$IWSY Imageware Biometrics + Gov Contract + Financing + Upcoming Surprise PART 1 : pennystocks

Imageware Systems is a technology company that is older than most of you guys. It’s been around since 1987 and headquartered in San Diego, CA. They provide biometric authentication solutions. And the managed big governments contracts in the past. https://www.iwsinc.com/

  • Company: Imageware Systems

  • Industry: Cyber Security / Biometric Authentication

  • Flagship Product: IWS Biometric Engine® (BE)

  • Ticker: IWSY (OTCQB)

  • Share Price: $0.027

  • Market Capitalization: $9M

  • Float: 347M

  • % Held by institutions: over 70%

  • % Held by Public/Other: tba

  • Number of worldwide patents : 24 and 16 pending

I have been holding this stock since last February.

I bought it because

  1. Biometrics is increasingly important in the Covid/Post-Covid era and it’s expanding exponentially

  2. Big funds invested in this company

  3. it has government contracts and patents at hand

  4. it’s no-joke OTC company, it has been around more than 3 decades

But with the great OTC meltdown the share price dropped below my average and I went on to full wait mode. It shifted from a short term investment into a mid to long term investment.

Even though I have a lot of hopes from this company the balance sheet was concerning me. They were getting short on cash. They did some offerings to raise cash at the end of 2020 and in 2021. As a result the OS increased to 347 million from 200 million.

But since October dilution stopped and couple of announcements have been made.

They closed the largest Saas contract of the company history beating other biometrics companies.

$1.5 million annual might not sound too much but this is just for one county in the USA. There are 3006 counties in the USA alone. If you consider that this company has a market cap of $9 million this is an important gateway deal to the next ones.

The next annoucement was about a birgde financing that the company close for 2.5 million.

This is a short term loan and it will be paid next january. It’s been given by the biggest financial investor of this company, Nantahala Capital (a 7 billion$ investment firm) for this period.
We assume(we a bunch of investors here and on stocktwits) that there will be an important deal soon. It’s either new Saas contracts or a buy out. Otherwise the largest investor(45% ownership) would not put this money or the management would not try to get under debt instead of doing an offering and diluting everyone.

Note: I’ll continue this post in couple of hours I just wanted to put it out for you to check it out now as the price and volume has been rising for a week

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