Liking private placements more than other debt, Idex Biometrics sells 150M shares
Executives at biometrics and authentication vendor Idex has signed a two-tranche private placement raising a total $15 million by selling 150 million shares at 10 cents each.
This is one of several similar private placements signed by Idex going back to 2016.
A private placement is the sale of equity shares or corporate debt (a bond) to a predetermined investor or investment group. It is an alternative to an initial public offering, but there are fewer regulations and the company selling the shares can retain more control than with an IPO.
In a statement, Idex said it will use the new funds primarily to create more market momentum. Some will go toward maintaining a required level of working capital and, the catch-all general corporate purposes.
A first tranche is equal to 10 percent of outstanding shares. The second, smaller amount is expected to be paid in December.
Executives said that choosing a private placement, they raise the funds at a 2 percent discount compared to the closing price of shares November 16 on the Oslo exchange.
The board decided not to offer a repair offering for shareholders who did not participate because the placement and its structure benefited the company enough to make up for non-participation.
All shareholders are probably aware that Idex just booked a $2 million order for fingerprint sensors to be used with Idemia biometric payment cards.