T Stamp Inc (NASDAQ:IDAI, EURONEXT:AIID) (dba Trust Stamp), the AI-powered identity software provider, announced on Tuesday that it has entered into a securities purchase agreement with an institutional investor to raise approximately $2 million through a combination of a registered direct offering and a private placement.
The company will issue over 1.4 million shares of common stock, or pre-funded warrants in lieu thereof, at an offering price of $0.3223 per share.
In a concurrent private placement, Trust Stamp will also issue unregistered warrants to purchase up to 2.86 million shares of common stock. The exercise price for these warrants is set at $0.3223 per share, with a five-year expiration date following shareholder approval.
Additionally, Trust Stamp entered into a warrant inducement agreement with the investor, who agreed to exercise certain outstanding warrants originally issued in June and December of 2023. The amended exercise price for these warrants is also $0.3223 per share.
In consideration, Trust Stamp will issue unregistered warrants to purchase an additional 9.55 milliom shares of common stock, subject to the same terms.
The gross proceeds from these transactions are expected to be approximately $2 million, before deducting placement agent fees and other expenses.
The funds will be used for working capital, capital expenditures, general corporate purposes, and the termination of transaction documents with HCM Management Foundation.
The offering is expected to close by September 5, 2024.