ICT completes $3.5m private placement
09 January 2008 | 1435 views | 0
Source: Innovative Card Technologies
Innovative Card Technologies, (NASDAQ:INVC), developers of the ICT DisplayCard for e-banking, e-commerce and data access authentication, announced today the completion of a private placement of $3.5 million of 8% Senior Secured Convertible Debenture with institutional and other accredited investors.
As part of the transaction, the Company issued the investors warrants to purchase an aggregate of 700,000 shares at $2.75 per share. The Company intends to use the proceeds towards working capital to propel the commercialization of the ICT DisplayCard authentication device. Los Angeles-based T.R. Winston & Company acted as placement agent.
The $3.5 million will be used as working capital to drive commercialization of the company's in-demand, one-time passcode ICT DisplayCard. The authentication device is being tested in online banking and data systems access applications by major financial institutions on six continents.
"This latest round of financing is a strong show of confidence in the commercialization of our ICT DisplayCard," said Steven R. Delcarson, CEO & President of Innovative Card Technologies. "With cards in consumer's hands in both the US and Korea, and many pilots underway at leading global financial institutions, we are beginning to gain real momentum in capitalizing on our product's significant market potential."
The ICT DisplayCard integrates the security of a one-time password token directly into a card the size of a standard payment card. At the push of a button on the card, a one-time password is shown on the card's integrated display. During an online transaction, this number is entered into a user interface with other information (such as the user's login name and static PIN) for multifactor authentication.