quarter Core Segments Revenue up 18% Compared to Last Year’s Quarter
SAN DIEGO, CA, November 20, 2006 -
ImageWare® Systems, Inc. (AMEX: IW), a leading developer and provider of identity management solutions, today announced it closed a private placement on Nov. 17th of 2,300 shares of Series C Convertible Preferred Stock and warrants to purchase 115,000 shares of common stock to accredited investors. The offering generated net proceeds of approximately $2.1 million. The preferred stock is initially convertible into approximately1,533,333 shares of common stock. The warrants have a term of 5 years and are initially exercisable at $1.575 per share beginning in May 2007. As part of the offering, ImageWare also issued common stock warrants and paid cash compensation to a placement agent. ImageWare will use the proceeds from the private placement for general working capital purposes.
The securities issued in the private placement have not been registered under the Securities Act of 1933, as amended. Accordingly, these securities may not be offered or sold in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act. ImageWare has agreed to file a registration statement covering resale of the securities by the accredited investor. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities.
About ImageWare Systems, Inc.
ImageWare Systems, Inc. (AMEX:IW), is a leading developer and provider of identity management solutions, providing biometric, secure credential, law enforcement and digital imaging technologies. Scalable for worldwide deployment, the Company's biometric product line includes a multi-biometric engine that is hardware and algorithm independent, enabling the enrollment and management of unlimited population sizes. ImageWare's identification products are used to manage and issue secure credentials including national IDs, passports, driver licenses, smart cards and access control credentials. ImageWare's digital booking products provide law enforcement with integrated mug shot, fingerprint Livescan and investigative capabilities. The Company also provides comprehensive digital workflow solutions for the professional photography industry. ImageWare is headquartered in San Diego, with offices in Washington DC and Canada. For more information visit www.iwsinc.com.
Safe Harbor Statement
This news release may contain forward-looking statements made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. While these statements are meant to convey to the public the company's progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management's opinion. While management believes such representation to be true and accurate based on the information available to the company, actual results may differ materially from those described. The company's operations and business prospects are always subject to risks and uncertainties. Important facts that may cause actual results to differ are set forth in the company’s periodic filings with the U.S. Securities and Exchange Commission.
