SEALSQ Announces Completion of a $25.0 Million Registered Direct Offering

Rhea-AI Summary

SEALSQ Corp (NASDAQ: LAES) has completed a registered direct offering of 13,157,896 ordinary shares at $1.90 per share, raising $25.0 million in gross proceeds. This brings the total gross proceeds from financings this week to $60.0 million, before deducting commissions and expenses. The company commits to not entering any further registered direct offering for at least 60 days.

The net proceeds will fund the deployment of next-generation post-quantum semiconductor technology and ASIC capabilities in the United States, support working capital, and general corporate purposes. Maxim Group served as the sole placement agent for the offering.

Positive

• Secured $25.0 million in gross proceeds through share offering
• Total financing of $60.0 million raised this week
• 60-day commitment to avoid further share offerings
• Funds allocated for post-quantum semiconductor technology development

Negative

• Significant shareholder dilution through issuance of 13,157,896 new shares
• Shares offered at $1.90, potentially impacting market price
• Additional expenses and commissions will reduce net proceeds

Insights

Financial Analyst

The $25M registered direct offering at $1.90 per share marks a strategic capital raise, bringing SEALSQ's total recent financing to $60M. The pricing represents a premium to recent trading levels, indicating strong institutional interest in SEALSQ's quantum technology roadmap.

The decision to lock in a 60-day moratorium on further share offerings demonstrates management's commitment to minimize dilution and protect shareholder value. The capital infusion significantly strengthens SEALSQ's balance sheet, providing runway for its ambitious US-based post-quantum semiconductor development plans.

With a market cap around $150M, this financing represents a substantial 40% of the company's value. While dilutive in the near term, the strategic deployment into next-gen quantum capabilities could position SEALSQ as a key player in the emerging post-quantum cryptography market, estimated to reach $9.5B by 2029.

Technology Analyst

The capital raise positions SEALSQ to accelerate its post-quantum semiconductor development at a important time. With quantum computers advancing rapidly, the need for quantum-resistant security solutions is becoming increasingly urgent. The focus on US-based ASIC capabilities aligns with growing national security concerns and semiconductor sovereignty initiatives.

The investment in post-quantum chip development is particularly strategic given the NIST's recent standardization of post-quantum cryptographic algorithms. Early movers in post-quantum semiconductor implementation will likely capture significant market share as organizations begin their quantum-safe transitions. The timing of this capital deployment could prove pivotal in establishing SEALSQ's competitive position in the quantum-resistant hardware market.

Geneva, Switzerland, Dec. 19, 2024 (GLOBE NEWSWIRE) --

SEALSQ Corp (NASDAQ: LAES) ("SEALSQ" or "Company"), a company that focuses on developing and selling Semiconductors, PKI and Post-Quantum technology hardware and software products, today announced that it has completed a registered direct offer to several institutional investors of 13,157,896 ordinary shares at a public offering price of $1.90, for gross proceeds of $25.0 million (the “Offering”), before deducting commissions and offering expenses. This brings the total gross proceeds from financings completed this week to $60.0 million, before deducting commissions and offering expenses. The Company confirms that, given the terms of the financings completed in the last week, it does not currently expect to enter into any further registered direct offering of ordinary shares for at least the next 60 days as a result of the funds raised.

Maxim Group LLC acted as the sole placement agent for the Offering.

SEALSQ currently intends to utilize the net proceeds from the Offering to fund the deployment of its next-generation post-quantum semiconductor technology and ASIC capabilities in the United States, to support working capital and for general corporate purposes.

Carlos Moreira, CEO of the SEALSQ, said, “We are delighted to have secured this financing, which enables us to focus on advancing our quantum strategy, particularly the development and market launch of our post-quantum chips. The funds raised over the past week will significantly support the achievement of our strategic goals. As we move into the new year, we look forward to sharing further details on the Company's next steps.”

