Financing Structure

ICON Identity Solutions Inc.

Name: ICON Identity Solutions, Inc. Website: Investment Status: Previous Investment Amount: $2,000,000 Type of Investment: Subordinated Debt with Warrants In...

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Generally, mezzanine financing (subordinated debt with warrants to purchase common stock) provides a financing alternative to companies with limited senior debt capacity and is substantially less dilutive than venture capital or other sources of equity.

Financing size range of approximately $2 million to $8 million (will syndicate larger financings).

Interest rate on the debt will reflect the credit of the company.

Warrant position (exercisable into common stock) will reflect transaction risk.

Average subordinated debt maturity is five years, generally with some interest only period.

The use of proceeds may be for growth expansions, strategic acquisitions, management or leveraged buyouts, or recapitalizations.