Information Analysis Announces $10,000,000 Equity Financing
December 10 2021 - 9:00AM
Information Analysis Incorporated (NASDAQ: IAIC) (“IAI”) today
announced it has obtained subscriptions for the sale of 3,289,525
Units at a price of $3.04 per Unit in a private investment in
public equity financing (“PIPE”). Each Unit consists of a share of
$0.01 par value common stock of the Company (“Common Stock”) and
the right to receive a warrant exercisable for .20 shares of common
stock which equates to one share for every five Units purchased.
Each such warrant is exercisable commencing January 1, 2023 through
December 31, 2026 at a price of $4.50 for each whole share. The
price per Unit was determined using the 5-day Volume Weighted
Average Price from November 26, 2021 to and including December 2,
2021.
The Company estimates net proceeds from the PIPE
will be approximately $9.9 million, after deducting attorneys fees
and other expenses. No commissions were paid in connection with
this financing. The financing was led by the Company’s Chairman and
CEO, Mr. Jamie Benoit, and newly-appointed board member Chip
DiPaula, with participation from existing investors, Company
executives, and members of the IAI Board of Directors. Several
limited partners of Marlinspike Capital
(www.marlinspikecapital.com) also made leading investments in the
PIPE.
Jamie Benoit, Chairman and CEO, noted, “We
believe that IAI is in an excellent position to continue its
transformation strategy and reposition the Company as a disruptive
technology and commercial enablement leader in government and
global private sector verticals. We were delighted that members of
the management team and our Board of Directors invested in the
transaction, which reflects our collective belief in the
significant potential of IAI in the market.”
Mr. Benoit added, “The speed with which we
closed on this financing, its significant oversubscription, the
fact that this was done without incurring bankers’ fees and the
broad base of new stockholders who invested today demonstrates
acceptance of our thesis and belief in our management team. The
proceeds from this financing positions us to close on the
acquisition of Gray Matters, Inc. just three months after I joined
the Company and provide the additional working capital required to
aggressively deploy our unique blockchain technology to the wider
government and commercial markets.”
The securities sold in this private placement
have not been registered under the Securities Act of 1933, as
amended, and may not be offered or sold in the U.S. except pursuant
to an effective registration statement or an applicable exemption
from the registration requirements. IAI has agreed to file a
registration statement with the Securities and Exchange Commission
registering the resale of the shares of common stock issued in
these private placements.
This press release shall not constitute an offer
to sell or a solicitation of an offer to buy these securities, nor
shall there be any sale of these securities in any state or other
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to the registration or qualification under the
securities laws of any such state or other jurisdiction.
About Information Analysis
IncorporatedInformation Analysis Incorporated
(www.infoa.com), headquartered in Fairfax, Virginia, is an
information technology products and services company. The Company
has historically specialized in software conversions, systems
modernization and security. With announcement of the reorganization
of the historic government services business into its Tellenger
subsidiary and the acquisition of Gray Matters, Inc. the
Company will begin offering its own suite of
Blockchain-enabled secure supply chain products and will begin its
transformation into a software provider.
Additional information for
investors This release may contain forward-looking
statements regarding the Company's business, customer prospects, or
other factors that may affect future earnings or financial results.
Such statements involve risks and uncertainties which could cause
actual results to vary materially from those expressed in the
forward-looking statements. Investors should read and understand
the risk factors detailed in the Company's 10-K for the fiscal year
ended December 31, 2020 and in other filings with the Securities
and Exchange Commission.
For additional information contact:Jeremy
Hellman, CFAVice PresidentThe Equity Group Inc.(212) 836-9626
Tim Hannon, CPAChief Financial
OfficerInformation Analysis, Inc.thannon@infoa.com
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