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Neonode Declares $13.9 Million Private Placement

By CIOReview | Monday, August 10, 2020
Dr. Urban Forssell, CEO of Neonode

Dr. Urban Forssell, CEO of Neonode

Neonode Inc. has announced that it has entered into definitive agreements with institutional and accredited investors, including insiders of the Company, for the private placement of $13.9 million of Neonode's common stock and convertible preferred stock (the "Private Placement").

FREMONT, CA: According to the terms of the Private Placement, Neonode has agreed to sell an aggregate total of 1,611,845 shares of common stock (the "Common Shares") for $6.50 per Common Share, and 3,415 shares of convertible preferred stock (the "Convertible Preferred Shares") along with a conversion price of $6.50 for every share and a given value of $1,000 every Convertible Preferred Share.

Ulf Rosberg and Peter Lindell, directors of Neonode (the "Directors"), and Urban Forssell, Chief Executive Officer of Neonode, have together agreed to purchase an aggregate of $3.05 million of the Convertible Preferred Shares in the Private Placement.

Besides, Neonode will issue 1,033 shares of Convertible Preferred Shares to the Directors to pay back $1 million of outstanding indebtedness owed to the Directors under the loan agreements dated June 17, 2020.

The Convertible Preferred Shares are convertible into an accumulative of 684,378 shares of common stock. The Convertible Preferred Shares will automatically change into common stock upon stockholder approval, which Neonode has agreed to seek at the earliest possible date. Neonode also seeks stockholder approval concerning the issuance of shares to the Directors and the Chief Executive Officer according to Nasdaq's listing rules.

Neonode has also settled to file, within thirty days, a registration statement with the SEC to register the resale of the Common Shares as well as the shares of common stock hiding the Convertible Preferred Shares.

Neonode expects to get done with the Private Placement on or about August 7, 2020, subject to the customary closing conditions' fulfillment.

Craig-Hallum Capital Group LLC is posing as exclusive placement agent in connection with the offering.