SuperCom has raised $3.2 million through a private placement, the company has announced.
The placement comprised 2,370,000 of SuperCom’s unregistered ordinary shares, at $1.35 per share. Each share was sold with a warrant for an exercise price of $1.70, which can be acted upon for a period of five years.
The private placement comes after announcements of major contracts for SuperCom this year. In February, the company struck a deal to provide house arrest monitoring technologies, including fingerprint biometrics, for the Estonian government; and in April it agreed to provide offender tracking solutions to a Canadian government agency.
The company also announced a version of its Pure Health platform adapted to address COVID-19 challenges at the end of March.
Commenting on the private placement, SuperCom CEO Arie Trabelsi suggested that it would help to further refine these technology solutions.
“The proceeds from this offering can help support, among other things, working capital growth as we further invest in our technology products and solutions,” he said. “We believe that as the needs of our customers for our Pure Health and Pure Security solutions continue to grow, we need to continue to provide technology enhancements, shorter delivery times and the same exceptional service they’ve come to expect from us, and in turn, we expect to not just maintain, but grow high-margin recurring revenue streams from these products and solutions in the future.”
The private placement was announced on July 8 and closed the next day, with Maxim Group LLC having acted as the sole placement agent.
July 15, 2020 – by Alex Perala