Last month, the outfit joined forces with Microsoft in a partnership that will solicit interest in a privatized version of the Registered Traveler program. It aims to provide a compromise between ensuring security of airports, while allowing frequent flyers to move through screening checkpoints faster.
The Belleview, Washington company is a curious hybrid, in that it is quoted on the Nasdaq SmallCap market. Yet because it has never generated enough cash from operations to fund its activities, it is as dependent as any start-up on regular injections of cash from investors.
In its latest agreement, Saflink will issue approximately 8.8 million shares of common stock at a purchase price of $1.70 per share. It has also agreed to issue the investors with warrants to purchase an additional 2.6 million shares at an exercise price of $2.50 per share at any time over the next five years. Its current share price is $1.80.
Last year, Saflink made a net loss of $18.1m on revenues of $6.4m.
