Identive Group Raises $10.35 Million in Private Placement to Support Continuing Growth

Identive Group, Inc., a provider of products, services and solutions for the security, identification and RFID industries, announced that it has entered into subscription agreements for the private placement of up to 4,097,624 shares of its common stock to accredited and other qualified investors in the U.S. and internationally. The anticipated gross proceeds will be approximately $10.35 million, or $2.525 per share, a premium of $0.125 over the NASDAQ closing price of the company’s shares on Nov. 12, 2010.

The company also issued to the investors warrants to purchase up to an additional 4,097,624 shares of common stock, exercisable for a period of five years, with a cash exercise price of $2.65, a premium of $0.25 per share over the NASDAQ closing price on Nov. 12, 2010.

If exercised in full, the warrants would bring in an additional $10.86 million in cash to the Company. The proceeds will be used to fund future acquisition and growth activity and for general corporate purposes.

Ayman S. Ashour, chairman and CEO of Identive Group, commented, “We are pleased that our vision of building the signature company in secure ID is receiving more traction with the financial community. We remain firm in our philosophy to pursue growth opportunities that are accretive to our shareholders, whether we are paying in cash or shares. It was very important for us to raise additional cash at terms attractive to Identive and to Identive shareholders and we believe that in the current market these terms are very good indeed. We are proud that we have been able to gain this strong endorsement from existing and new investors.”

“The ID management and RFID markets in general are experiencing strong growth, and our industry remains highly fragmented, which creates the opportunity for further consolidation while we continue our strong organic growth,” Ashour added.

The transaction is expected to close on or about Nov. 18, 2010.