At last check in after-hours trading, VerifyMe Inc (VRME) shares were rebounding from their loss during regular trading hours, climbing 7.44% to trade at $1.30. The price of VRME shares decreased by -3.97% on Friday to end at $1.21.
What recent movements has VRME made?
This month, VerifyMe (VRME) signed an agreement to offer trademark protection solutions with a global luxury garment manufacturer. On September 23, 2022, VerifyMe and a global luxury garment firm signed a contract for the distribution of dynamic QR codes on its trademark protection labels.
The company’s goods will be able to be scanned and examined as it moves through the supply chain for the garment industry and will be able to be validated at border control points thanks to the order for about 3 million labels with codes. As its second contract in the garment sector this year, VRME proudly announced the contract and order with a famous, well-known international fashion industry leader.
Equity initiatives by VRME:
Through its fully owned subsidiary PeriShip, VerifyMe has redeemed the principal and interest on the promissory note that was issued in conjunction with the acquisition of PeriShip and entered into a new loan facility with PNC Bank, National Association.
- A $1 million revolving line of credit with a one-year term and a September 2023 expiration date is part of the new loan arrangement.
- The revolving line of credit carries interest annually at a rate equal to the sum of the Daily SOFR + 2.85% and has no scheduled principal payments until maturity.
- A $2 million term loan with a duration of four years and a maturity date of September 2026 is also included in the debt arrangement.
- Annual interest on the term loan is calculated as the total of the Daily SOFR + 3.1%.
- The assets of PeriShip and the Company serve as security for the term loan and revolving line of credit, which are both guaranteed by VerifyMe.
- Additionally, on September 22, 2022, PeriShip redeemed 61,000 shares of its common stock from the seller as part of paying off the $2.0 million principal amount promissory note issued to the seller in connection with the PeriShip acquisition for $1.8 million.
- At that point, the guaranty agreement entered into by the Company in connection with that transaction was automatically terminated and has no further effect.
How would this aid VRME’s expansion?
With the help of the new banking arrangement with PNC Bank, VerifyMe (VRME) will have more freedom to carry out its long-term expansion strategy. With the help of this facility, VRME will be able to replace its $2 million debt with a new, reasonable interest-rate obligation that will be paid over the course of four years.