WISeKey, a leading Swiss cybersecurity and IoT company, today announced that it has entered into a Standby Equity Distribution Agreement with a fund managed by Yorkville Advisors Global. It provides WISeKey with the necessary financial flexibility to continue investing on the US operation expansion.
Under the terms of the SEDA, Yorkville has committed to provide WISeKey, upon a draw-down request by WISeKey, up to CHF 50 million in equity financing over a three-year period in tranches of up to CHF 1 million each or, if WISeKey provides a sufficient number of Class B Shares through share lending, up to CHF 5 million each.
WISeKey will make its draw-downs either by using authorized share capital on a non-preemptive rights basis or treasury shares. The purchase price will be 93% of the relevant market price at the time of the draw-down, determined by reference to a five-day trading period following the draw down request by WISekey. WISeKey will pay a one-time commitment fee of CHF 0.5 million, at WISeKey's election either in cash or Class B Shares.
"The SEDA provides us with the necessary financial flexibility to continue investing on our US operation expansion, which is key at this stage to further expand our market penetration and revenue generation," said WISeKey CEO Carlos Moreira.
(Press release)
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