authID Announces Pricing of Approximately $2,100,000 Million Registered Direct Offering

Rhea-AI Summary

authID (NASDAQ: AUID) has announced a registered direct offering of approximately 373,060 shares of common stock at $5.60 per share, aiming to raise gross proceeds of approximately $2.1 million. The offering, co-placed by Dominari Securities LLC and Madison Global Partners, LLC, is expected to close around May 7, 2025. The company plans to use the net proceeds for working capital and general corporate purposes. The shares are being offered through a shelf registration statement (Registration No. 333-283580) that was declared effective by the SEC on December 13, 2024.

Positive

• Raises $2.1 million to strengthen working capital position

Negative

• Share dilution for existing stockholders through new share issuance

Insights

Financial Analyst

authID raises $2.1M through direct stock offering at $5.60/share, providing near-term working capital with some shareholder dilution.

authID Inc. (NASDAQ: AUID) has secured approximately $2.1 million in financing through a registered direct offering of 373,060 shares of common stock priced at $5.60 per share. This transaction represents a targeted capital raise directly to specific investors rather than a broader public offering.

The structure of this financing - a registered direct offering - typically allows companies to raise capital more efficiently with potentially less market impact than traditional follow-on offerings. For context, registered direct offerings are sold only to select institutional investors and are executed off an existing shelf registration statement, which authID had established in December 2024.

Two placement agents facilitated this transaction: Dominari Securities LLC and Madison Global Partners, LLC. The use of dual placement agents for a relatively modest offering size might reflect a strategy to leverage multiple distribution networks.

The $2.1 million raised is explicitly earmarked for "working capital and general corporate purposes" according to the release. This broad designation typically indicates funds will support ongoing operations rather than specific strategic initiatives or acquisitions.

This offering will result in dilution for existing shareholders, as the additional 373,060 shares will increase the total outstanding share count. While the exact dilution percentage cannot be calculated without knowing the company's current shares outstanding, this represents a fundamental consideration for existing investors.

The transaction is expected to close promptly on May 7, 2025, indicating the deal terms have been finalized and agreed upon by the participating investors. The timing suggests an efficient execution of the company's capital raising strategy using their previously established shelf registration.

DENVER, May 06, 2025 (GLOBE NEWSWIRE) -- authID Inc. (NASDAQ: AUID) (“authID” or the “Company”), a leading provider of biometric identity verification and authentication solutions, today announced it has entered into a definitive agreement with investors to sell approximately 373,060 shares of its common stock (the “Shares”), pursuant to a registered direct offering (the “Registered Direct Offering”). The purchase price for one Share will be $5.60. The aggregate gross proceeds from the Offering are expected to be approximately $2,100,000 million before deducting placement agent fees and other offering expenses.

The closing of the Registered Direct Offering is expected to occur on or about May 7, 2025, subject to the satisfaction of customary closing conditions.

Dominari Securities LLC and Madison Global Partners, LLC, acted as Co-Placement Agents for the offering.

authID intends to use the net proceeds for working capital and general corporate purposes.

The Shares offered in the Registered Direct Offering are being offered by the Company pursuant to a shelf registration statement (Registration No. 333-283580) filed with the Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on December 13, 2024. The offering is being made only by means of a prospectus supplement and accompanying prospectus. A prospectus supplement and accompanying prospectus relating to the Registered Direct Offering will be filed with the SEC and, when available, may be obtained for free on the SEC’s website located at http://www.sec.gov. Electronic copies of the final prospectus supplement and accompanying prospectus relating to the Registered Direct offering may be obtained by contacting Madison Global Partners, LLC, Attention: David S. Kaplan, 350 Motor Parkway, Suite 205, Hauppauge, NY 11788, by email at info@madisonglobalpartners.com, or by telephone at (646) 690-0330.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About authID Inc.

authID (Nasdaq: AUID) ensures enterprises “Know Who’s Behind the Device™” for every customer or employee login and transaction through its easy-to-integrate, patented biometric identity platform. authID powers biometric identity proofing in 700ms, biometric authentication in 25ms, and account recovery with a fast, accurate, user-friendly experience. With our ground-breaking PrivacyKey Solution, authID provides a 1-to-1-billion false match rate, while storing no biometric data. authID stops fraud at onboarding, blocks deepfakes, prevents account takeover, and eliminates password risks and costs, through the fastest, most frictionless, and most accurate user identity experience demanded by today’s digital ecosystem.

For further information please visit authid.ai

Media Contacts

NextTech Communications
Walter Fowler
1-631-334-3864
wfowler@nexttechcomms.com

Investor Relations Contacts
Investor-Relations@authid.ai

Cautionary Statement Regarding Forward-Looking Statements:

This Press Release includes “forward-looking statements.” All statements other than statements of historical facts included herein are forward-looking statements. Actual results may vary materially from the results anticipated by these forward-looking statements as a result of a variety of risk factors. See the Company’s Annual Report on Form 10-K for the Fiscal Year ended December 31, 2024, filed at www.sec.gov and other documents filed with the SEC for risk factors which investors should consider. These forward-looking statements speak only as to the date of this release and cannot be relied upon as a guide to future performance. authID expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this release to reflect any changes in its expectations with regard thereto or any change in events, conditions, or circumstances on which any statement is based.

FAQ

What is the price per share for AUID's registered direct offering in May 2025?

authID (AUID) priced its registered direct offering at $5.60 per share.

How many shares is authID (AUID) offering in its May 2025 registered direct offering?

authID is offering approximately 373,060 shares of its common stock.

How much money does authID (AUID) expect to raise from its May 2025 offering?

authID expects to raise approximately $2.1 million in gross proceeds before deducting placement agent fees and other offering expenses.

What will authID (AUID) use the proceeds from its May 2025 offering for?

authID intends to use the net proceeds for working capital and general corporate purposes.

When is the expected closing date for AUID's May 2025 registered direct offering?

The offering is expected to close on or about May 7, 2025, subject to customary closing conditions.