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PositiveID to Issue $4M in Senior Notes to Investor

NEW YORK (GenomeWeb) – PositiveID will issue $4 million in 4 percent discount senior secured convertible promissory notes to Dominion Capital, an institutional investor, the firm announced today in a statement and in a document filed with the US Securities and Exchange Commission.

The financing will help the Delray Beach, Fla.-based molecular diagnostics firm continue the development of Firefly Dx, a hand-held, real-time PCR pathogen detection system; restructure existing debt; and provide general working capital.

The series of eight notes, funded over the next seven months, will accrue interest at 12 percent per annum, and the initial note has a maturity date of May 21, 2016. Dominion Capital has the right to convert the notes into shares of common stock at a fixed conversion price equal to 95 percent of the trading price immediately prior to the closing of each note, subject to certain adjustments. No warrants were issued in connection with the financing.

"This financing will be integral to our efforts to continue the development of our Firefly Dx system for rapid diagnostics using real-time PCR. We believe this transaction provides us with the capital required to get us to the next critical stage of our development of Firefly, ultimately enabling us to bring this product to market," William Caragol, chairman and CEO of PositiveID, said in the firm's statement.  

Aegis Capital served as placement agent for the agreement.