Precise Biometrics Carries out Two New Shares Issues Worth SEK 61 Million
The amount of the issue is guaranteed through subscription declarations and issue guarantees
LUND, Sweden, Feb. 12 -- The Board of Directors of Precise Biometrics AB (publ) has on 11 February 2004 resolved on a new share issue with preferential rights for the Company's existing shareholders, in accordance with the authorization granted to the Board of Directors at the Extraordinary General Meeting on 20 January 2004. The new share issue is fully guaranteed through declarations from the major shareholders of their intention to subscribe for shares and issue guarantees. The new share issue is estimated to bring the Company approximately SEK 45.7 million, before deduction of costs related to the issue. The terms of the issue are 1:2 and the issue price is SEK 2.25 per share.
The Board of Directors has, in addition to the above and in accordance with the authorization granted, further resolved on a directed new share issue of 5,000,000 new series A shares, at an issue price of SEK 3.10, for the purpose of further strengthening the Company's financial position. With deviation from the existing shareholders' preferential rights, external financial investors shall be entitled to subscribe for all of the new shares. The new share issue has been subscribed for in its entirety and will lead to a dilution of 12 per cent. The issue price is based on the average closing share price during the 5 latest trading days, adjusted with an issue discount, on market terms, of 4.7 per cent. The subscribers in the directed new share issue, will be entitled to participate in the new share issue with preferential rights for the existing shareholders.
"The Board of Directors has resolved on a directed new share issue since it has, due to the increasing market interest in the Company, considered it to be in the best interest of the shareholders to immediately strengthen the Company's financial position and broaden the base of shareholders. All in all, the amount is considerably higher than originally planned. The reason for this is to maximize the Company's possibility to reach its full market potential within the existing financing and not any new assessment of the cost level for the Company. Furthermore, the interest on the stock market has been very strong. The directed new share issue supplements the new share issue with preferential rights for the existing shareholders in a way the Board of Directors considers desirable, giving the Company a broader base of shareholders for the future and further strengthens the Company's possibility for future development as well as our position in the continuous dialogue with industrial partners," says Lars Gronberg, chairman of the Board of Directors in Precise Biometrics.
The capital is intended to finance the future development and growth of Precise Biometrics and the Board of Directors emphasizes that the level of the financing does not change the planning and the milestones set out for Precise Biometrics for the years to come.
"It is very gratifying that the market has shown such confidence in Precise Biometrics, particularly since the second half of 2003 did not by far meet our expectations. However, the state of business for 2004 looks very promising and Precise Biometrics has a very good starting point, based on the strong technical platform and the co-operations we have developed, especially within the smart card industry. I am convinced that the delayed investments in biometric solutions, having troubled us during 2003, will pay off during 2004 and that the market will reach the growth that we see for the future. The increased confidence in the Company shown by the shareholders today, creates new possibilities to further strengthen our market position through a more aggressive patent strategy and possibilities to bring forward essential development projects," says Christer Bergman, President & CEO of Precise Biometrics.
Terms and preliminary timetable for the new share issue with preferential rights for the shareholders Number of new series A shares 20,305,150 Issue price SEK 2.25 Terms 1:2 Record day 8 March Announcement of prospect 9 March Subscription period 11-26 March Settlement day for subscription with preferential right 26 March Terms for the directed new share issue Number of new series A shares 5,000,000 Issue price SEK 3.10 Subscription day 12 February Settlement day 16 February For further information, please contact: Lars Gronberg, Chairman of the Board, Precise Biometrics AB Phone: +46 70 727 54 55 Christer Bergman, President and CEO, Precise Biometrics AB Phone: +1 703 405 8255 or +46 730 35 67 26. E-mail: christer.bergman@precisebiometrics.com
Precise Biometrics AB (publ) is an innovative security company that supplies world-leading systems for authentication using fingerprints. The solutions supplied by the company replace keys, PIN codes and passwords. The company's products are cost effective and provide security and comfort combined with top-class protection of personal integrity. The range of products includes systems for access control to buildings, computers and networks and for building into mobile and terminals, such as mobile phones and portable computers. The company headquarters are in Lund, Sweden. The company also has offices in Stockholm and a U.S. subsidiary in Washington, D.C. Precise Biometrics is listed on the O-list of the Stockholm Stock Exchange (symbol: PREC A). For more information about Precise Biometrics, visit http://www.precisebiometrics.com/