DELRAY BEACH, Fla., Nov. 14, 2013 (GLOBE NEWSWIRE) -- PositiveID Corporation ("PositiveID") (OTCQB:PSID), 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.
About PositiveID Corporation
PositiveID Corporation is an emerging growth company and developer of biological detection systems for America's homeland defense industry as well as rapid biological testing. PositiveID is focused on the development of microfluidic systems for the automated preparation of and performance of biological assays in order to detect biological threats at high-value locations, as well as analyze samples in a medical environment. For more information on PositiveID, please visit http://www.PositiveIDCorp.com.
Statements about PositiveID's future expectations, including, without limitation, the likelihood that PositiveID will receive a warrant to purchase 300,000 shares of VeriTeQ common stock at a price of $2.84; the likelihood that this sale, combined with PositiveID's warrant position and future royalties on sales of certain products, will help it continue to focus its attention on the exciting opportunities for its M-BAND and Firefly technologies; constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and PositiveID's actual results could differ materially from expected results. Additional information about these and other factors that could affect the Company's business is set forth in the Company's various filings with the Securities and Exchange Commission, including those set forth in the Company's 10-K filed on April 16, 2013, and 10-Q filed on May 20, 2013, and August 14, 2013, under the caption "Risk Factors." The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law.