WISeKey International Holding Ltd (“WISeKey”) (WIHN.SW) today announced that it has obtained a $16.4 million secured line of credit facility (the “Credit Facility”) for acquisition financing with maturity up to 18 months from ExWorks Capital, a U.S. private debt fund specializing in international trade and working capital financing.
Draw-down from the Credit Facility is subject to closing conditions, including the grant of options to ExWorks exercisable for up to 1,075,000 registered shares, par value CHF 0.05 (Class B Shares), at an exercise price corresponding to a volume-weighted average price determined by reference to a period commencing after WISeKey’s announcement of its audited FY2016 annual results, and the execution of security agreements over shares of certain of the company’s subsidiaries and certain other assets. The Credit Facility can be up-sized / syndicated at the same terms for up to an additional $10.0 million by way of adding co-lender(s) or selling a participation interest.
Carlos Moreira, Chairman and CEO of WISeKey said: “We believe that this Credit Facility provides us with the flexibility and leverage to finance strategic acquisitions partially with debt, in the short-run.”
Randy Abrahams, Executive Chairman of ExWorks Capital, added, “ExWorks is excited to partner with WISeKey to provide them with an acquisition line of credit that will allow the Company to pursue its growth strategy. The structure and flexibility of our Credit Facility will allow WISeKey to quickly and efficiently make accretive acquisitions, both internationally and in the U.S., that will drive positive shareholder value.”
WISeKey has retained ACXIT Capital Partners and Source Capital as financial advisors for this transaction. Source Capital acted as sole placement agent for this facility.
WISeKey is currently offering IoT manufacturers the possibility of deploying large scale IoT ecosystems using its Cryptographic RoT and NFCTrusted© technology. This trusted technology integrates wearable technology with secure authentication and identification, in both physical and virtual environments, and empowers IoT and wearable devices to become secure transactional devices. WISeKey has patented this process in the USA as it is currently used by many IoT providers. For more information, click here.
The RoT serves as a common trust anchor, which is recognized by the operating system (OS) and applications, to ensure the authenticity, confidentiality and integrity of on-line transactions. With the Cryptographic RoT embedded on the device, the IoT product manufacturers can use code-signing certificates and a cloud-based signature-as-a-service to secure interactions among objects and between objects and people.
WISeKey International Holding Ltd (“WISeKey”, SIX:WIHN) is a leading cybersecurity company currently deploying large scale Internet of Things (“IoT”) digital identity ecosystems. WISeKey’s Swiss based Cryptographic Root of Trust (RoT) integrates wearable technology with secure authentication and identification, in both physical and virtual environments, and empowers IoT and wearable devices to become secure transactional devices. WISeKey has patented this process in the USA as it is currently used by many IoT providers. For more information, visit www.wisekey.com.
About ExWorks Capital
ExWorks Capital, headquartered in the USA, is an international, import and export finance company that offers financing solutions to businesses utilizing its own capital as well as by leveraging its Delegated Authority granted by both the SBA and ExIm Bank.
ExWorks Capital’s offerings include:
- Export and Import Trading – ExWorks can provide between $500,000 and $25,000,000 per trade to suppliers that need the funds to be able to purchase goods for sale to international buyers, thereby eliminating the need to raise equity in order to fulfil international sales contracts.
- Working Capital Financing – ExWorks can provide International Trade Receivable and Inventory Revolvers, including advancing on Raw Materials, WIP and Finished Goods, between $1,000,000 and $25,000,000.
- Term Loan Financing – ExWorks can provide Term Loans between $10,000,000 and $100,000,000 to Foreign Customers.