Neonode Announces Closing of $13.9 Million Private Placement
On August 10, 2020, Neonode announced the closing of a private placement totaling $13.9 million. The company issued 1,611,845 shares of common stock priced at $6.50 each and 3,415 shares of convertible preferred stock with a similar conversion price. Notably, several directors invested $3.05 million in preferred shares, and part of the issuance settled outstanding director loans. Additionally, the conversion of the preferred shares into common stock is contingent on stockholder approval, which the company plans to seek soon.
- Successfully raised $13.9 million through a private placement.
- 1,611,845 shares of common stock issued at $6.50 enhances liquidity.
- Directors' investment of $3.05 million signals confidence in the company.
- Need for stockholder approval for share conversion adds uncertainty.
- Convertible preferred shares may lead to potential shareholder dilution.
STOCKHOLM, Aug. 10, 2020 /PRNewswire/ -- Neonode Inc. (NASDAQ: NEON), today announced the closing of a previously-announced private placement of
Pursuant to the terms of the Private Placement, Neonode issued an aggregate total of 1,611,845 shares of common stock (the "Common Shares") at a price of
Ulf Rosberg and Peter Lindell, directors of Neonode (the "Directors"), and Urban Forssell, Chief Executive Officer of Neonode, purchased an aggregate of
In addition, Neonode issued 1,034 shares of Convertible Preferred Shares to the Directors to repay
The Convertible Preferred Shares are convertible into an aggregate of 684,378 shares of common stock. The Convertible Preferred Shares will automatically convert into common stock upon stockholder approval, of which Neonode has agreed to seek at the earliest possible date. Neonode also will seek stockholder approval with respect to the issuance of shares to the Directors and the Chief Executive Officer in accordance with Nasdaq listing rules.
Craig-Hallum Capital Group LLC acted as exclusive placement agent in connection with the offering.
Further information regarding the Private Placement can be found in the Current Report on Form 8-K being filed today by Neonode with the Securities and Exchange Commission (the "SEC").
The securities sold in the Private Placement have not been registered under the Securities Act of 1933, as amended, or state securities laws and may not be offered or sold in the United States absent registration with the SEC or an applicable exemption from such registration requirements.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.
For more information, please contact:
CONTACT:
Investor Relations
David Brunton
E-mail: david.brunton@neonode.com
Chief Financial Officer
Maria Ek
E-mail: maria.ek@neonode.com
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SOURCE Neonode
FAQ
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