Precise Biometrics has approved a rights issue intended to raise up to SEK 110.3 million before transaction costs following its combination with Fingerprint Cards. The Swedish biometrics company plans to issue a maximum of 134,508,376 ordinary shares at SEK 0.82 per share.
Existing shareholders will receive one subscription right for each share held on the July 27 record date. Twelve rights will entitle the holder to subscribe for 11 new shares. The subscription period is scheduled to run from July 29 through August 12, with the outcome expected around August 13.
The subscription price represents an estimated 35 percent discount to the theoretical ex-rights price based on Precise Biometrics’ July 20 closing price. Shareholders who do not participate could see their holdings diluted by approximately 48 percent if the issue is fully subscribed.
Guarantee commitments total SEK 100 million, an increase of SEK 20 million from the amount disclosed when the merger was announced. The structure includes SEK 80 million of bottom guarantees and SEK 20 million of top guarantees. Fees are set at 11 percent and 13 percent of the respective guaranteed amounts.
Precise Biometrics said the proceeds will finance integration after it completed the Fingerprint Cards merger, repay bridge financing, fund identified synergies and support product development and commercial programs. The merged company combines fingerprint and palm algorithms, liveness technology, sensors and access-control products.
The company has estimated annual cost synergies of at least SEK 45 million, with implementation costs of about SEK 25 million. Its earlier merger documentation set out the integration and product roadmap that now forms the basis for the proposed use of proceeds.
The offering is covered by guarantees but is not fully underwritten for its maximum amount. A full subscription would leave roughly SEK 10.3 million above the guaranteed total before issue costs. Precise Biometrics’ chief executive and chief marketing officer have also committed to subscribe for their pro rata allocations, representing about SEK 48,000 combined.
Trading in subscription rights is expected from July 29 through August 7. The company’s shares begin trading without entitlement to the new rights on July 24.
Sources: Precise Biometrics
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By the ID Tech Editorial Team
