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White Plains--Fingermatrix Inc. may be losing its grip on the biometric technology market, according to some industry observers, but the company is implementing changes to raise capital and cut costs.
The White Plains-based manufacturer of fingerprint-recognition computer systems for government and security agencies recently proposed a restructuring plan and appointed a new president.
In March, Fingermatrix filed a preliminary proxy statement with the Securities and Exchange Commission for a meeting of stockholders to consider and vote upon a proposed recapitalization and change in corporate name.
According to Scott G. Schiller, director of investor relations, the restructuring is required to raise additional capital. "We've been in development for 17 years, and now we are ready to go forward. We need to restructure and take advantage of our product. We need to raise caoital to put ourselves in a position to be profitable."
If approved, the recapitalization plan would reduce the outstanding common stock, on the basis of one new share for each 20 slares outstanding; reduce the common stock par value from 2 cents to 1 cent per share; and reduce the authorized common stock from 40 million shares to 15 million.
Schiller said the name change to FMX Corp. is necessary because the current name is too limited and restrictive. "FMX is broader. We're not just in the 'finger' business. After so many years in research and development we figured 'let's get on the road.'"
The board also approved a stock purchase agreement in which company chief executive Michael Schiller acquired about 43 percent of the company's total issued and outstanding common stock...