Fingerprints Announces Final Terms for Partially Guaranteed Rights Issue
Thursday, Jan 16, 2025 3:03 pm ET
1min read Fingerprint Cards AB (publ) ("Fingerprints" or the "Company") has announced the final terms for its partially guaranteed rights issue of units consisting of shares of series B ("B-shares") and warrants entitling for subscription of B-shares ("Warrants") (together "Units") of up to approximately SEK 160 million with preferential rights for its existing shareholders, subject to subsequent approval from an extraordinary general meeting in the Company to be held on 17 January 2025.
The subscription price for each Unit has been set at SEK 0.48, corresponding to SEK 0.01 per underlying B-share (the Warrants are issued free of charge), which entails that the Rights Issue, if fully subscribed for, will provide the Company with proceeds of approximately SEK 159.9 million before deduction of issue costs related to the Rights Issue.
The final terms of the Rights Issue indicate that a maximum of 333,126,105 Units will be issued in total. Each Unit consists of forty-eight (48) B-shares and eight (8) Warrants, each of which entitles to subscription of one (1) new B-share in the Company. This entails that not more than 15,990,053,040 new B-shares and 2,665,008,840 Warrants will be issued in the Rights Issue.
The subscription price per Unit has been set at a discount of approximately 35 percent to the theoretical ex-rights price (TERP) of the Company's B-share, which is indicative of a price that is attractive to investors. This discount may lead to an increase in demand for the Company's shares, as investors seek to take advantage of the opportunity to acquire shares at a lower price than the current market price.
The issuance of new shares through the Rights Issue will result in an increase in the Company's share capital and the number of outstanding shares. This may lead to a dilution of existing shareholders' ownership in the Company, which could potentially put downward pressure on the share price. However, the high level of support for the Rights Issue and the attractive subscription price may offset this dilution effect, leading to an increase in the Company's market capitalization.
In summary, the partially guaranteed rights issue is expected to have a positive impact on Fingerprints' share price and market capitalization, as it is supported by existing shareholders and investors, and the subscription price is attractive to new investors. However, the issuance of new shares may lead to a dilution of existing shareholders' ownership, which could potentially put downward pressure on the share price.
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