Neonode Announces $14 Million Registered Direct Offering

Rhea-AI Summary

Neonode Inc. (NASDAQ: NEON) announced a registered direct offering of 1,808,000 shares at $7.75 each, totaling $14 million. The offering, set to close around October 25, 2021, aims to fund sales and marketing efforts, boost production of Touch Sensor Modules, and support general corporate needs. Pareto Securities is the sole placement agent. The offering is conducted under an effective shelf registration statement with the SEC. Investors are advised to review the accompanying prospectus for detailed information.

Positive

• Plans to utilize proceeds for increased marketing efforts to enhance awareness and demand for products.
• Funding expected to support growth in Touch Sensor Module production volumes.

Negative

• The registered direct offering may lead to shareholder dilution.

STOCKHOLM, Oct. 21, 2021 /PRNewswire/ -- Neonode Inc. (NASDAQ: NEON), today announced it has agreed to place with certain Swedish and European investors 1,808,000 shares of its common stock at a purchase price of $7.75 per share in a registered direct offering. The closing of the offering is expected to occur on or about October 25, 2021, subject to the satisfaction of customary closing conditions.

The Company plans to use the net proceeds from the offering for continued investments in sales and marketing to create greater awareness and drive demand for contactless touch and Neonode's Touch Sensor Modules, for supporting the expected growth of the Company's Touch Sensor Module production volumes, and for general corporate and working capital purposes.

Pareto Securities is acting as sole placement agent for the offering.

This offering is being made pursuant to an effective shelf registration statement on Form S-3 (Registration No. 333-255964) previously filed with the U.S. Securities and Exchange Commission (the "SEC"). A prospectus supplement describing the terms of the proposed offering will be filed with the SEC and will be available on the SEC's website located at http://www.sec.gov. Electronic copies of the prospectus supplement may be obtained, when available, from Pareto Securities at clientservice.se@paretosec.com. Before investing in this offering, interested parties should read in their entirety the prospectus supplement and the accompanying prospectus and the other documents that the Company has filed with the SEC that are incorporated by reference in such prospectus supplement and the accompanying prospectus, which provide more information about the Company and such offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

For more information, please contact:

CONTACT:

Investor Relations
David Brunton
E-mail: david.brunton@neonode.com 

Chief Financial Officer
Fredrik Nihlén
E-mail: fredrik.nihlen@neonode.com

Chief Executive Officer
Urban Forssell
E-mail: urban.forssell@neonode.com

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Neonode Announces $14 Million Registered Direct Offering

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SOURCE Neonode

FAQ

What is the share price in Neonode's recent offering?

Neonode's recent offering price is $7.75 per share.

How much capital is Neonode raising through its direct offering?

Neonode is raising a total of $14 million through the offering.

When is Neonode's offering expected to close?

The offering is expected to close on or about October 25, 2021.

What will Neonode use the proceeds from the offering for?

The proceeds will be used for sales and marketing, Touch Sensor Module production, and general corporate purposes.

Who is the placement agent for Neonode's offering?

Pareto Securities is acting as the sole placement agent for the offering.

Where can investors find more information about Neonode's offering?

Investors can find more information in the prospectus supplement to be filed with the SEC.