ABI to absorb EIDT in merger
KENNEWICK, Wash. - Advanced Biometrics Inc. announced in October that it again would move toward a share exchange agreement nulled earlier this year with Electronic Identification Inc.
As a result of the agreement, EIDT and ABI will merge under the name Advanced Biometrics Technology Corp.
ABI president Bob Papke said the deal could be completed by January 2003. "We are making some provisions to make sure this transaction goes through," Papke said.
Pending EIDT shareholder approval, ABI will absorb EIDT debt while ABI shareholders benefit from a reverse split of EIDT stock and a public presence in the stock market.
Negotiations between the two companies resumed two months prior to the Oct. 28 announcement, said Papke. The initial pact reached in the spring of 2002 was later recalled when shareholders of EIDT, a public entity on the New York Stock Exchange, were unable to vote on the agreement.
As developers of electronic identification systems, EIDT has tallied operating expenses totaling nearly $15 million since opening its doors in 1992, according to filings with the Securities and Exchange Commission. By Sept. 30, 2001, EIDT had a working capital deficiency of $540,220, the company reported in April.
Papke said even though EIDT has been operating in the red, it will benefit consumers and ABI to take the company under the Advanced Biometrics Technology Corp. umbrella.
"EIDT has done a good job surviving in this marketplace," Papke said. "They have some great relationships, especially internationally. They bring a lot to the party."
Papke said ABI innovations would be augmented by EIDT technology. ABI holds the only patent for a biometrics authentication system that uses infrared images taken from the vascular system of the hand for identification. The non-invasive technique, known as LiveGrip, could make a particularly good combination with EIDT Smart Cards, Papke said. The cards currently use images of fingerprints to identify clients.
"We have a winning combination," Papke said.
Vancouver, B.C.-based EIDT is slotted to move its headquarters to Kennewick, Wash. Each company employs 12 people, Papke said. For now, the only personnel changes would occur when EIDT directors resign their posts, a stipulation of the share exchange.