Fingerprint Cards AB publishes final outcome in the rights issue

NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, BELARUS, HONG KONG, JAPAN, CANADA, NEW ZEALAND, RUSSIA, SINGAPORE, SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH THE RELEASE, DISTRIBUTION OR PUBLICATION WOULD BE UNLAWFUL, REQUIRE REGISTRATION OR OTHER MEASURE PURSUANT TO APPLICABLE LAW. PLEASE SEE "IMPORTANT INFORMATION" AT THE END OF THIS PRESS RELEASE.

The subscription period in Fingerprint Cards AB’s (publ) (“Fingerprints” or the “Company”) partially guaranteed issue of units consisting of new shares of series B (“B-shares”) and warrants entitling for subscription of B-shares (“Warrants”) (together “Units”) with preferential rights for existing shareholders (the “Rights Issue”) ended on 11 February 2025. The final outcome in the Rights Issue shows that 199,824,120 Units, corresponding to approximately 60.0 percent of the Units offered in the Rights Issue, have been subscribed for with support of unit rights. In addition, applications to subscribe for 39,908,976 Units without the support of unit rights have been received, corresponding to approximately 12.0 percent of the Units offered in the Rights Issue. A total of 239,733,096 Units has thus been subscribed for in the Rights Issue, which corresponds to approximately 72.0 percent of the Units offered in the Rights Issue and total issue proceeds of approximately SEK 115.1 million before deduction for transaction costs, entailing that no guarantee commitments will be utilized.

“I want to thank both our existing shareholders and the new investors who have participated in the rights issue. With this support, we are now strategically positioned to confidently complete the transformation plan while maintaining the financial flexibility necessary for future growth”, commented Adam Philpott, President and CEO of Fingerprints.

Each Unit consists of forty-eight (48) B-shares and eight (8) Warrants, where each Warrant entitles to subscription of one (1) new B-share in the Company. In total 239,733,096 Units will be issued in the Rights Issue. This entails that 11,507,188,608 new B-shares and 1,917,864,768 Warrants entitling to subscribe for a corresponding number of B-shares will be issued.

Following registration of the Rights Issue with the Swedish Companies Registration Office, Fingerprints share capital will increase by SEK 2,301,437.7216 to SEK 162,023,501.667533 (taking into account the reduction of the share capital and the bonus issue resolved by the extraordinary general meeting on 17 January 2025). The number of B-shares in the Company will increase with 11,507,188,608 to 15,167,500,766 and the number of votes will increase with 11,507,188,608 to 15,246,250,766. Upon full exercise of all Warrants in the Rights Issue during the exercise period that runs from and including 11 September 2026 up to and including 2 October 2026, the number of B-shares in the Company will increase by an additional 1,917,864,768 B-shares and the Company’s share capital will increase by an additional SEK 20,476,538.454643 (taking into account the share quota value that will apply immediately following the registration with the Swedish Companies Registration Office of the reduction of the share capital and the bonus issue resolved by the extraordinary general meeting on 17 January 2025 as well as the new B-shares in the Rights Issue). Shareholders not participating in the Rights Issue will be subject to a dilutive effect corresponding to approximately 75.8 percent of the number of shares and approximately 75.5 percent of the number of votes in the Company. If the Warrants are exercised in full, there will be an additional dilutive effect corresponding to approximately 11.2 percent of the number of shares and votes. Thus, the Rights Issue may entail a total dilution effect of approximately 78.5 percent of the number of shares and approximately 78.2 percent of the number of votes in the Company if all Warrants are exercised in full.

Allotment of Units subscribed for without support of unit rights will be made in accordance with the principles that are included in the prospectus published by the Company on 23 January 2025. Confirmation of allotment to the persons that have subscribed for Units without the support of unit rights will be provided by means of a settlement note to be distributed to each subscriber on or around 13 February 2025. Subscribed and allotted Units shall be paid for in accordance with the instructions on the settlement note to be sent to each subscriber. Nominee registered shareholders will receive notice of the allotment in accordance with the procedures of the respective nominee.

