Smart Eye Expands its Credit Facility

Rhea-AI Summary

Smart Eye has secured a SEK 150 million credit facility through an agreement with an independent credit market actor group. This increases the company's unused credit limit from SEK 82 million to SEK 232 million. The facility aims to create financial buffers against potential negative impacts on new car sales and support Smart Eye's expansion plans, including product development and potential acquisitions.

CEO Martin Krantz explained that this proactive measure addresses the risk of continued lower-than-expected global new car sales affecting licensing revenue growth. Despite this, Smart Eye remains optimistic about its licensing revenues' development, supported by multiple car models and manufacturers. The ADDW legislation, effective mid-2024, requires adaptation of all European car models by 2026, which is expected to benefit the company. This increased credit limit complements Smart Eye's focus on cost control, providing additional financial security.

Positive

• Secured SEK 150 million credit facility
• Increased unused credit limit from SEK 82 million to SEK 232 million
• ADDW legislation requires adaptation of all European car models by 2026, potentially benefiting Smart Eye

Negative

• Global new car sales not meeting expected levels
• Potential continued impact on licensing revenue growth rate

GÖTEBORG, SWEDEN / ACCESSWIRE / October 7, 2024 / Smart Eye (STO:SEYE)(OTC PINK:SMTEF)(FRA:SE9) Smart Eye has entered into an agreement on market terms with an independent credit market actor group, enabling the company to secure a total credit facility of SEK 150 million.

With this credit facility, Smart Eye increases its unused credit limit from SEK 82 million to SEK 232 million.

The credit facility has been arranged with the purpose of creating financial buffers, should the economic climate continue to negatively impact new car sales. Additionally, it ensures that Smart Eye can proceed with its expansion plans, including further development of new products and potential acquisitions.

Martin Krantz, CEO, states: "We have proactively decided to increase our credit limits as global new car sales are currently not meeting the expected levels. We must acknowledge the risk that this may continue to affect the growth rate of our licensing revenues. We remain optimistic about the development of Smart Eye's licensing revenues in both the short and long term, benefiting from multiple car models and several manufacturers. The legislation (ADDW) that came into effect in mid-2024 requires customers to adapt all European car models by 2026. Increasing the credit limits also provides additional security, complementing our previously communicated focus on cost control."

For more information:

Martin Krantz, CEO Smart Eye AB
Phone: +46 70-329 26 98
Email: martin.krantz@smarteye.se

About Smart Eye

Smart Eye is the leading provider of Human Insight AI, technology that understands, supports and predicts human behavior in complex environments. The company is on a mission to bridge the gap between humans and machines for a safe and sustainable future. Supported by Affectiva and iMotions - companies it acquired in 2021 - Smart Eye's multimodal software and hardware solutions provide unparalleled insight into human behavior.

In automotive, Smart Eye's driver monitoring systems and interior sensing solutions improve road safety and the mobility experience. The company's eye tracking technology and iMotions biosensor software platform are also used in behavioral research to enable advanced research in academic and commercial sectors. In media analytics, Affectiva's Emotion AI provides the world's largest brands and market researchers with a deeper understanding of how consumers engage with content, products, and services.

Founded in 1999, Smart Eye is a global company headquartered in Sweden, with customers including NASA, Nissan, Boeing, Honeywell, Volvo, GM, BMW, Polestar, Geely, Harvard University, 26 percent of the Fortune Global 500 companies, and over 1,300 research organizations around the world.

Visit www.smarteye.ai for more information.

Visit our investor web for more financial information: https://smarteye.se/investors/

Smart Eye is listed on the Nasdaq First North Growth Market. The Company's Certified Adviser is Carnegie Investment Bank AB (publ).

This information is information that Smart Eye is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-10-07 11:55 CEST.

Attachments

Smart Eye expands its credit facility

SOURCE: Smart Eye

View the original press release on accesswire.com

FAQ

What is the new credit facility amount secured by Smart Eye (SMTEF)?

Smart Eye (SMTEF) has secured a credit facility of SEK 150 million.

How much has Smart Eye's unused credit limit increased to?

Smart Eye's unused credit limit has increased from SEK 82 million to SEK 232 million.

What is the purpose of Smart Eye's new credit facility?

The credit facility aims to create financial buffers against potential negative impacts on new car sales and support Smart Eye's expansion plans, including product development and potential acquisitions.

When does the ADDW legislation require European car models to be adapted?

The ADDW legislation, effective mid-2024, requires all European car models to be adapted by 2026.