Irisity AB (publ) has, subject to the approval of the annual general meeting, decided to carry out a directed share issue of approximately 17.5 MSEK to its new CEO Keven Marier
Irisity AB (publ) ("Irisity" or the "Company") has, subject to the approval of the annual general meeting, decided on a directed issue of 3,127,608 shares at a subscription price of 5,60 SEK per share to the Company's CEO Keven (the "Directed Issue"). Irisity will receive no more than approximately 17.5 MSEK which is intended to be used to strengthen the Company's working capital and financial flexibility.
Keven Marier, who took over as CEO of Irisity on March 13, 2023, has expressed an interest in strengthening his commitment to the Company through a larger investment where the invested amount is added to the Company. The board has assessed that the Directed Issue to Keven Marier increases the CEO's motivation and commitment to the Company, while the issue proceeds strengthen Irisity's working capital and financial flexibility to enable continued growth.
The subscription price has been determined following an agreement between the board and Keven Marier and it is the board’s assessment that the subscription price is on market terms as it corresponds to the weighted average of the Irisity share during the 5 of trading days that preceded the board’s decision on the Directed Issue. The agreed subscription price is at a premium of +12% to last closing price.
The reason for the deviation from the shareholders' preferential right is that the company's board is of the opinion that Keven Marier's motivation and commitment as CEO increases if he is offered the opportunity to become a shareholder in the company. Furthermore, the Directed Issue means that the company is supplied with working capital in a fast and cost-effective manner. Overall, it is the board's assessment that the proposed directed new share issue will be beneficial to the company's shareholders through an increased share value.
The Directed Issue entails a dilution effect of 7,55 percent of the number of shares and votes in the Company. Through the Directed Issue, the number of outstanding shares increases by 3,127,608 shares, from 38,302,328 shares to 41,429,936 shares. The company's share capital will increase by 281,485 SEK from 3,447,209 SEK to 3,728,694 SEK.
Considering that the board's decision on the Directed Issue is subject to Chapter 16 of the Swedish Companies Act, the decision is conditional on it being approved by the annual general meeting on April 27, 2023 through a decision supported by shareholders with at least nine tenths (9/10) of both the votes cast and the shares represented at the AGM.
The directed share issue provides an opportunity for the Company to strengthen its financial position and demonstrate the CEO’s confidence and commitment in the future growth plans. “With the funds raised from this share issue, Irisity can accelerate our sales and marketing expansion plans” says Keven Marier – Irisity’s CEO.
”Irisity’s new CEO Keven Marier brings a wealth of experience in this industry and his decision to invest a significant amount into the Company is a vote of confidence and a clear demonstration of his strong belief in the Company’s business and his commitment to driving our growth and success” says Lennart Svantesson – Irisity’s Chairman.
För further information:
Lennart Svantesson, Irisity Chairman of the Board
Phone: +46 73-311 00 11
This information is information that Irisity AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 14:45 CET on March 23, 2023.
About Irisity
Irisity AB (publ) is a world-leader in AI-powered video analytics solutions for enhanced safety and security. As of October 13, 2021, Agent Vi is part of Irisity. Founded in 2006, Irisity has offices in Sweden (HQ), Israel, North and South America, UAE, Denmark, Japan and Singapore. The combined company is serving a network of integrators, distributors, and technology partners globally.
The Irisity AB (publ) share is listed on Nasdaq First North Growth Market, with the ticker IRIS, Certified Adviser: Erik Penser Bank AB +46 8 463 83 00 certifiedadviser@penser.se