Next Biometrics raising $7 million and sets new targets, Idex Biometrics receives tax relief
Next Biometrics has announced that a private placement of 25 million shares at a subscription price of NOK 2.00 (US$0.21) each has successfully raised NOK 50 million ($5.1 million), as the company sets new targets in a continuing transition towards fully commercializing its fingerprint technology.
The placement had a minimum application and allocation amount of the NOK equivalent to €100,000 (roughly $111,200), and both opened and closed this week. The placement was fully underwritten by existing shareholders and new investors. Completion of the private placement is conditional on a vote at an extraordinary general meeting, which was announced for June 19, 2020, but with the participation of existing investors and support of Next’s largest shareholder, Greenbridge Investment, makes its approval highly likely.
After the registration of the new share capital, the company has share capital of NOK 67.9 million ($7 million) with shares at a par value of NOK 1 ($0.10) each.
The placement was well-received enough that a subsequent offering of 10 million shares at the same price will also be put to a vote at the extraordinary general meeting, which will be held on June 19, 2020 at 10:00 CET .
Next Biometrics also notes in the announcement that its board has started implementing measures to make the company more commercially-focused, with a target run rate of NOK 150 million ($15.4 million) in annual revenue by late-2021. The focus will include sales for notebooks, Aadhaar programs, and new FAP20 products for POS, government ID and access control applications. Next and Credence ID struck a deal earlier this month for lower-cost mobile devices with FAP20 sensors.
The company aims to reach a gross margin of between 35 and 40 percent by late 2021, and an annual opex run rate reduced to NOK 60 million ($61.7 million) by year-end 2020 with a 60 percent-completed cost reduction program.
Idex Biometrics granted $650K in R&D tax relief
Idex Biometrics has received tax relief amounting to $650,000 for research and development activities in the U.S. and UK, mostly relating to 2019 activities, according to a company announcement.
The tax relief is on top of previously-announced refunds received in March from the UK and amounting to $850,000, the company says.
The company says it also has significant research and development tax credit carryforwards in Norway, the U.S. and UK to apply against future profits.