NEXT Biometrics Group - Intention to file for bankruptcy
2026-10-09 08:00:00
Oslo, 9 October 2026: Reference is made to the stock exchange announcements
published by NEXT Biometrics Group ASA (the "Company") on 1 July 2026 and 31
July 2026, respectively. The Company's new Board of Directors (the "Board") was
complete and operational only from 16 June 2026. In the 1 July 2026
announcement, the Board announced that, following its initial strategic and
operational review, the Company's future strategy would be centered exclusively
on its next-generation Anywhere-in-Display technology, and that the Company
would seek to divest its loss-making legacy fingerprint sensor business -
including through the sale of its remaining sensor inventory and the sale or
licensing of related intellectual property, production equipment and know-how -
with the objective of using the proceeds to fund the continued development of
the Anywhere-in-Display project. In the 31 July 2026 announcement, the Company
announced that it had entered into a conditional convertible loan agreement in
an aggregate principal amount of NOK 13 million with certain existing
shareholders and the Company's CEO, providing the Company with additional
liquidity to pursue this strategy.
Since 1 July 2026, the Board and management have continued to implement the
updated strategy, including the extensive cost reduction programme referred to
in the above-mentioned announcements. The Company's annual operating cost run
rate has been reduced from approximately NOK 73 million (1 January 2026) to
approximately NOK 41 million, with the full cash effect of this reduction
expected from December. The Company has also identified further cost reduction
initiatives, planned for the coming weeks and months, to help bring the cost
base down to a more sustainable level. The Company has further been in active
dialogue with a number of external parties regarding the sale of its remaining
fingerprint sensor inventory and the sale or licensing of intellectual property,
production equipment and know-how related to its legacy business, and has
entered into non-binding letters of intent in this respect. However, none of
these processes has been concluded to date.
The Board has also been in dialogue with certain of the Company's larger
shareholders regarding further funding to bridge the Company through to year-end
2026, in order to provide time for the results of the ongoing prototype
development under the Anywhere-in-Display project - which are expected in
mid-December 2026 - to materialize. Given the inherent uncertainty associated
with the outcome of an ongoing research and development project, the Company's
larger shareholders have informed the Board that they are not, at this time,
prepared to provide such additional funding.
As a result, and notwithstanding the cost reductions achieved since July 2026,
the combination of the Company's historical cost structure, continued
severance-related cash outflows relating to the cost reduction programme and the
lack of revenue in the period has meant that the Company has not been able to
reduce its costs quickly enough, or to complete the divestment of its legacy
fingerprint sensor business and related intellectual property in time, to secure
the Company's funding on a sustainable basis. The Board remains of the view that
the strategy announced on 1 July 2026 was, and remains, the right strategy for
the Company; however, the Board has concluded that the Company has not had
sufficient time to execute this strategy before its capital resources were
exhausted.
In light of the above, the Board no longer believes that there is a reasonable
basis for assuming that the Company will be able to continue its operations as a
going concern absent new financing or a transaction that provides the Company
with sufficient liquidity. The Board has therefore resolved to prepare a
bankruptcy petition, with a view to filing the petition with the competent
district court on Monday, 12 October 2026.
Until the bankruptcy petition is filed, the Board and management will continue
to evaluate any strategic and financial alternatives that may become available
to the Company.
Information in this stock exchange announcement is considered to be inside
information pursuant to the EU Market Abuse Regulation and is subject to the
disclosure requirements pursuant to section 5-12 of the Norwegian Securities
Trading Act. This stock exchange announcement was published by Lars Bakklund,
Interim CFO, at the time and date stated herein.
xchange announcement was published by Lars Bakklund\,\
Interim CFO\, at the time and date stated herein.\