Information Analysis Enters into Definitive Agreements for Capital Raise and Equity Line of Credit

On December 20, 2024, Information Analysis (OTCMKTS:IAIC) finalized significant agreements to raise capital and establish an Equity Line of Credit (ELOC). The company, a Delaware corporation, entered into a Securities Purchase Agreement (SPA) with Helena Special Opportunities LLC, an affiliate of Helena Partners Inc., facilitating gross proceeds of up to USD$2.4 million through a private placement. This transaction includes the issuance of a convertible promissory note and common stock purchase warrant, with sustained funding to Information Analysis totaling USD$2.04 million after relevant expenses.

Moreover, Information Analysis and its subsidiary secured a Security Agreement with Helena, granting a security interest in assets to support obligations under the Note. Additionally, the parties entered into a Registration Rights Agreement, affirming the registration of Conversion Shares and Warrant Shares. The company committed to promptly file a registration statement with the Securities and Exchange Commission (SEC) within 60 days following the agreement date, in accordance with the RRA provisions.

Simultaneously, Information Analysis inked an ELOC Agreement with Arena Business Solutions Global SPC II, Ltd, allowing the purchase of up to USD$10 million in Common Stock upon meeting specified conditions. Arena will acquire ELOC Shares at 88% of the Volume Weighted Average Price (VWAP) of the Common Stock during the trading day following the Advance Notice, with an initial Commitment Fee of $300,000.

The company aims to optimize its investment portfolio by repositioning certain bonds to elevate financial performance. Despite anticipating an accounting loss in the short term, this strategic move is projected to enhance income generation in the long run. Furthermore, Joseph Gunnar & Co., LLC serves as the exclusive placement agent for the transaction tied to the ELOC Agreement.

The agreements detailed above were filed with corresponding Exhibits as part of Information Analysis’ Form 8-K submission, illustrating a strategic financial approach. These actions underline the company’s efforts to fortify its financial standing, support growth initiatives, and boost shareholder value. The SEC filing by Information Analysis signals a strategic shift towards strengthening its financial foundation and seizing growth opportunities.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Information Analysis’s 8K filing here.

Information Analysis Company Profile

Information Analysis, Inc provides information technology services. The firm engages in the business of modernizing client information systems, developing and maintaining information technology systems, and performing consulting services to government and commercial organizations. It specializes in legacy systems modernization, ebusiness solutions, enterprise portals, system migration and re-hosting services, and enterprise application integration.