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Investing.com -- Sequans Communications SA (NYSE:SQNS) stock soared 44.8% following the successful closing of its previously announced debt and equity private placement offerings totaling $384 million to implement a bitcoin treasury initiative.
The French 5G/4G IoT semiconductor and module developer plans to use all net proceeds from the offering to purchase bitcoin, marking the first phase of the company’s bitcoin treasury strategy. The financing included the sale of 139.4 million American Depositary Shares and warrants at $1.40 per ADS, contributing $195 million to the gross proceeds.
Additionally, Sequans issued $189 million in secured convertible debentures due July 2028, bringing total gross proceeds to approximately $376 million. If all common warrants are exercised in full, the company would receive an additional $57.6 million, which would also be primarily used to purchase bitcoin.
"With the closing of this financing, we are excited to begin executing our bitcoin treasury strategy," said Georges Karam, CEO of Sequans. "We believe bitcoin’s unique properties will enhance our financial resilience and create long-term value for our shareholders. Our intention is to continue acquiring bitcoin in the future, using excess cash generated from our core business operations and additional proceeds."
The company expects to partner with Swan Bitcoin to implement its strategy, leveraging the platform’s expertise for secure execution and governance. Northland Capital Markets and B. Riley Securities served as joint lead placement agents for the offering, with Yorkville Securities also participating as a placement agent.
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