Zwipe capitalized for biometric payment card commercialization with over $10M from private placement
Institutional investors and half a dozen primary insiders have invested NOK 96 million (approximately US$10.5 million) in Zwipe, capitalizing the company beyond the expected mass market launch of biometric payment cards utilizing its Zwipe Pay ONE platform. The proceeds will be used for further development and commercialization of Zwipe’s biometric technology, general operating costs and strategic investments, the company says.
The private placement consists of 6,381,315 new shares, purchased at a price of NOK 15 ($1.64) each.
Arctic Securities AS and Erik Penser Bank AB acted as joint bookrunners in an accelerated book building process following the close of markets on September 7, 2020. The placement was completed just over six hours after Zwipe announced it was contemplating the placement of new shares equalling 25 percent of its total outstanding shares.
“After completion of this private placement, Zwipe is funded through commercial launches in 2021 and beyond based on the current business plan and market assumptions,” states Zwipe CEO André Løvestam. “We now look forward to taking a leading role in the biometric payment space and embarking on a long journey of value creation for our customers, our shareholders and society at large.”
Zwipe now has 31,906,576 shares outstanding, with a par value of NOK 0.10 ($0.01)
Primary insiders participating in the funding round include Chairman Jörgen Lantto, Løvestam’s Energetic AS, CFO Lars Kristian Solheim, EVO of Strategy and Channels Bishwajit Choudhary, CTO Dr. Robert Mueller, and Zwipe America CEO Eric Mercer.
Lantto comments that the new funding will allow Zwipe to accelerate its commercial activities to meet the strong demand from smart card manufacturers and issuers for the company’s biometric payment card platform.
The company will hold an extraordinary general meeting on September 29, 2020 at 10:00 CET, with proposals to approve an increase in the company’s share capital to allocate shares to the chair of the board of directors, and equity with up to NOK 319,065.80 ($35,000) from 3,190,658 new shares, equivalent of 10 percent of share capital following the private placement’s completion. The company also plans to amend its rules to shorten the notice period for general meetings to 7 days.
Assuming the provisions are approved, the board plans to carry out another offering to company shareholders of up to 1 million shares, or NOK 15 million ($1.64 million) for those not included, for various regulatory reasons, in the private placement.
Zwipe recently announced earnings which, while modest overall, represent major gains compared to previous periods. The company has been rapidly partnering up in preparation for the anticipated mass commercial adoption of biometric payment cards.