IDEX Biometrics has obtained subscriptions for 120 million new shares in a private placement, the company has announced. The shares were priced at NOK 0.75 each, allowing the company to raise NOK 90.0 million, or about $9.9 million USD, in total.
In pursuing the private placement, IDEX’s Board of Directors decided to waive existing shareholders’ preferential right to subscribe to new shares because the need to secure timely funding was in the best interest of the company and all shareholders. The private placement went to eight shareholders.
“This fundraising will meet the company’s capital requirements and the board expects, based on current market conditions, that these funds will take the company through to profitability,” IDEX asserted in a statement.
The company went on to highlight its unique position as a provider of flexible, off-chip fingerprint sensor technology, particularly with respect to biometric payment cards and biometric smart cards for access control. IDEX says that it expects volume shipments in both of these markets to occur in 2020.
The new private placement will be undertaken in two tranches. An initial tranche of 55.4 million shares “will be issued as soon as practical”, while a second tranche of 64.6 million shares will be subject to approval at an extraordinary general meeting which IDEX has tentatively scheduled for December 12th of this year.
November 18, 2019 – by Alex Perala