ImageWare Systems, a leader in biometric identification and authentication, today announced it has closed a $2,187,000 senior secured bridge loan, representing an advance against investor commitments to purchase $10,935,000 in Series D Convertible Preferred Stock in a proposed private placement.The bridge loan matures on the six-month anniversary of the loan and bears interest at the rate of 12% per annum. Upon closing of the private placement of Series D Preferred, all principal and accrued interest under the terms of the bridge loan will be converted into shares of Series D Preferred. The bridge loan is secured by all present after-acquired assets of the Company. Proceeds from the bridge loan will be used for general corporate and working capital purposes.Kristin A. Taylor, President and CEO, said, “This strategic financing, anchored by funds and accounts managed by Nantahala Capital Management, LLC, supports ImageWare's plan for substantial growth. We continue our focus of evolving ImageWare into a “biometrics first” identity company. Our biometric solutions enable Governments, Public Services, and Enterprises to transform how they use identity to build trust with their employees, partners, and customers, sell their products, and deliver their services. We revolutionize traditional security models – providing critical identity infrastructure, biometrically verified – to drive effective employee and customer on-boarding, verification, authentication, and access solutions, while giving the customer full control of their data across a wide range of devices and readers. We are targeting not only more public sector projects (including state/local/federal law enforcement and public safety, as well as national identity), but we are also carving out an improved Enterprise offering.”We are grateful to the institutional investors and existing shareholders who believe in our organized new business plan and talented management team,” continued Taylor. “The successful Series D Preferred commitments come on the heels of revenue from an existing contract with the U.S. Department of Veterans Affairs to provide smart badge technology and a new contract for professional services to expand user functionality, valued at $1.2 million.”These developments are in addition to our focus on rationalizing our products and our operating expenses where we have eliminated legacy products that were not generating revenue, and reduced expenses that were weighing the business down. As a result of our renewed focus, we are seeing measurable growth of our law enforcement software and intend to aggressively go after more international markets in the public safety sector in the coming year,” concluded Taylor.Series D Preferred FinancingThe private placement of Series D Preferred is expected to close in approximately thirty days resulting in a minimum of $10 million and a maximum of $15 million, subject to the satisfaction of certain conditions to closing.Organizational RestructuringThe Series D Preferred financing marks the beginning of many proposed pivotal changes intended to increase shareholder value, including:A restructuring of the Company's Board of Directors, leaving only Kristin A. Taylor, President and CEO on the Board, with four new members anticipated to join upon closing of the Series D Preferred financing;A plan to list the Company's Common Stock on the NASDAQ Capital Market; A strategic initiative to monetize the Company's intellectual property with the objective of driving incremental revenue through licensing its deep portfolio of IP.