Identive Secures $2 Million Investment, Additional $18 Million Funding Commitment from Lincoln Park Capital

Identive Group, Inc. announced that it has entered into a $20 million common stock purchase agreement with Lincoln Park Capital Fund, LLC (LPC), a Chicago-based institutional investor. Following its execution of the agreement, LPC will purchase $2 million in common stock from Identive at a purchase price of $1.14 per share, the closing price on April 15, 2013. Over the next three years, Identive has the right to sell up to an additional $18 million of its common stock to LPC under terms set forth in the agreement.

Proceeds from LPC’s funding will be used to support working capital requirements and for general corporate purposes, including ongoing investment in products and technologies to support the Company’s growth strategy.

Commenting on the new financing, Identive’s chief executive officer, Ayman S. Ashour said, “The technology and market investments we have made over the past three years are now driving strong growth in emerging areas of our business, including NFC, mobility and cloud solutions, and fueling renewed momentum for our ID products, including both readers and transponders. This additional source of financing strengthens our balance sheet and allows us to maintain adequate levels of investment to continue to build on the progress we have made. To minimize dilution for our current investors, we have opted for an approach that allows us to access capital incrementally and as needed over a long period.”

Under the terms of the agreement, there are no upper limits to the price that LPC may pay to purchase Identive’s common stock. Following the initial sale of its shares, Identive will control the timing of any future sales and the amount of shares to be sold. LPC has no right to require any sales and is obligated to purchase common stock as directed by Identive.

“We are very pleased to be entering into this agreement with Identive,” Jonathan Cope, a founder and managing member of LPC, said. “We at Lincoln Park are impressed by the company’s technology portfolio and its strong presence across the secure identification industry.”