Fingerprint Cards Seeks Financial Stability with Rights Issue

Sweden-based Fingerprint Cards (Fingerprints) has announced a partially guaranteed rights issue to raise about SEK 159.9 million. The initiative, approved at an extraordinary general meeting on January 17, aims to strengthen the company’s financial position and support ongoing operations. This funding round comes as Fingerprints continues its strategic pivot away from mobile device authentication, following its recent partnership with Egis Technology to wind down its mobile business.

The rights issue will offer existing shareholders units consisting of new Series B shares and warrants. Each unit, priced at SEK 0.48, contains 48 B-shares and 8 warrants issued without charge. Shareholders will receive one unit right per existing share, with 11 unit rights required to subscribe for one unit.

At full subscription, the issue will generate a maximum of 333,126,105 units, yielding approximately SEK 159.9 million before costs. This capital raise follows the company’s recent technological developments, including the launch of its FPC AllKey system last year, which combines logical and physical access control capabilities.

Fingerprints has implemented several structural adjustments to facilitate the rights issue. These include reducing the company’s share capital by SEK 158.99 million to lower share quotient value, followed by a bonus issue to restore the reduced capital without issuing new shares. The company has also amended its articles of association to accommodate the new share structure.

The rights issue falls under Swedish regulatory oversight, including the Foreign Direct Investment Screening Act. Certain investments may require mandatory filing with the Inspectorate of Strategic Products, particularly those involving significant voting power or management influence. The offering excludes several jurisdictions, including the United States, Canada, and Japan, due to regulatory restrictions.

The proceeds will support financial stability and, presumably, potential growth initiatives in Fingerprints’ biometrics business, particularly as the company strengthens its position in the emerging biometric payment cards market. Under the leadership of Chief Strategy and Technology Officer David Eastaugh, who was appointed last summer, the company is expected to focus on expanding its presence in the access control and payments sectors.

The structure includes a low subscription price per share of SEK 0.01 and warrant issuance, which may affect existing equity dilution. The company has noted that market conditions and operational outcomes may impact the initiative’s success. Following the January 24, 2025 record date, eligible shareholders can begin unit subscriptions. The company recommends that investors review the prospectus and seek professional advice regarding participation.

Source: Fingerprints

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January 24, 2025 – by the ID Tech Editorial Team