SEBASTIAN, Florida,
May 7, 2019 /PRNewswire/ -- Nxt-ID,
Inc. (NASDAQ: NXTD) (the "Company") today announced the
closing of a $16.5 million senior
secured term loan (the "Term Loan"). The Company will use the
proceeds from the Term Loan to refinance its existing loan facility
and to pay other costs associated with the refinancing.
Key features of the Term Loan include:
- Interest rate of LIBOR + 11.00%;
- Maturity date of three years after closing, and
- Three-year term with minimum principal payments amortized over
96-months.
The refinancing also removes a covenant of the existing debt
facility and allows the Company to proceed with the proposed
spin-off of its Fit Pay, Inc. subsidiary and its payments,
authentication, credential management business and other assets
into a new company called PartX, Inc. ("PartX").
"We are very pleased to have completed this transaction and
refinanced our debt facility," said Nxt-ID Chief Executive Officer
Gino Pereira. "It enables us to move
forward with the planned spin-off of our payments business, which
we believe will increase overall shareholders value."
On April 29, 2019, the Nxt-ID
filed a Form 10 Registration Statement with the Securities and
Exchange Commission (SEC) to spin off PartX into an independent
company and distribute its shares to Nxt-ID shareholders.
The Form 10 Registration Statement is used to register a
class of securities that are intended to be traded publicly and is
subject to review and approval of the SEC.
Following the successful completion of the spin-off
transaction, which the Company believes will qualify as a
tax-free distribution, Nxt-ID shareholders who own
shares on the spin-off Record Date will receive a pro-rata
distribution of shares PartX and will own shares of both Nxt-ID and
PartX. The Record Date for the distribution has not yet been
established, pending review by the SEC of the Form 10 Registration
Statement.
The Company believes the spin-off of PartX will provide a number
of benefits, including: (1) enhanced strategic and management
focus on the core business and growth of each company;
(2) more efficient capital allocation, direct access to
capital and expanded growth opportunities for each company;
(3) improved investor understanding of the business strategy
and operating results of each company; and (4) enhanced
investor choice by offering investment opportunities in separate
entities.
Maxim Group, LLC was retained by the Company as a finder in
connection with the Term Loan.
About Nxt-ID, Inc.
Nxt-ID, Inc. (NASDAQ: NXTD) provides a comprehensive
platform of technology products and services that enable the
Internet of Things (IoT). With extensive experience in access
control, biometric and behavior-metric identity verification,
security and privacy, encryption and data protection, payments,
miniaturization and sensor technologies, Nxt-ID develops and
markets groundbreaking solutions for healthcare, payment and IoT
applications.
Nxt-ID includes three mobile and IoT-related subsidiaries:
LogicMark, LLC, a manufacturer and distributor of non-monitored and
monitored personal emergency response systems ("PERS") sold through
dealers/distributors and the United States Department of Veterans
Affairs; Fit Pay, Inc., a proprietary technology platform that
delivers end-to-end solutions to device manufacturers for
contactless payment capabilities, credential management,
authentication and other secure services within the IoT ecosystem,
and 3D-ID LLC, which is engaged in biometric identification and
authentication. Learn more about Nxt-ID at www.nxt-id.com. For
Nxt-ID Inc. corporate information contact: info@nxt-id.com
Forward-Looking Statements for Nxt-ID: This press release
contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements reflect management's current expectations, as of the
date of this press release, and involve certain risks and
uncertainties. Forward-looking statements include statements herein
with respect to the successful execution of the Company's business
strategy. The Company's actual results could differ materially from
those anticipated in these forward-looking statements as a result
of various factors. Such risks and uncertainties include, among
other things, our ability to establish and maintain the proprietary
nature of our technology through the patent process, as well as our
ability to possibly license from others patents and patent
applications necessary to develop products; the availability of
financing; the Company's ability to implement its long range
business plan for various applications of its technology; the
Company's ability to enter into agreements with any necessary
marketing and/or distribution partners; the impact of competition,
the obtaining and maintenance of any necessary regulatory
clearances applicable to applications of the Company's technology;
and management of growth and other risks and uncertainties that may
be detailed from time to time in the Company's reports filed with
the Securities and Exchange Commission.
In addition to the operational uncertainties identified above,
there are a number of important factors that could cause the
Company's actual results to differ materially from those indicated
by such forward-looking statements, including whether the planned
spin-off of the payments business is completed, as expected or at
all, and the timing of any such spin-off; whether the conditions to
the spin-off can be satisfied, including the achievement of a
tax-free distribution; whether the operational, marketing and
strategic benefits of the spin-off can be achieved; whether the
costs and expenses of the spin-off can be controlled within
expectations; and general market and economic conditions. The
foregoing sets forth many, but not all, of the factors that could
cause actual results to differ from our expectations in any
forward-looking statement. Investors should consider this
cautionary statement, as well as the risk factors identified in our
periodic reports filed with the SEC, when evaluating our
forward-looking statements.
Media Contacts:
Chris Orlando
chris.orlando@nxt-id.com
+1-760-468-7273
D. Van Zant
+1-800-665-0411
press@nxt-id.com
.
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SOURCE NXT-ID, Inc.
