Magna purchases Hudson Bay Master Fund's Convertible Debt in the Company
In Connection With the Financing, Company Executives Convert $1.8 Million of Debt Into Equity
DELRAY BEACH, Fla., Nov. 5, 2014 (GLOBE NEWSWIRE) -- VeriTeQ Corporation (OTC Markets:VTEQ) ("VeriTeQ" or the "Company"), a provider of implantable medical device identification and radiation dose measurement technologies, announced today that it has entered into a securities purchase agreement (the "SPA") and convertible note with Magna Equities II, LLC ("Magna"). Under the SPA, the Company expects to issue additional promissory notes on substantially identical terms throughout November and December for total net proceeds of up to $450,000.
In conjunction with the financing, Magna has purchased from Hudson Bay Master Fund Ltd. two promissory notes issued by the Company in November 2013 and May 2014, with a current principal amount totaling approximately $352,000. Under the terms of the financing, the maturity date of the notes due November 13, 2014, has been extended to July 13, 2015. Also in connection with entering into the SPA with Magna, the Company entered into agreements with its Chief Executive Officer, Scott R. Silverman, to convert $1.4 million owed to him, and with its President, Randolph Geissler, to convert $441,000 owed to him, into a total of 1,841 shares of the Company's newly designated Series D Convertible Preferred Stock, which will vest/convert on January 1, 2017, or upon a change of control.
"We believe this new financing agreement with Magna, with whom we have worked for several months, will result in a positive outcome for the Company and our stockholders," said Silverman. "We continue to have confidence in in the opportunities for our business, and look forward to cementing relationships with strong partners for the continued expansion of our technology around the world."
Additional terms of the financing and the conversion of liabilities owed to Messrs. Silverman and Geissler are discussed in the Company's Form 8-K filed with the SEC on November 5, 2014.
About Magna
Magna is a New York-based investment firm that creates lasting relationships with portfolio companies across Equities, Ventures and Entertainment.
Magna Equities directly invests into lower middle market public companies across all sectors and geographies. Investing over $200M since 2009, the company is recognized for its individualized approach to each relationship and its commitment to the best interests of the portfolio company in every investment. Providing strategic support in addition to equity capital, Magna Equities continues to be among the most active investors in its market segment. For more information on Magna Equities, please visit www.mag.na.
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.
Statements in this press release about our future expectations, including the likelihood that the Company will issue additional promissory notes on substantially identical terms throughout November and December for total net proceeds of up to $450,000; the likelihood that this new financing with Magna will result in a positive outcome for the Company and our stockholders; the likelihood that the Company will cement relationships with strong partners for the continued expansion of our technology around the world; 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 Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and our actual results could differ materially from expected results. These risks and uncertainties include, without limitation, VeriTeQ's ability to raise capital; VeriTeQ's ability to successfully commercialize its Q Inside Safety Technology; as well as other risks. Additional information about these and other factors may be described in VeriTeQ's Form 10-K, filed on April 15, 2014, as amended August 19, 2014; and Forms 10-Q, filed on August 20, 2014, as amended September 17, 2014; May 14, 2014, as amended August 20, 2014; and future filings with the Securities and Exchange Commission 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.