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CYBER1 Private Placement of Shares for €3,000,000
London United Kingdom - 23 October 2018 - Cyber Security 1 AB (Publ) (the "Company") ("CYBER1") (Nasdaq First North: CYB1), an international leader in Cyber security, GRC and PCI services today announces a private placement of new shares ("New Shares") through a directed new share issue to a qualified investor (the "Private Placement").
The issue of the 13,277,097 New Shares at a share price of €0.226 results in the Company having 292,235,506 issued shares from 278,958,409 previously, a dilution of 4.54% and an increase in share capital of €3,474.770380 to a share capital at today's date of €76,481.423632.
The investor is JFG Capital B.V. ("JFG" or the "Investor"), who has invested €3,000,000 for the 13,277,097 New Shares in the Private Placement.
The price of €0.226 per share for the Private Placement has been agreed in arms-length negotiation with the Investor, based on a 10-day average of the market share price at a 9% discount.
The Company intends to use the proceeds from the Private Placement to strengthen the working capital position of the Company, as well as to finance continued operations, further development of its cybersecurity service offerings, and corporate expansion.
The reason for conducting a directed new share issue via a Private Placement and thereby deviating from existing shareholders' preferential rights is as a result of a number of factors, including:- the view of the Company's Board of Directors that, given the current constitution of the Company's shareholders, a non-directed new share issue would run the risk of not being fully subscribed;
- the lower costs of the process (including underwriting) of the directed new issue;
- the timing advantage of a directed new issue, taking into account the current market fluctuations of the Company's share price; and
- the desire of the Board of Directors to bring a new, influential shareholder into the Company.
The Board has concluded that the reasons above collectively indicate that it is in the shareholders' interest, as well as that of the Company as a whole, that the issue of the New Shares is made with deviation from existing shareholders' preferential rights.
The Private Placement is subject to, inter alia, a resolution by the Board of Directors of the Company and is in line with the authorisation to issue new shares given to the Board of Directors at the AGM on the 28 June 2018.
Certified Adviser
Mangold Fondkommission AB is the Company's Certified Adviser.
Telephone: +46 (0)8 5030 1550
E-mail: info@mangold.se