Business
SEALSQ Announces Closing of the Second $10.0 Million Tranche of Convertible Notes and Warrants Private Placement
Tortola, British Virgin Islands, Jan. 11, 2024 (GLOBE NEWSWIRE) -- SEALSQ Corp (Nasdaq: LAES) (“SEALSQ” or “Company”), a leader in semiconductor, PKI, and
About this update from Sealsq Corp
[{"type":"text","content":"Tortola, British Virgin Islands, Jan. 11, 2024 (GLOBE NEWSWIRE) -- SEALSQ Corp (Nasdaq: LAES) (“SEALSQ” or “Company”), a leader in semiconductor, PKI, and Post-Quantum technology development, today announced the closing of the second tranche of a private placement, amounting to $10 million, which is part of the Company's $20 million private placement pursuant to the securities purchase agreement entered into July 11, 2023 with a select group of institutional investors (the “Investors”). Of note, the first $10 million tranche under this securities purchase agreement has been repaid (in the form of the Company’s Ordinary Shares) with less than 20% of the original amount still outstanding. Gross proceeds, before expenses, from this recent in-bound investment in the form of Senior Unsecured Original Issue 4% Discount Convertible Promissory Notes, totaled $9.6 million. The 24-month maturity Notes, bearing an interest rate of 4% per annum, are convertible into SEALSQ's ordinary shares at an initial conversion price equal to the lesser of $4.00 per ordinary share or 92% of the lowest daily volume weighted average price of the ordinary shares during the ten trading days immediately preceding the notice of conversion of the Notes, subject to adjustment as further specified in the Notes. The Notes will be fully repayable in cash upon maturity. In addition, the Investors have the option of prepayment of up to 30% of the issuance amount of a subsequent financing. The Investors have agreed to use commercially reasonable efforts to limit their sale of shares received under the second tranche and any subsequent tranches in a weekly quantity not to exceed 15% of the average weekly trading volume of the Ordinary Shares on the Nasdaq in that week. Accompanying this investment, the Investors have received five-year warrants to purchase up to 2,288,678 ordinary shares of SEALSQ, with the exercise price initially set at $4.00 per share. This arrangement paves the way for a potential third funding tranche of up to $10 million, if mutually agreed to by the Investors and the Company, subject to a 4% original issue discount and other agreed conditions. Maxim Group LLC served as the sole placement agent for this private placement. SEALSQ will file a registration statement for the resale of shares issuable upon conversion of the Notes and exercise of the ...