Elliptic Laboratories successfully places NOK 125 million private placement

The Private Placement attracted very strong interest from Norwegian, Nordic and international high-quality institutional investors and was significantly oversubscribed.

OSLO: Elliptic Laboratories AS has announced a successful private placement raising gross proceeds of NOK 125 million through the allocation of 833,333 new shares at a subscription price of NOK 150 per share.

The Private Placement attracted very strong interest from Norwegian, Nordic and international high-quality institutional investors and was significantly oversubscribed.

Three cornerstone investors were allocated shares for NOK 65 million: (i) Handelsbanken Fonder AB: NOK 25 million; (ii) Aktia Asset Management: NOK 20 million; and (iii) Danske Capital: NOK 20 million.

The Company also received pre-commitments for more than NOK 20 million from existing shareholders including Passesta AS, Alden AS and MP Pensjon.

The net proceeds from the Private Placement will primarily be used towards strengthening the Company’s balance sheet and working capital; increase the Company’s staff and product development; repay bank debt of NOK 25 million as well as for general corporate purposes.

The Private Placement and the issuance of the new shares was resolved by the Elliptic Laboratories’ Board of Directors on 7 October 2020. Following the Private Placement, the Company will have 9.584 million shares outstanding.

Members of the Elliptic Laboratories ‘ board of directors and management have entered into customary lock-up arrangements with the Managers that will restrict, subject to certain exceptions, their ability to, without the prior written consent of the Managers, sell or dispose of shares for a period of 6 months.

Completion of the Private Placement is subject to (i) payment being received for the new shares, (ii) registration in the Norwegian Register of Business Enterprises of the share capital increase pertaining to the Private Placement and (iii) the Company’s application for admission to trading on Merkur Market having been approved by Oslo Børs.

Allocation to investors will be communicated on or about 8 October 2020. The Private Placement will be settled by the Managers on a delivery-versus-payment basis on or about 15 October 2020 following the registration of the new share capital in the Norwegian Registry of Business Enterprises and the issuance of the new shares in VPS. The delivery-versus-payment settlement in the Private Placement is facilitated by a pre-funding agreement between the Company and the Managers.

The Company has applied for, and will, subject to the necessary approvals from the Oslo Stock Exchange, list the shares of the Company on Merkur Market. The first day of trading on Merkur Market is expected to be on or about 16 October 2020.

Carnegie AS and SpareBank 1 Markets AS are acting as Joint Bookrunners in connection with the Private Placement and advisors in connection with the Listing. Wikborg Rein Advokatfirma AS acted as legal advisor to the Company.

Elliptic Labs was founded in 2006 as a research spin-off from Norway’s Oslo University, and is now a global enterprise targeting the smartphone, laptop, IoT, and automotive markets. The Company’s patented AI software combines ultrasound and sensor-fusion algorithms to deliver intuitive 3D gesture and presence sensing experiences. Its scalable AI Virtual Smart Sensor Platform creates software-only sensors that are sustainable, eco-friendly, and already deployed in over 100 million devices.

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