SEALSQ secures $69 million from warrant exercise by institutional investors

GENEVA - SEALSQ Corp (NASDAQ:LAES), a developer of semiconductor and post-quantum technology products with a market capitalization of $678.51 million, announced Monday that institutional investors led by Heights Capital Management will exercise 15 million outstanding Class A warrants, generating approximately $69 million in gross proceeds for the company. The announcement comes as the stock has shown strong momentum, gaining over 27% in the past week according to InvestingPro data.

The institutional investors, who are existing warrant holders, will exercise the warrants at $4.60 per share to purchase an aggregate of 15 million ordinary shares, according to a company press release. InvestingPro analysis indicates that SEALSQ maintains a healthy balance sheet with more cash than debt and a strong current ratio of 7.38x.

As part of the agreement, the exercising holders will receive new Class C warrants to purchase up to 26.25 million additional ordinary shares. These new warrants will be immediately exercisable at $5.10 per share and will expire seven years from issuance.

The company also agreed to amend the existing warrants to provide for the issuance of ordinary shares or pre-funded warrants at the holder’s option upon exercise, if such exercise would exceed the holder’s beneficial ownership blocker election.

Maxim Group LLC acted as the warrant inducement agent, while both Cantor Fitzgerald & Co. and Maxim Group LLC served as financial advisors for the transaction.

The new warrants are being offered through an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission. A prospectus supplement related to the offering will be filed by the company.

SEALSQ focuses on developing semiconductor, PKI (Public Key Infrastructure), and post-quantum cryptography solutions designed to address security challenges posed by quantum computing advancements. While the company is not yet profitable, analysts expect sales growth in the current year. For deeper insights into SEALSQ and the semiconductor sector, including 12 additional ProTips and comprehensive financial analysis, visit InvestingPro.

In other recent news, SEALSQ Corp announced a joint venture with Kaynes SemiCon to establish SEALKAYNESQ Ltd in India. This new venture will focus on developing a semiconductor design and personalization center, emphasizing high-security solutions. SEALSQ will hold a 51% stake in this collaboration, while Kaynes SemiCon will own 49%, with governance equally shared under a five-member board. Additionally, SEALSQ has partnered with SEALCOIN AG to create quantum-resistant security solutions for AI systems, integrating post-quantum cryptography to safeguard against potential quantum computing threats.

In another development, AuthenTrend Technology is working on a proof-of-concept for a quantum-proof biometric security key using SEALSQ’s Quantum Shield QS7001 chip. This initiative aims to combine fingerprint verification with post-quantum cryptography to enhance security against quantum threats. Furthermore, SEALSQ’s CEO, Carlos Moreira, has joined the board of directors of WeCan Group SA, a Swiss company, as SEALSQ holds a 28.3% equity stake in the firm. These strategic moves reflect SEALSQ’s ongoing efforts to expand its influence in the high-security technology sector.

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