Smart Eye Has Completed a Directed Share Issue of SEK 189 Million

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The Board of Directors of Smart Eye AB has, based on the authorization given by the Company’s Annual General Meeting on 8 May 2020, resolved on a directed share issue of 1,511,898 new shares (corresponding to 10 per cent of the total number of outstanding shares and votes in the Company) at a subscription price of SEK 125 per share (the “Issue”), which means that the Company receives SEK 188,987,250 before transaction costs. The subscription price in the Issue has been determined through an accelerated bookbuilding procedure and corresponds to a d******* of 2.9 per cent compared to the volume weighted average price on Nasdaq First North Growth Market on 5 October 2020. The interest in the Issue was very large, from both existing shareholders as well as new investors.

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The market for Automotive Solutions remains strong, largely as a result of additional regulatory and legislative activities. The Company remains a leader in the global competition for design wins relating to eye-tracking software, which are no longer confined to premium cars but increasingly moving toward the mass market with imminent high-volume models. This is manifested in a large number of design wins won during the past year. Several new procurement processes are underway in Asia, Europe and North America and are expected to be determined over the coming two years. Smart Eye expects to defend its market-leading position. In order to fully capitalise on new and expected design wins, maintain the Company’s leading position and maximize its long-term growth potential in all business areas, Smart Eye sees a need to invest further in the business.

“Smart Eye comes from a period of sheer success in the DMS market. Today’s issue of SEK 189 million ensures our ability to deliver to the many won global automotive projects while strengthening our competitiveness ahead of the coming wave of new procurements. Using eye tracking to save lives is nowadays a given in the automotive industry,” says Martin Krantz, CEO of Smart Eye.

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The reason for deviating from the shareholders’ preferential right is to ensure the most time and cost-effective financing as possible of the continued scale-up of the business, so that the Company can cover its financing needs until the obtained and potentially additional customers begin to generate sufficient large revenues to cover the Company’s costs. As the subscription price in the Issue has been determined through a bookbuilding procedure, it is the Board of Directors’ assessment that the subscription price reflects current market conditions and demand.

The Issue entails a dilution of approximately 9.1 per cent of the share capital in relation to the number of shares in Smart Eye after the Issue, through an increase in the number of outstanding shares by 1,511,898 from 15,118,984 to 16,630,882 and a share capital increase by SEK 151,189.8 from SEK 1,511,898.4 to SEK 1,663,088.2.

In connection with the Issue, the members of the Board and certain members of the management team, of which several are large shareholders in Smart Eye, have undertaken to, subject to certain exceptions, not sell shares in Smart Eye for a period of 180 calendar days after the settlement date. Furthermore, the Company has agreed to a commitment, with customary exceptions, not to carry out any additional issuances for a period of 180 calendar days after the settlement date.

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