Captivision Strengthens Financial Position
July 23 2024 - 8:00AM
Captivision Inc. (“Captivision” or the “Company”) (NASDAQ: CAPT), a
pioneer and manufacturer of architectural media glass, today
announced strategic improvements to its balance sheet, resulting in
a strengthening of its financial position.
Debt-to-Equity ConversionThe
Company entered into contribution agreements (the “Contribution
Agreements”) with certain creditors (the “Contributors”) of its
wholly owned subsidiary, Captivision Korea Inc. (“Captivision
Korea”), pursuant to which the Contributors agreed to contribute
the respective outstanding balances remaining under various debt
agreements with Captivision Korea (the “Contributed Debt”) to the
Company in exchange for the issuance by the Company of its ordinary
shares in a debt to equity conversion transaction (the
“Conversion”).
Pursuant to the Conversion, an aggregate of KRW
5,791,867,301 (approximately $4.2 million as of the exchange rate
calculation date) of Contributed Debt was contributed to the
Company in exchange for the issuance of an aggregate of 1,414,895
shares at a conversion price per share equal to $3.00.
Issuance of BondsCaptivision
Korea entered into a Private Bonds Subscription Agreement (the
“Subscription Agreement”) with certain investors (each a
“Subscriber” and collectively, the “Subscribers”), pursuant to
which the Subscribers agreed to subscribe to and Captivision Korea
agreed to issue an aggregate amount of KRW 3,100,000,000
(approximately $2.2 million) of unregistered private placement
bonds (the “Bonds”).
“We appreciate our investors’ continued support
as we position Captivision for ongoing success,” said Gary
Garrabrant, Chairman and CEO of Captivision. “Equitizing
our outstanding debt, in coordination with the issuance of bonds
and overall business development efforts, strengthens our financial
position at a time when we believe the Company has a number of
important business catalysts and milestones ahead.”
About CaptivisionCaptivision is
the inventor and manufacturer of the world’s first media glass
combining IT building material and architectural glass. The product
has a boundless array of applications including entertainment
media, information media, cultural and artistic content as well as
marketing use cases. Captivision can transform any glass façade
into a transparent media screen with real time live stream
capability.
Captivision’s media glass and solutions have
been implemented in hundreds of locations globally across sports
stadiums, entertainment venues, casinos and hotels, convention
centers, office and retail properties and airports. Learn more at
http://www.captivision.com/.
Cautionary Note Regarding
Forward-Looking StatementsThis press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, as amended. These
forward-looking statements include, without limitation, statements
relating to expectations for future financial performance, business
strategies or expectations for the Company’s respective businesses.
These statements are based on the beliefs and assumptions of the
management of the Company. Although the Company believes that its
plans, intentions and expectations reflected in or suggested by
these forward-looking statements are reasonable, it cannot assure
you that it will achieve or realize these plans, intentions or
expectations. These statements constitute projections, forecasts
and forward-looking statements, and are not guarantees of
performance. Such statements can be identified by the fact that
they do not relate strictly to historical or current facts. When
used in this press release, words such as “believe”, “can”,
“continue”, “expect”, “forecast”, “may”, “plan”, “project”,
“should”, “will” or the negative of such terms, and similar
expressions, may identify forward-looking statements, but the
absence of these words does not mean that a statement is not
forward-looking.
The risks and uncertainties include, but are not
limited to: (1) the ability to raise financing in the future and to
comply with restrictive covenants related to indebtedness; (2) the
ability to realize the benefits expected from the business
combination and the Company’s strategic direction; (3) the
significant market adoption, demand and opportunities in the
construction and digital out of home media industries for the
Company’s products; (4) the ability to maintain the listing of the
Company’s ordinary shares and warrants on Nasdaq; (5) the ability
of the Company to remain competitive in the fourth generation
architectural media glass industry in the face of future
technological innovations; (6) the ability of the Company to
execute its international expansion strategy; (7) the ability of
the Company to protect its intellectual property rights; (8) the
profitability of the Company’s larger projects, which are subject
to protracted sales cycles; (9) whether the raw materials,
components, finished goods and services used by the Company to
manufacture its products will continue to be available and will not
be subject to significant price increases; (10) the IT, vertical
real estate and large format wallscape modified regulatory
restrictions or building codes; (11) the ability of the Company’s
manufacturing facilities to meet their projected manufacturing
costs and production capacity; (12) the future financial
performance of the Company; (13) the emergence of new technologies
and the response of the Company’s customer base to those
technologies; (14) the ability of the Company to retain or recruit,
or to effect changes required in, its officers, key employees or
directors; (15) the ability of the Company to comply with laws and
regulations applicable to its business; and other risks and
uncertainties set forth under the section of the Company’s Annual
Report on Form 20-F entitled “Risk Factors.”
These forward-looking statements are based on
information available as of the date of this press release and the
Company’s management team’s current expectations, forecasts and
assumptions, and involve a number of judgments, known and unknown
risks and uncertainties and other factors, many of which are
outside the control of the Company and its directors, officers and
affiliates. Accordingly, forward-looking statements should not be
relied upon as representing the Company management team’s views as
of any subsequent date. The Company does not undertake any
obligation to update, add or to otherwise correct any
forward-looking statements contained herein to reflect events or
circumstances after the date they were made, whether as a result of
new information, future events, inaccuracies that become apparent
after the date hereof or otherwise, except as may be required under
applicable securities laws.
Media Contact:Dukas Linden Public Relations T:
212-704-7385captivision@dlpr.com
Investor Contact:Gateway GroupRalf EsperT:
949-574-3860CAPT@gateway-grp.com
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