The last day of trading in paid subscribed Units (Sw. betalda tecknade Units, BTU) is 20 February 2025. The new B-shares and Warrants issued through the issue of Units are expected to be registered with the Swedish Companies Registration Office on or around 21 February 2025. The new B-shares and Warrants are expected to be delivered to the subscribers’ securities accounts on or around 26 February 2025.

In connection with the registration of the new B-shares and Warrants with the Swedish Companies Registration Office, the board of directors will register new articles of association for the Company in accordance with the resolution by the extraordinary general meeting on 17 January 2025 (item 7 (c) in the notice to the extraordinary general meeting). Pursuant to the new articles of association, the number of shares in the Company shall not be fewer than 7,000,000,000 and not exceed 28,000,000,000. The new articles of association will be available on Fingerprints’ website from its registration with the Swedish Companies Registration Office.

Advisors

Fingerprints has engaged Penser by Carnegie, Carnegie Investment Bank AB (publ), as financial advisor and Gernandt & Danielsson Advokatbyrå KB as legal advisor in connection with the Rights Issue.

For information, please contact:
Adam Philpott, CEO

Investor Relations:
+46(0)10-172 00 10
investrel@fingerprints.com

Press:
+46(0)10-172 00 20
press@fingerprints.com

The information was submitted for publication, through the agency of the contact person set out above, on 12 February 2025 at 10:40 PM CET.

Important information

This press release does not contain and does not constitute an offer to acquire, subscribe or otherwise trade in units, warrants, shares, unit rights, subscription rights, BTU, BTA, convertibles or other securities in Fingerprints. The offer to relevant persons regarding the subscription of shares and warrants in Fingerprints (though units) will only be made through the prospectus that Fingerprints published on its website following approval and registration with the Swedish Financial Supervisory Authority on 23 January 2025.

The information in this press release may not be disclosed, published or distributed, directly or indirectly, in or into the United States (including its territories and possessions), Australia, Japan, Canada, Hong Kong, New Zealand, Singapore or South Africa or any other jurisdiction where distribution or publication would be illegal or require registration or other measures than those that follow from Swedish law. Actions that violate these restrictions may constitute a violation of applicable securities laws.

No units, warrants, shares, unit rights, subscription rights, BTU, BTA, convertibles or other securities have been registered, and no units, warrants, shares, unit rights, subscription rights, BTU, BTA, convertibles or other securities will be registered under the United States Securities Act of 1933 as currently amended (“Securities Act”) or the securities legislation of any state or other jurisdiction of the United States and no units, warrants, shares, unit rights, subscription rights, BTU, BTA, convertibles or other securities may be offered, sold, or otherwise transferred, directly or indirectly, within or into the United States, except under an available exemption from, or in a transaction not subject to, the registration requirements under the Securities Act and in compliance with the securities legislation in the relevant state or any other jurisdiction of the United States.

In all EEA Member States (“EEA”), other than Sweden, Denmark, Finland and Norway, this press release is intended for and is directed only to qualified investors in the relevant Member State as defined in the Regulation (EU) 2017/1129 (together with associated delegated regulations and implementing regulations, the “Prospectus Regulation”), i.e. only to those investors who can receive the offer without an approved prospectus in such EEA Member State.

In the United Kingdom, this press release is directed and communicated only to persons who are qualified investors as defined in Article 2(e) of the Prospectus Regulation (as incorporated into domestic law in the United Kingdom) who are (i) persons who fall within the definition of “professional investors” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (“the Regulation”), or (ii) persons covered by Article 49(2)(a) - (d) in the Regulation, or (iii) persons to whom the information may otherwise lawfully be communicated (all such persons referred to in (i), (ii) and (iii) above are collectively referred to as “Relevant Persons”). Securities in the Company are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will only be processed in respect of Relevant Persons. Persons who are not Relevant Persons should not act based on or rely on the information contained in this press release.

