Precise Biometrics to raise capital and announces partnership with Verizon
Editor / Provider: Precise Biometrics | Updated: 3/25/2013 | Article type: Security 50
- The Board of Directors of Precise Biometrics has decided to propose the AGM on April 23, 2013 to decide to undertake a rights issue with preferential rights for Precise Biometrics' shareholders of approximately US$8.5 million (SEK 55 million).
-The rights issue is implemented to finance increased working capital due to new orders, develop Tactivo through increased resources for production, product development and sales and marketing efforts worldwide.The rights issue is guaranteed up to a level of 70% of the rights issue, approximately $6.0 million.
- The terms and conditions for the rights issue, including the subscription price and ratio basis, will be established and announced on April 29, 2013.
- Provided that the AGM on April 23, 2013 resolves the rights issue in accordance with the Board of Directors' proposal, the subscription period will run from May 10 – 24, 2013.
Precise Biometrics has started off 2013 very strongly.
Both of its two business areas have won milestone orders which will form the basis of the coming years.
The business area IAM won a contract of providing the Company's fingerprint algorithms for one of the largest providers of financial information in the world based in the US. This is a significant testament to the quality and performance of the license business. As such the Company considers Precise Biometrics very well positioned for the very large market which lies ahead, when fingerprint sensors will become standard components in all SmartPhones and Tablets starting already in 2013.
The other important milestone was that one of the largest Mobile Operators in the US placed an initial order of 5,000 Tactivos as part of a sales drive towards their Government and Enterprise customers. The Company's expectations are that new forthcoming policies will require US Government employees and Contractors to use card readers when accessing information, mail etc. from their mobile devices.
In light of these positive developments and considering that Precise Biometrics repaid the credit facility in January and no longer have any debt, the Company wishes to ensure that it has sufficient working capital available to continue to build upon and pace the current momentum.
This has resulted in initial orders from companies and governments in the international market. Furthermore, a number of civil and military authorities in the U.S. initiated pilot projects based on Tactivo, which will lead to more orders in the future. The order from one of the largest mobile operators in March confirms the strong interest that exists for Tactivo.
Based on this, Precise Biometrics have made additional investments in product development Tactivo for Android. Precise Biometrics have to make sure that they cover the biggest mobile platforms, teamed with Sony Mobile. Thus represents Tactivo the new and powerful business area as they have expected, in addition to their licensing activities they engaged in the business area IAM.
The business area IAM has had a strong start to 2013 with the prestigious order from a leading US-based provider of financial information services. With the order, Precise Biometrics expect the business area IAM going to take advantage of the ongoing initiatives in the mobile sector where fingerprint sensors are built into smartphones and tablets.
As earlier announced, one of the largest mobile operators in the US has placed an initial order of 5,000 Tactivo units for March delivery.
CEO & President of Precise Biometrics, Thomas Marschall says: “We are very excited about this relationship and look forward to working closely with Verizon to develop this further.” Precise Biometrics may be required to disclose the information provided herein pursuant to the Securities Markets Act. /P>