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Smart Eye Completes Directed Share Issue of SEK 189 Million

By CIOReview | Monday, October 12, 2020

Smart Eye resolves a directed share issue at a subscription price of SEK 125 per share.

FREMONT, CA: The Board of Directors of Smart Eye AB has depended on the authorization provided by the Company's Annual General Meeting, resolved on a directed share issue of 1,511,898 new shares at a subscription cost of SEK 125 per share, which states that the Company receives SEK 188,987,250 before the transaction costs. The subscription price in the problem has been kept via an accelerated book-building procedure and corresponds to a discount of 2.9 percent compared to the volume-weighted average price on Nasdaq First North Growth Market on 5 October 2020. The interest in the issue was considerable, from both existing shareholders as well as new investors

The market for Automotive Solutions remains strong, primarily as a result of the additional regulatory and legislative activities. The Company stays as a leader in the global competition for design wins depending to eye-tracking software that is no longer confined to premium cars but increasingly moving towards the mass market with imminent high-volume models. This is manifested in a huge number of design wins won during the last year. Various procurement processes are underway in Asia, Europe, and North America and are expected to be determined in the coming two years. Smart Eye thinks of defending its market-leading position. Smart Eye sees a requirement to invest further to capitalize on new and expected design altogether wins, maintain the Company's leading role, and maximize its long-term growth potential in all business areas.

"Smart Eye comes from a period of sheer success in the DMS market. Today's issue of SEK 189 million ensures our ability to deliver to the many won global automotive projects while strengthening our competitiveness ahead of the coming wave of new procurements. Using eye tracking to save lives is nowadays a given in the automotive industry," states Martin Krantz, CEO of Smart Eye.

The leading cause for deviating from the shareholders' preferential right is to make sure that the most time and cost-effective financing as possible of the continued scale-up of the business, to equip the Company to be able to engulf its financing requirements until the obtained, and potentially additional customers start to generate the needed massive revenues to meet the Company's costs. As the subscription price in the issue has been set via a book-building procedure, the Board of directors assesses how the subscription price reflects the current market conditions and demand.

The issue consists of dilution of approximately 9.1 percent of the share capital concerning the number of shares in Smart Eye after the problem, via an increase in the number of outstanding shares by 1,511,898 15,118,984 to 16,630,882 and a share capital increase by SEK 151,189.8 from SEK 1,511,898.4 to SEK 1,663,088.2.

Additionally, the board members and individual members of the management team, many are large shareholders in Smart Eye, have undertaken to, the subject to certain exceptions, not sell shares in Smart Eye for 180 calendar days past the settlement date. The Company has also agreed to a commitment, with customary exceptions, not to carry out any additional issuances for 180 calendar days after the settlement date.