PositiveID Corporation, a developer of biological detection and diagnostics solutions, today announced that it has sold its interest in VeriTeQ Corporation ("VeriTeQ") for $750,000. In conjunction with the sale, PositiveID also entered into a letter agreement with VeriTeQ (the "Letter Agreement"), under which it will receive a warrant to purchase 300,000 shares of VeriTeQ common stock.
On November 13, 2013, PositiveID entered into a stock purchase agreement with Hudson Bay Master Fund Ltd. and other accredited purchasers (the "SPA") to sell PositiveID's remaining equity position in VeriTeQ, which included 871,753 shares of VeriTeQ's common stock, and the convertible note owed from VeriTeQ to PositiveID, which was convertible into 135,793 shares of VeriTeQ common stock, for total proceeds of $750,000. Pursuant to the Letter Agreement, VeriTeQ will deliver a warrant to PositiveID to purchase 300,000 shares of VeriTeQ common stock at a price of $2.84.
"We are very pleased that we have monetized our investment in VeriTeQ, which is now capitalized and gaining traction in the market," said William J. Caragol, Chairman and CEO of PositiveID. "We believe this sale, combined with our warrant position and future royalties on sales of certain products, will help us continue to focus our attention on the exciting opportunities for our M-BAND and Firefly technologies."
PositiveID has also filed an 8-K with additional information about the SPA and Letter Agreement.