The Company considers that it carries out protection-worthy activities under the Foreign Direct Investment Screening Act (the “Swedish FDI Act”) (Sw. lag (2023:560) om granskning av utländska direktinvesteringar). According to the Swedish FDI Act, the Company must inform presumptive investors that the Company’s activities may fall under the regulation and that the investment may be subject to mandatory filing. If an investment is subject to mandatory filing, it must prior to its completion, be filed with the Inspectorate of Strategic Products (the “ISP”). An investment may be subject to mandatory filing if i) the investor, a member of the investor’s ownership structure or a person on whose behalf the investor is acting would, after the completion of the investment, hold votes in the Company equal to, or exceeding any of the thresholds of 10, 20, 30, 50, 65 or 90 percent of the total number of votes in the Company, ii) the investor would, as a result of the investment, acquire the Company, and the investor, a member of the investor’s ownership structure or a person on whose behalf the investor is acting, would, directly or indirectly, hold 10 percent or more of the total number of votes in the Company, or iii) the investor, a member of the investor’s ownership structure or a person on whose behalf the investor is acting, would acquire, as a result of the investment, direct or indirect influence on the management of the Company. The investor may be imposed an administrative sanction charge if a mandatory filing investment is carried out before the ISP either i) decided to leave the notification without action or ii) authorised the investment. Each shareholder should consult an independent legal adviser on the possible application of the Swedish FDI Act in relation to the Rights Issue for the individual shareholder.

This announcement does not constitute an investment recommendation. The price and value of securities and any income from them can go down as well as up and you could lose your entire investment. Past performance is not a guide to future performance. Information in this announcement cannot be relied upon as a guide to future performance.

Forward-looking statements

Matters discussed in this press release may contain forward-looking statements. Such statements are all statements that are not historical facts and contain expressions such as “believes”, “expects”, “anticipates”, “intends”, “estimates”, “will", “may”, “continues”, “should” and other similar expressions. The forward-looking statements in this press release are based on various assumptions, which in several cases are based on additional assumptions. Although Fingerprints believes these assumptions were reasonable when made, such forward-looking statements are subject to known and unknown risks, uncertainties, contingencies and other material factors that are difficult or impossible to predict and beyond its control. Such risks, uncertainties, contingencies and material factors could cause actual results to differ materially from those expressed or implied in this communication through the forward-looking statements. The information, perceptions and forward-looking statements contained in press release speak only as at its date, and are subject to change without notice. Fingerprints undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or other circumstances, except for when it is required by law or other regulations. Accordingly, investors are cautioned not to place undue reliance on any of these forward-looking statements.

Information to distributors

Solely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended (“MiFID II”); (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II; and (c) local implementing measures (together, the “MiFID II Product Governance Requirements”), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any “manufacturer” (for the purposes of the MiFID II Product Governance Requirements) may otherwise have with respect thereto, the shares in Fingerprints have been subject to a product approval process, which has determined that such shares are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in MiFID II; and (ii) eligible for distribution through all distribution channels as are permitted by MiFID II (the “Target Market Assessment”). Notwithstanding the Target Market Assessment, Distributors should note that: the price of the shares in Fingerprints may decline and investors could lose all or part of their investment; the shares in Fingerprints offer no guaranteed income and no capital protection; and an investment in the shares in Fingerprints is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Rights Issue.

For the avoidance of doubt, the Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the shares in Fingerprints.

Each distributor is responsible for undertaking its own target market assessment in respect of the shares in Fingerprints and determining appropriate distribution channels.

About Fingerprints
Fingerprint Cards AB (Fingerprints) – the world’s leading biometrics company, with its roots in Sweden. We believe in a secure and seamless universe, where you are the key to everything. Our solutions are found in hundreds of millions of devices and applications, and are used billions of times every day, providing safe and convenient identification and authentication with a human touch. For more information visit our website, read our blog, and follow us on X. Fingerprints is listed on Nasdaq Stockholm (FING B).

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