Sequans to raise $384 million for bitcoin treasury initiative

PARIS - Sequans Communications S.A. (NYSE:SQNS), currently trading at $1.93 with a market capitalization of $49 million, announced Monday it is establishing a bitcoin treasury initiative while continuing its core semiconductor cellular IoT business operations. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt.

The company has entered into agreements to raise approximately $384 million through private placement offerings, consisting of $195 million in equity securities and $189 million in convertible secured debentures. This funding comes as InvestingPro analysis shows the company has been quickly burning through cash, despite maintaining a healthy current ratio of 1.94.

"Our bitcoin treasury strategy reflects our strong conviction in bitcoin as a premier asset and a compelling long-term investment," said Georges Karam, CEO of Sequans, in a press release statement.

For this initiative, Sequans expects to partner with Swan Bitcoin, a provider of bitcoin treasury management solutions.

The private placement includes the sale of 139,285,714 American Depositary Shares (or pre-funded warrants) at $1.40 per ADS, along with common warrants. The offering also includes secured convertible debentures with a principal amount of $189 million and additional common warrants.

Northland Capital Markets and B. Riley Securities are serving as joint lead placement agents for the offering, with Yorkville Securities also participating as a placement agent.

The transaction is expected to close around July 1, 2025, subject to shareholder approval at the company’s general meeting on June 30 and other customary closing conditions. The debt placement is contingent upon completion of the equity placement for gross proceeds of at least $195 million.

The securities are being offered through a private placement under Section 4(a)(2) of the Securities Act and have not been registered under the Securities Act or applicable state securities laws.

Sequans Communications specializes in wireless cellular technology for the Internet of Things, offering solutions including chips, modules, and services for IoT connectivity.

In other recent news, Sequans Communications S.A. reported its preliminary financial results for the first quarter of 2025, showing a 33.6% increase in revenue to $8.1 million compared to the same period in 2024, despite a sequential decline from the previous quarter’s $11.0 million. The company also recorded a net loss of $7.3 million, an improvement from the previous year’s first-quarter loss of $11.8 million. Sequans is currently addressing a non-compliance notice from the New York Stock Exchange due to its average global market capitalization and stockholders’ equity falling below the required $50 million. The company has 90 days to submit a plan to regain compliance, which, if accepted, will allow its shares to continue trading during a nine-month cure period. Previously, Sequans successfully returned to compliance with NYSE standards in 2024 by executing strategic actions, including a $200 million transaction and adjusting its share ratio. Looking ahead, Sequans anticipates second-quarter revenue between $8 million and $9 million, with expectations for accelerated revenue growth in the latter half of 2025 and into 2026. CEO Georges Karam highlighted progress in their Monarch 2 projects and an expanded revenue pipeline. The company remains focused on innovation and growth in the cellular IoT sector, although it acknowledges potential risks and uncertainties in its forward-looking statements.

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