Fingerprint device and software provider BIO-key has reported that it has raised $8.45 million through the issuance of shares of its Series A-1 Convertible Preferred Stock.The preferred shares are convertible into common stock at a conversion price of $0.30 per share and were issued to a Hong Kong based security technology investor.Under the terms of the preferred shares, the investor has the right to appoint one director to BIO-key's Board.Dividends on the preferred shares accrue at 6% per annum and are payable quarterly in cash for two years and thereafter, are payable, at the option of the Company, in cash or in kind through the issuance of additional shares of common stock.Net proceeds to BIO-key after expenses were approximately $8.4 million and will be used primarily to fund operations and expand the Company's sales, marketing and product development efforts.Mike DePasquale, Chairman & CEO of BIO-key, commented, “Today's strategic investment is a transformative event for BIO-key as it substantially strengthens our financial position to aggressively pursue sales and business development opportunities on a global basis. We also plan to enhance our operations, management and finance teams and processes to support future growth.”With a solid working capital base, we are now able to fund the completion of software development for strong support of Apple's iOS 'Touch ID' and Samsung's Android smartphone technology while also enhancing the capabilities of other BIO-key solutions and developing new turnkey hardware/software products.”The investment was made in connection with BIO-key's previously announced memorandum of understanding regarding a potential equity investment in BIO-key. The Company announced that it remains in discussions regarding this potential investment and a license agreement for development software and source code for point-to-point identification using biometric encryption and decryption technologies controlled by affiliates of the potential investor. The terms of the proposed license agreement contemplate the placement of approximately $11 million of convertible preferred shares, the entire proceeds of which would be used to fund the technology license agreement. There can be no assurance that the proposed technology license or investment transaction will be completed on terms acceptable to the Company, if at all.DePasquale added, “Clearly the future lies in online and mobile payments and secure data and information access, yet the establishment of a robust security infrastructure has substantially lagged the proliferation of biometric-enabled devices. With today's investment, we are putting in place the capital and expanded sales reach required to accelerate the commercialization of our industry-leading biometric software, with a focus on delivering full mobile and enterprise solutions.”BIO-key also recently commenced a presence in Asia to support its regional business development efforts. These efforts have included creating a subsidiary in Hong Kong and opening an office in the People's Republic of China that will be staffed by small teams.BIO-key will be exhibiting at connect:ID 2016, 14-16 March, Washington DC. connect:ID is an international conference and exhibition that focuses on all aspects of identity technologies and the opportunities for their management in both the physical and digital worlds.