VerifyMe raises $8.75m more for anti-counterfeit platform

VerifyMe has raised another $8.75 million in funding, just a few months after closing a $10m offering and up-listing to the Nasdaq.

The new round stems from an agreement with underwriter Maxim Group, which has agreed to buy an allocation of 1.65m shares at a price of $5.30 per share, with a 45-day option on another 247,500 shares. Maxim started coverage of VerifyMe in December.

The Rochester, New York-based company said in an SEC filing that the net proceeds of the offering will be used to expand its sales force, marketing and business development, as well as for potential acquisitions, R&D and general working capital.

VerifyMe specialises in brand protection features for anti-counterfeit, authentication, serialization, and track and trace for labels, packaging and products based on covert luminescent pigment RainbowSecure, first launched in 2018.

The platform combines an invisible ink with a proprietary laser-based VerifyMe Beeper device to enable counterfeit products to be detected in the field.

VerifyMe claims the combination of RainbowSecure with its VeriPAS software is “the only invisible covert serialization and authentication solution deployed through variable digital printing on HP Indigo...printing systems with a smartphone tracking and authentication system.”

The company reported revenues of almost $101,000 in the third quarter of 2020, up 79 per cent on the prior year and a third up on second-quarter sales.