PositiveID Corporation Sells Interest in VeriTeQ Corporation for $750,000
November 14 2013 - 9:00AM
PositiveID Corporation ("PositiveID") (OTCQB:PSID), a developer of
biological detection and diagnostics solutions, today announced
that it has sold its interest in VeriTeQ Corporation ("VeriTeQ")
for $750,000. In conjunction with the sale, PositiveID also entered
into a letter agreement with VeriTeQ (the "Letter Agreement"),
under which it will receive a warrant to purchase 300,000 shares of
VeriTeQ common stock.
On November 13, 2013, PositiveID entered into a stock purchase
agreement with Hudson Bay Master Fund Ltd. and other accredited
purchasers (the "SPA") to sell PositiveID's remaining equity
position in VeriTeQ, which included 871,753 shares of VeriTeQ's
common stock, and the convertible note owed from VeriTeQ to
PositiveID, which was convertible into 135,793 shares of VeriTeQ
common stock, for total proceeds of $750,000. Pursuant to the
Letter Agreement, VeriTeQ will deliver a warrant to PositiveID to
purchase 300,000 shares of VeriTeQ common stock at a price of
$2.84.
"We are very pleased that we have monetized our investment in
VeriTeQ, which is now capitalized and gaining traction in the
market," said William J. Caragol, Chairman and CEO of PositiveID.
"We believe this sale, combined with our warrant position and
future royalties on sales of certain products, will help us
continue to focus our attention on the exciting opportunities for
our M-BAND and Firefly technologies."
PositiveID has also filed an 8-K with additional information
about the SPA and Letter Agreement.
About PositiveID Corporation
PositiveID Corporation is an emerging growth company and
developer of biological detection systems for America's homeland
defense industry as well as rapid biological testing. PositiveID is
focused on the development of microfluidic systems for the
automated preparation of and performance of biological assays in
order to detect biological threats at high-value locations, as well
as analyze samples in a medical environment. For more information
on PositiveID, please visit http://www.PositiveIDCorp.com.
Statements about PositiveID's future expectations, including,
without limitation, the likelihood that PositiveID will receive a
warrant to purchase 300,000 shares of VeriTeQ common stock at a
price of $2.84; the likelihood that this sale, combined with
PositiveID's warrant position and future royalties on sales of
certain products, will help it continue to focus its attention on
the exciting opportunities for its M-BAND and Firefly technologies;
constitute "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, Section 21E of the
Securities Exchange Act of 1934, and as that term is defined in the
Private Litigation Reform Act of 1995. Such forward-looking
statements involve risks and uncertainties and are subject to
change at any time, and PositiveID's actual results could differ
materially from expected results. Additional information about
these and other factors that could affect the Company's business is
set forth in the Company's various filings with the Securities and
Exchange Commission, including those set forth in the Company's
10-K filed on April 16, 2013, and 10-Q filed on May 20, 2013, and
August 14, 2013, under the caption "Risk Factors." The Company
undertakes no obligation to update or release any revisions to
these forward-looking statements to reflect events or circumstances
after the date of this statement or to reflect the occurrence of
unanticipated events, except as required by law.
CONTACT: PositiveID Corporation
Allison Tomek
561-805-8000
atomek@positiveidcorp.com