Biometrics stocks update: Zwipe subscription details, weak OneConnect IPO and De La Rue warning
Zwipe has announced the approval of a previously announced preferential rights issue of up to NOK 74.5 million (roughly US$8.16 million) at its extraordinary general meeting, and published the required prospectus. The funds come from the issue of up to 10,635,525 new shares in the company.
Nine primary insiders have picked up shares, and in most cases been granted additional subscription rights as well, the company has disclosed. CEO André Løvestam, several board members, several other previous investors have committed to subscriptions or entered rights transfer agreements, and new CTO Robert Müller has become a shareholder, with 28,572 shares in a rights issue at a subscription price of NOK 7 ($0.77) per share.
Existing shareholders in the company VPS register as of December 4, 2019, who purchased shares on or before December 2 receive subscription rights, at the same NOK 7 per share price. One subscription right is granted for each existing share, and three subscription rights entitle the holder to two shares in the rights issue, according to a company announcement. The subscription period is from December 5 to 19, and subscription rights not sold by December 17 will lapse. Zwipe cannot establish an expected economic value from the subscription rights, as the quoted share price is lower than the subscription price in the rights issue.
Zwipe also recently appointed a new CFO, one of several companies announcing appointments along with VerifyMe and Ping Identity.
OneConnect facing down round in IPO
The IPO of Ping An Insurance subsidiary OneConnect Financial Technology on the New York Stock Exchange may not raise the $500 million the company hoped for, as Bloomberg reports the per-share price for its 36 million U.S. depository shares suggests a valuation of roughly a third less than the $7.5 billion implied in a February, 2018 funding round.
The $12 to $14 price range implies a value of between $4.4 and $5.2 billion, after OneConnect raised $650 million from investors including SBI Group and the beleaguered Softbank.
The struggles of companies from China listing in the U.S. this year was recently noted as the company considered which exchange to list on.
De La Rue warns investors
Unprecedented changes, including in senior management, have led to inconsistent recent performance in quality and speed of execution for De La Rue, Securing Industry reports newly-appointed CEO Clive Vacher as saying.
The company has warned that if it is not successful with its turnaround plan, it will collapse, sparking a sell-off of its shares. De La Rue’s authentication business is showing good growth, but its banknote printing operations are not.
First half revenue for the company was reported at just under £206 million ($265 million), a 15 percent decrease from the previous year, leading to an operating loss of £10 million. The smaller authentication business grew by 70 percent in the same period to £33 million. The identity document business it recently divested for £42 million grew 10 percent to £44 million in the first half of this year.
Recent challenges for the company include the loss of the UK Passport contract to Gemalto, a debt in Venezuela which has been written off, and a Serious Fraud Office investigation into its activities in South Sudan.
The company plans to save £20 million over the next three years through cost-cutting initiatives.
VSBLTY engages investor outreach firm
VSBLTY has engaged Canadian investor-relations and capital markets firm CHF Capital Markets to pursue investment community outreach, corporate communications, strategic counseling and content creation.
CHF receives CAD $5,700 (US$4,300) plus tax each month for a year, along with incentive stock options to purchase up to 125,000 common shares at $0.30 per share for the next two years.
“We are delighted to start working with Cathy Hume and her team. We believe 2020 will be a game changer for VSBLTY,” comments VSBLTY Founder and CEO Jay Hutton. “With all the partnerships and agreements that have already been signed and those pending, we need to ensure our story is known among the Canadian investor audience. With decades of experience in the IR and Capital Markets field and with influential connections, CHF will be a valuable strategic partner and advisor in Canada, while we focus on steadily expanding on the progress we have made to date and continue to grow the Company.”
Kabn Systems to take over Torino Power Solutions
Kabn Systems North America, a fintech company leveraging biometric ID verification, has signed a non-binding letter of intent with Torino Power Solutions to execute a reverse takeover as is prepares to launch a digital banking and financial services platform.
The platform will consist of continuous ID validation and verification process KABN ID, which is based on biometrics and blockchain, the KABN Card, which acts as a payment card and digital wallet, for multi-currency transactions with digital or fiat currencies, and KABN KASH, a loyalty and customer engagement platform.
Iris Corp net profit doubles
Iris Corp has reported an increase of more than 139 percent in net profit to RM10 million ($2.4 million) for Q2 2020, and announced a partnership with Sri Lanka’s Metropolitan Office to collaboratively explore opportunities in the country’s e-Passport, automated border control (ABC), and attendance management markets.
The company’s revenue declined 4 percent in the quarter compared to a year ago, but lower costs led to earnings per share of RM 0.34 ($0.08). Iris Corp expects ongoing revenues from ID projects in Africa, Asia, the Asia-Pacific region, and North America.
Pindrop partners to secure
Pindrop has selected 128 Technology’s 128T Networking Platform to help its call center customers move their data quickly, simply, and securely into public cloud applications with its Tap to Cloud service.
The Smart Session Router from 128 Technology allows customers to monitor paths and direct sessions, creating a more efficient connection for getting voice and call data into the cloud, according to the announcement.
“While most organizations today have secured their physical and online channels, many have overlooked the most ‘innocent’ of them all – the phone, which is vulnerable to attacks like any other channel,” says Pindrop VP of Engineering Matt Garland. “We are excited to partner with 128 Technology and leverage the 128T Networking Platform to deliver reliable, high-performing contact center solutions that help our customers better authenticate callers in their contact centers.”
BIO-key to present at security investor forum
BIO-key chairman and CEO Michael DePasquale will present at the 16th Annual Imperial Capital Security Investor Conference on December 11, 2019 in New York.
The conference brings together a select group of security technology companies to present their positioning and strategic growth plans to investors and business leaders. More than 65 public and private security-focused companies and approximately 400 key investors and business leaders are expected to be in attendance.
“We look forward to highlighting our progress in election security and financial services, as well as other opportunities in the US and abroad, including the growth potential we see for our new BIO-key Africa subsidiary,” comments DePasquale.
BIO-key | biometrics | De La Rue | digital identity | IRIS Corporation | Kabn Systems | OneConnect | Pindrop | stocks | VSBLTY | Zwipe