BOCA RATON, Fla.--(BUSINESS WIRE)--IDI, Inc. (the “Company”) (NYSE MKT: IDI), an information solutions provider, today announced that it has entered into an agreement with an institutional investor to purchase $10.0 million of the Company’s common stock in a registered direct offering and a concurrent private placement of warrants to purchase common stock.
The Company entered into a definitive purchase agreement with the investor pursuant to which the Company agreed to sell 1,280,410 shares of its common stock at a per share price of $7.81 in a registered direct offering. Additionally, in a concurrent private placement, the Company agreed to issue to the investor warrants to purchase 0.5 share of common stock for each share of common stock purchased in the registered direct offering at an exercise price of $10.00 per share, for a total of 640,205 shares of common stock. The warrants will be exercisable six months from the date of issuance and will expire 36 months from the date of issuance. The closing of the registered direct offering and the concurrent private placement is expected to take place on or about July 28, 2015, subject to the satisfaction of customary closing conditions.
“We believe this financing serves to significantly accelerate the long-term development of the Company,” stated Mr. Derek Dubner, Co-CEO of IDI, Inc. “We continue to devote our resources towards the development and implementation of next-generation information solutions to meet the diverse needs of the data fusion market. We recently launched idiBASIC™, our location and verification product, and continue to aggressively move ahead with the build-out of our full investigative solution, idiCORE™, that further leverages our unique linking technology and advanced systems architecture.”
Chardan Capital Markets acted as the exclusive placement agent for this transaction.
A shelf registration statement (File No. 333-205614) relating to the shares of common stock issued in the registered direct offering was filed with and declared effective by the Securities and Exchange Commission (the “SEC”). A prospectus supplement relating to the registered direct offering will be filed by the Company with the SEC. Copies of the prospectus supplement, together with the accompanying prospectus, can be obtained at the SEC’s website at http://www.sec.gov, from request at Chardan Capital Markets, LLC, at 17 State Street, Suite 1600, NY, NY 10004 or from IDI, Inc.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company in the registered direct offering or the concurrent private placement. There shall not be any offer, solicitation of an offer to buy, or sale of securities in any state or jurisdiction in which such an offering, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About IDI, Inc.
IDI, Inc. is an information solutions provider focused on the multi-billion dollar data fusion market. IDI delivers otherwise unattainable insight into the ever-expanding universe of consumer- and business-centric data. Through proprietary linking technology, advanced systems architecture, and a massive data repository, IDI will address the rapidly growing need for actionable intelligence to support the entirety of the risk management industry, for purposes including due diligence, risk assessment, fraud detection and prevention, authentication and verification, and more. Additionally, IDI’s cross-functional core systems and processes are designed to deliver products and solutions to the marketing industry and to enable the public and private sectors to layer our solutions over their unique data sets, providing otherwise unattainable insight.
RELATED LINKS http://ididata.com/
Additional Information
Statements made in this press release include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, but not limited to, the amount and use of proceeds the Company expects to receive from the sale of the shares of common stock in the registered direct offering and the closing of the transactions. Forward-looking statements can be identified by the use of words such as "may," "will," "plan," "should," "expect," "anticipate," "estimate," "continue," or comparable terminology. Such forward-looking statements, including whether this financing significantly accelerates the long-term development of the Company, are inherently subject to certain risks, trends and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate, and involve factors that may cause actual results to differ materially from those projected or suggested. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the heading "Forward-Looking Statements" and "Risk Factors" in the Company's Annual Reports on Form 10-K, as may be supplemented or amended by the Company's Quarterly Reports on Form 10-Q. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.