Oslo,
Norway - 30 January 2019 - IDEX Biometrics (IDEX ASA), the
leading provider of advanced fingerprint identification and
authentication solutions, is pleased to announce the completion of
a private placement. A total of NOK 214 million (USD 25 million)
has been committed from existing shareholders, including Woodford
Investment Management, Invesco and members of the Board and
management team.
This fundraise will meet capital and working capital requirements
and the Board expects the additional funds to take the Company
through to profitability.
The private placement
structure of the transaction will inherently require a waiver of
existing shareholders' preferential rights to subscribe for new
shares. The Board considers such structure and waiver necessary and
appropriate to secure timely financing for the purposes described
above. The stated subscription price represents a 26% premium to
the closing price of the IDEX share on Oslo Børs on 29 January
2019. The Board believes that the private placement is in the best
interest of the Company and its shareholders.
A total of 53,437,500 shares
will be issued at a price of 4.00 NOK per share, raising a total of
NOK 213,750,000 (USD 25,000,000). The capital issue is covered by
the board's authorization to issue up to 10% new shares as resolved
by the 2018 AGM on 9 May 2018. Following the capital increase, IDEX
will have a share capital amounting to NOK 89,662,805.55, divided
into 597,752,037 shares at NOK 0.15 nominal value per share.
IDEX anticipates a
significant ramp-up in sales driven by rapidly growing customer
demand for both its contact-less and contact-based biometric card
solutions. These are now ready for mass production at market
enabling prices and disruptive cost compared to alternative
solutions currently being trialled in the market. The product
portfolio also includes proprietary secure and compact matching
algorithms, and a remote enrollment solution.
IDEX has received the
industry's first production order and believes it is the only
supplier of dual-interface and contact-based solutions meeting all
requirements for certification. IDEX is also the only supplier of
biometric cards at competitive and enabling prices due to its
'off-chip' technology. This 'off-chip' technology has a uniquely
strong cost and performance value proposition for smart cards,
recognized by global eco-system leaders. As such, IDEX is ideally
positioned to capture a large share of the market for biometric
payment cards, estimated to reach more than 575m units by 2023
(Goode Intelligence, 2018).
This belief is supported by
a significant increase in customer interest across EMEA, Americas
and Asia for IDEX's biometric payment card solutions, which adds to
its growing pipeline of opportunities. Recent announcements,
fortifying its Asian presence, include XH Smart Tech, Chutian
Dragon Co., Ltd and CEC Huada Electronic Design Co., Ltd. The
Company looks forward to announcing contract wins and important
developments in the near future.
Following significant growth
in end-customer traction and awareness of its biometric cards, IDEX
is also pleased to report a recent increased interest in its
solutions from potential global strategic partners. The Company is
currently in discussion with these global partners to enable deeper
strategic collaboration, which may result in an additional equity
investment.
IDEX also recognizes the
international composition of its shareholders and considers it
increasingly important to access a broader and strategic investor
base. As a result, the Company intends to pursue options to list
its shares on an international regulated investment exchange such
as the London Stock Exchange or Nasdaq.
To further enhance its
market leading position and future competitiveness, IDEX has, in
the last quarter alone, made collaborations with Visionox, to
develop fingerprint sensors with integrated displays, and with
Shenzhen Excelsecu Data Technology Co., Ltd to develop battery-less
dual-interface biometric cards with display.
Stan Swearingen, CEO of IDEX
said: "We are delighted to secure this funding from existing
shareholders so that we are able to fully capitalize on the level
of anticipated demand for our solutions. This investment is a
strong endorsement of the massive value creation potential of
IDEX's fingerprint sensor technology in the biometric smart card
space."
For
further information contact:
Henrik Knudtzon, CFO
+47 9302 2827
Stuart Hunt, Head of
Investor Relations & Communications
+44 1276 534 632
About
IDEX Biometrics
IDEX Biometrics, legal name IDEX ASA (OSE: IDEX), is the leading
provider of fingerprint identification technologies offering
simple, secure and personal authentication for all. We help people
make payments, prove their identity, gain access to information,
unlock devices or gain admittance to buildings with the touch of a
finger. We invent, engineer and commercialize these secure, yet
incredibly user-friendly solutions. Our total addressable market
represents a fast-growing multi-billion-unit opportunity.
For more information, visit www.idexbiometrics.com and follow
@IDEXBiometrics
This information is subject
to the disclosure requirements pursuant to section 5-12 of the
Norwegian Securities Trading Act.