Sequans Communications S.A. Announces Closing of Over-Allotment Option Related to Underwritten Public Secondary Offering of A...
December 14 2020 - 10:10AM
Business Wire
Sequans Communications S.A. (NYSE: SQNS), (“Sequans” or the
“Company”), a leading developer and provider of 5G and 4G chips and
modules for IoT devices, today announced that the underwriter of
the previously announced public secondary offering of American
Depositary Shares (the “ADSs”) by Nokomis Capital Master Fund, L.P.
(“Nokomis”) has exercised its over-allotment option (the “Option”)
in full to purchase 379,494 additional ADSs for gross proceeds to
Sequans of $2.09 million. Each ADS represents four ordinary shares
of the Company, nominal value €0.02 per share The Option exercise
closed on December 14, 2020. After the completion of the
underwritten public secondary offering, including the
over-allotment option, Sequans’ current total ADSs outstanding are
33,239,788.
The 2,529,961 ADSs offered by Nokomis in the secondary offering,
which closed on December 10, 2020, were issued pursuant the
conversion of $12.4 million in principal and accrued paid-in-kind
interest of Sequans’ convertible notes, including one extra year of
paid-in-kind interest, an incentive for converting prior to April
2022, as provided in the March 2020 amendments to the note
agreements. After the closing of this secondary offering, Nokomis
beneficially owns 9.9% of Sequans outstanding ADSs as a result of
outstanding shares that it currently owns and convertible notes it
continues to hold with conversion prices ranging from $4.12 to
$6.80, which takes into account that the notes contain a blocker
provision prohibiting ownership above 9.9%.
“We were pleased to facilitate this secondary offering,” said
Georges Karam, CEO of Sequans. “We reduced our debt and
strengthened our balance sheet as a result of the conversion of the
notes issued in April 2016 and May 2019 ahead of maturity.”
Pursuant to an underwriting agreement dated December 7, 2020, B.
Riley Securities, Inc. acted as the underwriter of the secondary
offering. For more information regarding the offering, please refer
to the prospectus supplement filed on December 8, 2020. The ADSs
were offered pursuant to a shelf registration statement on Form F-3
(File No. 333-250122), including a base prospectus, previously
filed with, and subsequently declared effective, by the SEC on
November 24, 2020.
About Sequans Communications
Sequans Communications S.A. (NYSE: SQNS) is a leading developer
and provider of 5G and 4G chips and modules for IoT devices. For
5G/4G massive IoT applications, Sequans provides a comprehensive
product portfolio based on its flagship Monarch LTE-M/NB-IoT and
Calliope Cat 1 chip platforms, featuring industry-leading low power
consumption, a large set of integrated functionalities, and global
deployment capability. For 5G/4G broadband and critical IoT
applications, Sequans offers a product portfolio based on its
Cassiopeia 4G Cat 4/Cat 6 and high-end Taurus 5G chip platforms,
optimized for low-cost residential, enterprise, and industrial
applications. Founded in 2003, Sequans is based in Paris, France
with additional offices in the United States, United Kingdom,
Finland, Israel, Hong Kong, Singapore, Taiwan, South Korea, and
China.
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version on businesswire.com: https://www.businesswire.com/news/home/20201214005552/en/
Investor Contacts:
Media Relations: Kimberly Tassin, +1.425.736.0569,
Kimberly@sequans.com Investor Relations: Claudia Gatlin,
+1.212.830.9080, Claudia@sequans.com
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