The securities described above were offered by the Company pursuant to an effective shelf registration statement on Form F-3 (File No. 333-283358) previously filed with and subsequently declared effective by the U.S. Securities and Exchange Commission (“SEC”) on November 27, 2024. A prospectus supplement relating to the securities issued in, and describing the terms of, the Offering was filed by the Company with the SEC. Copies of the prospectus supplement relating to the Offering, together with the accompanying prospectus, can be obtained at the SEC's website at www.sec.gov or by contacting Maxim Group LLC, at 300 Park Avenue, 16th Floor, New York, NY 10022, Attention: Syndicate Department, or via email at syndicate@maximgrp.com or by telephone at (212) 895-3745.

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 prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About SEALSQ:
SEALSQ focuses on selling integrated solutions based on Semiconductors, PKI and Provisioning services, while developing Post-Quantum technology hardware and software products. Our solutions can be used in a variety of applications, from Multi-Factor Authentication tokens, Smart Energy, Smart Home Appliances, Medical and Healthcare and IT Network Infrastructure, to Automotive, Industrial Automation and Control Systems.

Post-Quantum Cryptography (PQC) refers to cryptographic methods that are secure against an attack by a quantum computer. As quantum computers become more powerful, they may be able to break many of the cryptographic methods that are currently used to protect sensitive information, such as RSA and Elliptic Curve Cryptography (ECC). PQC aims to develop new cryptographic methods that are secure against quantum attacks. For more information, please visit www.sealsq.com.

Forward Looking Statements

This communication expressly or implicitly contains certain forward-looking statements concerning SEALSQ Corp and its businesses. Forward-looking statements include statements regarding our business strategy, financial performance, results of operations, market data, events or developments that we expect or anticipates will occur in the future, as well as any other statements which are not historical facts. Although we believe that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those expressed or implied by such forward-looking statements. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include SEALSQ’s ability to implement its growth strategies; SEALSQ’s ability to successfully launch post-quantum semiconductor technology; SEALSQ’s ability to capture a share of the quantum semiconductor market; the growth of the quantum computing market; SEALSQ’s ability to expand its U.S. operations; SEALSQ’s ability to make additional investments towards the development of a new generation of quantum-ready semiconductors; SEALSQ’s ability to continue beneficial transactions with material parties, including a limited number of significant customers; market demand and semiconductor industry conditions; the growth of the quantum computing market; and the risks discussed in SEALSQ’s filings with the SEC. Risks and uncertainties are further described in reports filed by SEALSQ with the SEC.

SEALSQ Corp is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.

Press and Investor Contacts

SEALSQ Corp.
Carlos Moreira
Chairman & CEO
Tel: +41 22 594 3000
info@sealsq.com

SEALSQ Investor Relations (US)
The Equity Group Inc.
Lena Cati
Tel: +1 212 836-9611 / lcati@equityny.com
Katie Murphy
Tel: +212 836-9612 / kmurphy@equityny.com

FAQ

How much did SEALSQ (LAES) raise in its December 2024 registered direct offering?

SEALSQ raised $25.0 million in gross proceeds through a registered direct offering of 13,157,896 ordinary shares at $1.90 per share.

What is the total amount SEALSQ (LAES) raised in financings during December 2024?

SEALSQ raised a total of $60.0 million in gross proceeds from financings completed during the week of December 19, 2024.

How will SEALSQ (LAES) use the proceeds from its December 2024 offering?

SEALSQ will use the proceeds to fund post-quantum semiconductor technology deployment, ASIC capabilities in the US, working capital, and general corporate purposes.

What is SEALSQ's (LAES) commitment regarding future share offerings?

SEALSQ committed to not entering any further registered direct offering of ordinary shares for at least 60 days following the December 2024 offering.

How many new shares did SEALSQ (LAES) issue in the December 2024 offering?

SEALSQ issued 13,157,896 ordinary shares at a public offering price of $1.90 per share.