T Stamp Inc (dba Trust Stamp (NASDAQ:IDAI, EURONEXT:AIID)) is planning to raise around $1.5 million through a private placement, the global provider of AI-powered trust and identity services told shareholders.
The Atlanta, Georgia-based company announced that it has entered into a securities purchase agreement with a single institutional investor to sell approximately $1.5 million of its common stock and warrants in a private placement.
Under the term sheet, each share of common stock is being sold together with two warrants to purchase two shares of common stock at a combined purchase price of $1.55.
READ: Trust Stamp posts jump in 1H 2022 net revenue on new and existing customer sign-ups
Trust Stamp has agreed to sell 975,000 shares of common stock and warrants to purchase up to an aggregate of 1,950,000 shares of common stock. The warrants will be exercisable for a period of five years from the date of issuance and have an exercise price of $1.77 per share.
The private placement is expected to close by September 14, 2022.
Maxim Group LLC is acting as the sole placement agent for the offering.
In connection with the private placement, Trust Stamp said it had also entered into a registration rights agreement with the investor, whereby the company has agreed to file one or more registration statements with the SEC for the resale of the securities issued in the private placement, including the shares of common stock underlying warrants issued in the private placement.
Trust Stamp’s technology provides organizations with advanced biometric identity solutions that reduce fraud, protect personal data privacy, increase operational efficiency, and reach a broader base of users worldwide through its unique data transformation and comparison capabilities.
The technology is used in multiple sectors, including banking and finance, regulatory compliance, government, real estate, communications, and humanitarian services.
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