WISeKey International To Raise Debt Via Convertible Note Sales To Institutional Investors

  • WISeKey International Holding Ltd WKEY inked a convertible notes subscription agreement of up to $44 million and warrant agreement with institutional investors.
  • WISeKey will issue an initial convertible note worth $22 million for subscription by the investors. Additionally, WISeKey has the right to request the investors to subscribe for four additional notes tranches, each worth $5.5 million.
  • The investors need to subscribe to each additional note tranche when the daily VWAP for Issuer Shares remain at or above 130% of the applicable fixed conversion price for a period of 30 consecutive trading days immediately preceding the date on which the issuers submit the subscription notice to the investor.
  • Each of the convertible notes under both agreements has a maturity date of 24 months and carries interest at a rate of 6% p.a.
  • The investors can convert each calendar month a conversion amount of up to 12.5% of the initial principal amount of all issued tranches.
  • The investors are required to convert all outstanding notes at maturity at the applicable conversion price.
  • The fixed conversion price is CHF4 for the first 25% of the initial notes’ tranche. CHF5 for the second 25%, CHF6 for the third 25%, and CHF7.5 for the final 25%.
  • The funding provides WISeKey access to flexible financing at a reasonable cost and helps to continue financing the growth of its operations in countries where the company already operates, CEO Carlos Moreira said.
  • Price action: WKEY shares traded lower by 3.10% at $7.24 on the last check Tuesday.
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