BIO-key International, Inc. (OTCMKTS:BKYID) Files An 8-K Entry into a Material Definitive Agreement

BIO-key International, Inc. (OTCMKTS:BKYID) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01     Entry into a Material Definitive Agreement.

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On March 12, 2020, BIO-key International, Inc. (the “Company”) and Lind Global Macro Fund, LP (the “Investor”) entered into an Amended and Restated Senior Secured Convertible Promissory Note, due April 13, 2020 (the “A&R Note”). The A&R Note replaced the Senior Secured Convertible Promissory Note, dated July 10, 2019 payable to Investor (the “Original Note”).

The principal amount of the A&R Note, $3,789,000, is due and payable in full on April 12, 2020 (the “Maturity Date”) and is convertible at the option of the Investor into shares of our common stock at a fixed conversion price of $0.65 per share, subject to a blocker provision which prohibits conversion if such conversion would result in the Investor being the beneficial owner of in excess of 4.99% of our common stock which will be increased to 9.99% if the Investor acquires more than 4.99% of our common stock.

Upon the occurrence of standard and customary events of default and expiration of any applicable cure periods, which do not apply to payment, default repayment of the outstanding principal amount due under the A&R Note is subject to acceleration in the discretion of the Investor in which event, interest will accrue at the higher of 18% per annum or the maximum amount permitted by applicable law and the Company will become obligated to pay an amount equal to 10% of the then outstanding principal amount due under the A&R Note.

The provisions of the A&R Note not described above are substantially similar to the Original Note. The Company and the Investor agreed to execute the A&R Note as a result of negotiations resulting from the Investor accelerating the amounts due under the Original Note in connection with a missed principal payment under the Original Note.

The forgoing securities were issued in a private placement transaction to one accredited investor to the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended, without engaging in any advertising or general solicitation of any kind.

Maxim Group LLC (“Maxim”) served as a financial advisor in connection with the forgoing transaction.

The foregoing description of the A&R Note does not purport to be complete and is qualified in its entirety by reference to the complete text of such agreement, a copy of which will be filed as an exhibit to the Company’s next Quarterly Report on Form 10-Q.

Item 2.03     Creation of a Direct Financial Obligation or an Obligation under an Off-Balance SheetArrangement of a Registrant.

The information provided in Item 1.01 is hereby incorporated by reference.

Item 2.04.     Triggering Events that Accelerate or Increase aDirect Financial Obligation or an Obligationunder an Off-Balance Sheet Arrangement.

The information provided in Item 1.01 is hereby incorporated by reference.

Item 3.02     Unregistered Sales of Equity Securities. 

The information provided in Item 1.01 is hereby incorporated by reference.


About BIO-key International, Inc. (OTCMKTS:BKYID)

BIO-key International, Inc. develops and markets fingerprint biometric identification and identity verification technologies, cryptographic authentication-transaction security technologies, as well as related identity management and credentialing software solutions. The Company is also engaged in developing automated, finger identification technology that supplements or compliments other methods of identification and verification, such as personal inspection identification, passwords, tokens, smart cards, identity cards, public key infrastructure (PKI), credit card, passports, driver’s licenses, one-time password (OTP) or other form of possession or knowledge-based credentialing. Its solutions identify individuals and verify, or confirm, their identity before granting access to, among other things, corporate resources, subscribed data and services, Web portals, applications, physical locations or assets.

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