Hiddn Solutions ASA - Quarterly Report - Q4 2016

Enclosed please find Hiddn Solutions ASA’s report for the 4th quarter 2016. The 4th quarter report and company updates will be presented today, Tuesday 28 February 2017 at 0900 CET in the company's office at Cort Adelers gate 17, 7th floor.

The Q4 presentation will be published on Hiddn’s homepage (www.hiddnsolutions.com).

Highlights from Q4 and subsequent events:

Reversed de-listing and subsequent expansion into the hardware encryption market
On 14 November 2016, an extraordinary general meeting ("EGM") resolved to reverse the liquidation and de-listing of the Company. On 25 November 2016, the Company entered an agreement to acquire Hiddn Security AS by way of issuing consideration shares in the Company. On 16 December 2016, another EGM approved the acquisition and on 29 December 2016, the acquisition of 90.5% of Hiddn Security AS was completed. 

New Board of Directors, corporate management and additions to the group structure
Following the reversal of the de-listing, Hiddn Solutions ASA decided to recruit Cecilie Grue, Ola Røthe and Hege Anfindsen to its Board of Directors to be better suited to handle the acquisition and related matters. The Board was further strengthened with the recruitment of its current Chairman, Øystein Tvenge, in January 2017. Hiddn also entered a management agreement with SLM Partners AS for the services as inter alia Chief Executive Officer to ensure sufficient competency in strategic management and operation of exchange listed companies. As a part of the continuing process to commercialise Hiddn's product suite, the Company established a new subsidiary, Hiddn Solutions AS, which will carry out activities relating to marketing, sales and distribution of products and thereby seek to increase its market presence through a significant ramp-up of sales and marketing activities.

Establishment of an advisory board with unique competency
The Company has established an advisory board consisting of individuals with broad competency within digital espionage, economic crime, white collar crime as well as industrial scaling and international commercialization of Norwegian technology. The advisory board will serve as an advisory function to the Chief Executive Officer and the Board of Directors in connection with the Group's business development, however, without any formal corporate function in the Company per se.

Successful completion of rights issue
On 13 January 2017, an EGM resolved to carry out a rights issue of up to 20,761,245 shares. The subscription period commenced upon approval of the Company's Prospectus by the Norwegian Financial Authorities on 27 January 2017. The rights issue closed on 10 February 2017, oversubscribed by approximately 50%. Due to the high demand and based on an authorisation granted by the EGM, the board decided to issue additional offer shares. In total 24,116,564 offer shares were issued yielding gross proceeds of NOK 69.7 million, providing the Company with sufficient funds to follow an expansive business development plan focused on growing efforts within sales and marketing as well as R&D.

Renewed certification of coCrypt from the Norwegian National Security Authority
Hiddn received renewed approval of the USB flash stick (coCrypt) at level Restricted and continued to deliver the USB flash stick to the Norwegian military. The official approval confirms that classified information can be stored, marked, and dealt with according to rules and regulations when using Hiddn’s coCrypt, and that the coCrypt can be dealt with as “unsecured” when powered off.

Certification of SafeDisk at level Confidential by the Dutch National Security Authority (NBV)
Hiddn has made significant progress in certification and approval processes with leading national approval authorities in Europe and the US for its hardware products. In November 2016, a major milestone was met when Hiddn's SafeDisk was approved by the NBV allowing relevant public organisations in the Netherlands to utilise the product at level Confidential. Shortly after having received the Dutch approval, Hiddn completed the first delivery to the Dutch Government.

Launch of new product line – encrypted USB Drive
Based on market feedback and enquiries from existing and prospective customers, Hiddn is in the process of prototyping a new USB-enabled external hard drive with built-in hardware encryption and the ability to operate with an independent operating system, allowing the user to operate securely through any PC. The engineering design is based on Hiddn's existing encryption technology. The USB drive will provide large storage capacities and fast transfer rates coupled with a high degree of data security all in a small form factor cabinet. The Company expects to complete delivery of the initial units during the second half of 2017.

For further information, please contact CEO Tore Viana-Rønningen on telephone +47 911 08 693

Oslo, 28 February 2017

Hiddn Solutions ASA

About Hiddn Solutions ASA
Hiddn Solutions ASA is a public limited company situated in Oslo, Norway, listed on the Oslo Stock Exchange under the ticker HIDDN. The Company’s operating activities are reported through the subsidiaries Hiddn Security AS and Hiddn Solutions AS (together named “Hiddn”).

Hiddn is supplying impenetrable proprietary hardware-based authentication and encryption products to military, governmental, institutional, and corporate clients with further potential to scale into the retail market by building on and benefiting from the experience and competence of the management and employees in Hiddn.

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