GENEVA - SEALSQ Corp (NASDAQ: LAES), a semiconductor and post-quantum technology firm, with a current market capitalization of $52.9 million, announced today it will raise approximately $25 million through a securities purchase agreement. The company plans to issue 13,157,896 ordinary shares at a price of $1.90 each to several institutional investors. The offering comes as the stock has shown remarkable momentum, delivering a 347% return over the past week alone.InvestingPro data reveals the company is quickly burning through cash, making this fundraising crucial for its operations. InvestingPro subscribers have access to 14 additional key insights about SEALSQ's financial health.
The proceeds from this offering are earmarked for the development and deployment of SEALSQ's next-generation post-quantum semiconductor technology and ASIC capabilities, particularly within the United States. Additionally, the funds will support general corporate purposes and working capital. While the company maintains a healthy current ratio of 3.58, indicating strong short-term liquidity, its negative EBITDA of -$12.18 million underscores the importance of this capital raise.
Maxim (NASDAQ:MXIM) Group LLC is serving as the sole placement agent for the transaction, which is expected to close tomorrow, subject to customary closing conditions. The offering is pursuant to an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission on November 27, 2024.
SEALSQ specializes in integrated solutions based on semiconductors, PKI, and provisioning services, catering to a wide array of applications from multi-factor authentication to industrial automation. The company is also developing hardware and software products for post-quantum cryptography, a field gaining importance as quantum computing advances.
The company's announcement contains forward-looking statements regarding its strategy, financial performance, and market opportunities. These statements are subject to risks and uncertainties, and actual results could differ materially.
This news is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The offering will only be made through a prospectus supplement and related prospectus, which can be obtained from the SEC's website or directly from Maxim Group LLC when available. For comprehensive financial analysis and real-time insights, investors can access detailed metrics and forecasts through InvestingPro.
In other recent news, SEALSQ Corp has made significant strides in the technology sector. The company announced the launch of the INeS Box, a product designed to enhance digital identity provisioning for connected devices. Meanwhile, SEALSQ also made progress in developing custom application-specific integrated circuits (ASICs) across key markets, such as India, Spain, and Saudi Arabia. The company is focusing on ASICs to secure a substantial position in the surging semiconductor market.
SEALSQ Corp's first half of 2024 financial results showed revenues of $4.8 million, a decrease from the previous year. However, the company maintains expectations for revenue growth in the second half of 2024 and 2025, supported by a $71 million pipeline for legacy products. Maxim Group revised SEALSQ Corp's revenue estimates for 2024 and 2025 to $12.5 million and $24.2 million, respectively, while adjusting the company's price target from $2.25 to $1.75, but maintaining a Buy rating on the stock.
SEALSQ Corp has also announced the development of Internet of Payment (IoP) integrated semiconductor solutions, enabling IoT devices to conduct secure and autonomous financial transactions. Furthermore, the company is preparing to release engineering samples of its QS7001 Quantum-Resistant secure chips by the end of the year. These recent developments underscore SEALSQ Corp's commitment to innovation and security in the digital age.
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