Nxt-ID, Inc. (NASDAQ: $NXTD)
Completes $16.5 million Long-term Debt Refinancing - allowing Company to
proceed with the proposed spin-off of its Fit Pay, Inc Payment Subsidiary
SEBASTIAN, Florida - May 7, 2019 (Investorideas.com
Newswire) 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. Fit Pay and the Fit Pay Payment Platform are the
sole property of Fit Pay, Inc. 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:
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