Intellicheck, the Melville, N.Y., company that develops technology to stop identity theft, has announced it will have a secondary public offering of 1.5 million shares of stock sold at $6.50 per share.
As part of the offering, Intellicheck has granted the underwriter a 30-day option to purchase up to an additional 230,769 shares.
Intellicheck said Friday (June 19) the proceeds, totaling $10 million, will be used for general corporate purposes and working capital.
Northland Capital Markets is acting as the manager for the offering and B. Riley FBR is serving as the company’s financial adviser.
“We plan to expand our business in the near term by pursuing a strategy designed to increase market share in our existing markets and expand into new product markets that are expected to benefit from fraud prevention, enhanced safety and regulatory compliance,” the company said in its filing with the Securities and Exchange Commission. “For example, we have extended our technologies into online applications to provide enhanced safety, regulatory compliance and fraud prevention for the billions of transactions that occur online each day. We have also incorporated biometric, facial recognition and other enhancements to several of our current product offerings.”
Intellicheck said it expects to close the offering on Tuesday, June 23.
Last month, Intellicheck reported its first-quarter revenue grew 144 percent to $3,115,000, compared to $1,279,000 in the first quarter of last year. Also, its software-as-a-service revenue in the first quarter grew 160 percent and totaled $2,238,000 versus $861,000 in the prior year comparable period.
“We believe our strong growth in year-over-year SaaS revenues and our increased product adoption in key markets during the first quarter demonstrate that our model is working,” Intellicheck CEO Bryan Lewis said in a statement at the time.
“Clearly, the shutdown of retailers and restaurants and the effect of furloughs has influenced consumer spending habits and transaction counts have been impacted by shelter-at-home mandates in most markets.”
Net income in the first quarter was $27,000 or $0.00 per diluted share versus a net loss of $1.2 million or $0.08 per diluted share for the comparable prior-year period.