VerifyMe, Inc. (NASDAQ: VRME) shares gained ground Tuesday. The Lake Mary, Fla-based company provides brand owners time and temperature sensitive logistics, authentication, anti-counterfeiting, and brand enhancement services, today announced its entry into a warrant inducement agreement with an existing institutional investor for the immediate exercise of an outstanding warrant held by the existing investor to purchase an aggregate of 1,461,896 shares of the Company's common stock.
The warrants were issued by VerifyMe on April 14, 2022 and have an exercise price of $3.215 per share. The gross proceeds to VerifyMe from the exercise of the warrants are expected to be approximately $4.7 million, prior to deducting financial advisor fees and other offering expenses. The closing of the warrant inducement transaction is expected to occur on or about January 15, 2025, subject to satisfaction of customary closing conditions.
In consideration for the immediate exercise of the existing warrants for cash, the Company will issue a new unregistered warrant to purchase up to 1,461,896 shares of common stock. The new warrant will have an exercise price of $4.00 per share, will be exercisable immediately upon issuance, and will expire on the five and one-half year anniversary from the date of issuance. VerifyMe has agreed to file a registration statement with the Securities and Exchange Commission covering the resale of the shares of common stock issuable upon exercise of the new warrant.
VRME shares added 37 cents, or 8.9%, to $4.50.
