SEBASTIAN, Florida,
January 15, 2019 /PRNewswire/ --
NXT-ID, Inc. (NASDAQ: NXTD) (the "Company") today announced
the signing of a Letter of Intent ("LOI") for a new $16.5 million senior secured term loan (the "Term
Loan"). The Company will use the proceeds from the Term Loan to
refinance its existing loan facility and to pay for accrued
interest and costs associated with the refinancing. In addition,
the Term Loan proceeds will also provide ongoing working capital,
funds for future capital expenditures, and capital for general
corporate purposes.
Key features of the Term Loan include:
- Interest rate of LIBOR + 11.00%;
- Maturity date of three years after closing; and
- Three-year term with minimum principal payments amortized over
96-months.
"We are very pleased to have made progress on the refinancing of
our existing debt facility," said NXT-ID CEO Gino Pereira. "Completing this transaction will
enable us to move forward with the planned spin-off of our Payments
Division, which we believe will increase overall value for our
shareholders."
Subject to the closing, the refinancing would remove a key
covenant of the existing debt facility and allow the Company to
proceed with the spin-off of its Payment Division, which include
its Fit Pay, Inc. subsidiary and other assets. The terms of the LOI
require the Company to complete the spin-off within 15 days of
closing the Term Loan.
The Company previously announced that it intends to separate its
payments, authentication and credential management business into an
independent company and distribute those shares
to NXT-ID shareholders through the execution of a
spin-off, which the Company believes will qualify as a tax-free
distribution. Immediately following the spin-off
transaction, NXT-ID shareholders, who own shares
of NXT-ID on the to-be-announced record date will own
shares of both companies. Prior to the record date of the
distribution, which will be established by the Board, NXTD shares
continue to include shareholder rights to any pro-rata dividend
that may result from the spin-off.
The new company, PartX, Inc., will include the assets acquired
in the May 2017 business combination with Fit Pay,
Inc. as well as the payment, authentication and credential
management assets the Company developed previously by NXT-ID.
It is applying for listing on NASDAQ.
The Company anticipates closing the Term Loan within 45 days of
the signing of the LOI, which occurred on January 10, 2019. The closing of the Term Loan is
subject to customary due diligence and various terms and
conditions. The anticipated timing of the closing is subject to
change.
About NXT- ID, Inc.
NXT-ID, Inc. (NASDAQ: NXTD) provides a comprehensive platform of
technology products and services that enable the Internet of Things
(IoT). With extensive experience in access control, biometric and
behavior-metric identity verification, security and privacy,
encryption and data protection, payments, miniaturization and
sensor technologies, NXT-ID develops and markets groundbreaking
solutions for payment and IoT applications. Its industry-leading
technology products and solutions include MobileBio®, a suite of
biometric solutions that secure consumers' mobile platforms, the
Wocket™, a next-generation smart wallet and the Flye, a digital
credit card developed in collaboration with WorldVentures.
NXT-ID includes mobile and IoT-related subsidiaries: LogicMark,
LLC, a manufacturer and distributor of non-monitored and monitored
personal emergency response systems ("PERS") sold through
dealers/distributors and the United States Department of Veterans
Affairs and Fit Pay, Inc., a proprietary technology platform that
delivers end-to-end solutions to device manufacturers for
contactless payment capabilities, credential management,
authentication and other secure services within the IoT ecosystem.
Learn more about NXT-ID at www.nxt-id.com. FitPay and the FitPay
Payment Platform are the sole property of Fit Pay, Inc. For NXT-ID
Inc. corporate information contact: info@nxt-id.com
Forward-Looking Statements for NXT-ID: This
press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements reflect management's current
expectations, as of the date of this press release, and involve
certain risks and uncertainties. Forward-looking statements include
statements herein with respect to the successful execution of the
Company's business strategy. The Company's actual results could
differ materially from those anticipated in these forward-looking
statements as a result of various factors. Such risks and
uncertainties include, among other things, our ability to establish
and maintain the proprietary nature of our technology through the
patent process, as well as our ability to possibly license from
others patents and patent applications necessary to develop
products; the availability of financing; the Company's ability to
implement its long range business plan for various applications of
its technology; the Company's ability to enter into agreements with
any necessary marketing and/or distribution partners; the impact of
competition, the obtaining and maintenance of any necessary
regulatory clearances applicable to applications of the Company's
technology; and management of growth and other risks and
uncertainties that may be detailed from time to time in the
Company's reports filed with the Securities and Exchange
Commission.
Media Contacts:
Chris Orlando
chris.orlando@nxt-id.com
+1-760-468-7273
D. Van Zant
+1-800-665-0411
press@nxt-id.com
SOURCE NXT-ID, Inc.