IDEX Biometrics ASA - Private Placement successfully placed

Core Viewpoint - IDEX Biometrics ASA has successfully completed a private placement of new shares, raising NOK 55 million, which will be utilized for commercialization, product development, and working capital needs [3][4]. Private Placement Details - The private placement was significantly oversubscribed, leading to an increase in the offering size to NOK 55 million, with 33,333,333 new shares issued at NOK 1.65 per share [3][16]. - The private placement is divided into two tranches: Tranche 1 consists of 28,012,655 shares, while Tranche 2 includes 5,320,678 shares, pending approval at an extraordinary general meeting [8][12]. Financial Performance - For Q1 2024, revenues were USD 0.4 million, down from USD 1.2 million in Q1 2023, reflecting a shift from component to solution sales [7]. - The gross margin for Q1 2024 was reported at 36%, with operating expenses at USD 6.1 million, a decrease from USD 7.7 million in the same quarter of the previous year [7]. - The cash balance as of March 31, 2024, was USD 3.0 million [7]. Operational Efficiency - The company aims to reduce quarterly operating expenses to below USD 4.0 million by the end of June 2024 and below USD 3.0 million by the end of September 2024, targeting approximately USD 2.5 million in quarterly cash operating expenses [5]. Market Developments - The company announced several bank launch partnerships in Asia and Europe, including DenizBank in Turkey and Mutual Trust Bank in Bangladesh, as well as new market entries in South Asia [6]. - The company is expanding its biometric solutions, including mobile enrollment SDKs and partnerships with card manufacturers [6]. Future Offerings - A subsequent repair offering of new shares at the same offer price will be directed towards existing shareholders who were not allocated shares in the private placement, with a maximum amount of NOK 13.2 million [17].