Eyeonid Group AB (publ) has called for Tranche 3 from the European Select Growth Opportunities Fund, free warrants to existing shareholders

Eyeonid Group AB (“Eyeonid Group”) has called for a third tranche of SEK 10 million within the framework of the financing agreement with European Select Growth Opportunities Fund (the “Investor” or “ESGO”) announced in a press release on January 31, 2018. The transaction will take place through the issuance of convertible notes with related warrants (TO4). Eyeonid Group has now called upon SEK 50 million out of up to SEK 100 million of commitment from ESGO.

In conjunction with the transaction, Eyeonid will also issue free identical warrants (TO4) to existing shareholders, to protect them against dilution (the “Shareholders Warrants”). Shareholders Warrants will be issued to Eyeonid Group's subsidiary Eyeonid Intressenter AB and will then be transferred to Eyeonid Group's shareholders. In the Tranche 3, one (1) warrant will be awarded free of charge for twenty five (25) shares held on the record date. Reconciliation day is estimated to be approximately one week after the warrants have been registered with Bolagsverket. The company will publish a press release on the final record date after such registration.

“If 2018 became the year when we significantly increased our sales activities and where our leadspipe became rather maximized, 2019 is all about to taking these customer dialogues into signed agreements. The year has started very well, and we are currently running lots of parallel dialogues forward with potential customers, while we are working hard to make communicated LOIs into final agreements. In order to ensure continued high progress, we have decided to call on another Tranche, but this time with an amount reduced in half compared to earlier. The good relationship we have with our financing partner, ESGO, and the flexibility they have shown in terms of the conditions underlying our right to invoke a new Tranche, guarantees a continued good cooperation.” Says Daniel Söderberg, CEO Eyeonid Group.

Facts about the transaction:

This Tranche 3 is implemented as a directed issue of SEK 10 million to the Investor through the issue of convertibles notes (“Notes”) with related warrants (“Warrants”).

Upon full exercise of the arrants and shareholders warrants from Tranche 1, Tranche 2 and this Tranche 3, Eyeonid Group will receive approximately SEK 69 million in addition (SEK 27.5 million from each of Tranche 1, Tranche 2 and 13.9 million from Tranche 3).

In addition to the Tranches 1, 2 and 3 Eyeonid Group may raise an additional SEK 50 million through the Notes of subsequent Tranches (plus up to approximately SEK 137.5 million upon full exercise of all warrants and shareholder warrants, provided all Tranches are claimed by Eyeonid) through similar targeted issues of Notes with related Warrants during the next 24 months, at Eyeonid’s discretion.

On Wednesday, January 30, 2019, the Board of Directors of Eyeonid Group approved the execution of the transaction with the Investor, and resolved the issue of the Notes, Warrants and Shareholder Warrants of Tranche 3, as part of the emission authorization granted by the Annual General Meeting of June 15, 2018.

Notes

• The principal amount per Note is SEK 100,000.
• The Notes are interest-free.
• The maturity of the Notes is 12 months from the date of registration of the Board's decision on the issue of the Notes with Bolagsverket.
• Eyeonid Group has the right to choose between repaying with cash or issuing shares upon request of conversion. This enables Eyeonid Group to reduce potential dilution effects resulting from the Notes.
• The conversion price corresponds to the reference price with a 7.5% discount (the reference price being the lowest daily volume weighted average price (VWAP) over the previous 15 trading days, excluding days during which the Investor will have been trading on the market.

Warrants (TO4)

• The Warrants (TO4) have a maturity of three (3) years from the date of registration of the Board's decision on the issue of the Warrants with Bolagsverket.
• Each Warrant entitles the holder to subscribe for one (1) new share (subject to standard adjustments under their terms and conditions) in Eyeonid Group at a strike price of SEK 4.02 (corresponding to 115% of the VWAP during the 15 trading days preceding the date of the Request, i.e. January 30th 2019).
• Under this Tranche 3, 1,243,781 Warrants (TO4) are issued to the Investor and 2,221,051 Shareholder Warrants (TO4) are issued to the shareholders.
• Shareholder Warrants will have the same characteristics as the Warrants and will be listed on the NGM Nordic MTF together under the name "Eyeonid Group TO4". Exercise periods for the Warrants to subscribe new shares will be announced separately.

The terms of the Notes, Warrants (TO4), Shareholder Warrants (TO4) and the details of the conversions of notes will be published and continuously updated on Eyeonid Group’s website https://www.eyeonid.com/investor/documents.

This information is information that Eyeonid Group AB (publ) is obliged to disclose under the EU Market Abuse Regulation. The information was provided, through the contact of the above contact person, for publication on the 31st of January 2019. 

For any further information please contact:
Henrik Sundewall, Chairman of the board, Eyeonid Group AB (publ)
Phone: +46 076 877 00 00
or
Daniel Söderberg, CEO, Eyeonid Group AB (publ.)
Phone: +46 073 422 79 30
Mail: daniel.soderberg@eyeonid.com
www.eyeonid.com

Eyeonid was founded in 2014 and has since its inception developed a technical complex and advanced platform for proactive ID protection services. The company's service monitors and alerts customers when sensitive, private and corporate digital information, such as login credentials, credit card numbers and social security numbers, are found at unauthorized sites on the internet, whereupon the customer can act and protect himself.