Sense Holdings Completes $2.45 Million Private Placement Financing; Proceeds to Accelerate Development of Handheld Explosives Detector and Other Strategic Initiatives in Homeland Security Industry
The private placement, completed on March 7, 2006, involved approximately 11 million shares of common stock at a share price of $0.22, with 50% warrant coverage (approximately 5.5 million warrants) at an exercise price of $0.35. Through the financing, the Company paid off $527,000 in debt, and converted $142,500 of debt into common shares priced at $0.22.
“We are gratified to have the opportunity to support Sense Holdings to help them realize the potential of its technologies in the homeland security marketplace”
The financing will provide Sense Holdings sufficient working capital to fund and accelerate a range of ongoing product sales and development programs, said Dore Perler, CEO of Sense Holdings. Among the Company's current R&D initiatives is a joint program with the Oak Ridge National Laboratory, under a Cooperative Research and Development Agreement (CRADA). Sense and Oak Ridge National Laboratory are engaged in development of a line of handheld explosive detection devices, based on Sense's proprietary microelectronics sensor technology. The financing also enabled the Company to eliminate the remainder of its existing debt.
"We believe this financing will enable Sense to substantially accelerate progress toward our key strategic initiatives as a technology-driven homeland security innovator," said Dore Perler, CEO of Sense Holdings. "Sense is now sufficiently funded to significantly accelerate the expansion of our intellectual property portfolio and the development of new products for the global homeland security industry. Through this financing, we will be able to continue our programs to transform the advanced technologies we already own into valuable and useful products to combat the threat of terrorism around the world to help protect the public."
Sense is developing its proprietary advanced Micro Electromechanical Sensor (MEMS) technology to create a line of next-generation handheld explosive detectors for sale to both private and governmental markets, to customers in the U.S. and internationally. The Company intends to position its bomb detection devices as low-cost, multi-use, portable units that security and law enforcement personnel can use to screen for concealed explosives, narcotics and chemical and biological threats. Key technological and competitive advantages of our products are intended to include low cost, extremely high sensitivity and real-time operation while maintaining an almost complete immunity to false alarms.
Sense is also a technology innovator in the field of biometric security products for commercial and governmental applications, and has already designed and sold numerous systems to major corporate customers worldwide. Biometrics solutions use human fingerprints, iris scan, facial recognition and other methods to identify individuals and ensure security.
Joseph Stevens & Company, a full service Wall Street investment banking firm, acted as placement agent for the financing. "We are gratified to have the opportunity to support Sense Holdings to help them realize the potential of its technologies in the homeland security marketplace," said Joseph Sorbara, CEO of Joseph Stevens & Company. "We believe Sense Holdings presents significant promise of growth and value, and is led by a management team that has the experience and drive to accomplish their business and investment goals."
Sense is an established developer of advanced proprietary solutions for fast-growing segments of the global Homeland Security industry, including biometric authentication and identification technologies and handheld explosives sensing devices for security screening applications. Among the Company's current customers are the U.S. Army and the U.S. Department of Corrections, in addition to several of the world's largest multinational corporations.
About Sense Holdings, Inc.
Sense Holdings is a developer of next-generation biometric identification systems, and nanotechnology-based micro-sensor technologies for government, military and commercial security marketplaces. The Company's wholly-owned subsidiary, Sense Technologies, deploys proprietary biometric technology based on advanced fingerprint technology and biometric integration to create a range of solutions for prisoner identification, time and attendance, access control applications and other markets. Sense's major customers include the U.S. Army, the U.S. Department of Corrections, American Airlines and others. A second wholly-owned subsidiary, MSTI, is an emerging nanotechnology-based explosives detection technology development division developing a pipeline of advanced bomb detection technologies, including a prototype handheld explosive detection wand device for Homeland Security applications in airports and other security checkpoints. This hand-held detection alternative is designed to be a cost-effective solution with extremely high detection sensitivity and real-time operability. Currently, a proof-of-principle prototype is undergoing further research and development at the U.S. Oak Ridge National Laboratory. For investor-specific information about Sense Holdings, including recent share price data and news announcements, please visit http://www.trilogy-capital.com/tcp/sense. To view or download an Investor Fact Sheet about the Company, please visit http://www.trilogy-capital.com/tcp/sense/factsheet.html. Sense is also listed on the Frankfurt Stock Exchange under the ticker symbol, OUP. For other information, please visit http://www.senseme.com.
This presentation includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products and services in the marketplace, the ability of the Company to develop effective new products and receive governmental approvals of such products, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's filings with the U.S. Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.