LUND, Sweden, Oct. 30, 2002 (PRIMEZONE) -- The board of directors of Precise Biometrics AB (publ) (Other OTC:PBMTF) (Stockholm:PRECa), has on October 29, 2002 adopted a resolution on a new issue of shares with preferential rights for the shareholders of the company, in accordance with the authorization granted to the board by the annual shareholders' meeting on April 16, 2002. The company will, provided that the issue will be subscribed in full, be provided with capital in an amount of approximately SEK 31.7 million, before costs related to the issue. The terms of the issue are 2:1, to the issue price of SEK 4 per share. Approximately 45 per cent, 1 of the amount of the issue, is deemed to be guaranteed based on that a number of major shareholders, the majority of the board members and the management of the company, have each declared their intentions to subscribe for shares corresponding to at least their respective portions of the issue.
The activity on the market for biometric security solutions has substantially increased during the second half of 2002, and Precise Biometrics' products are today offered in a large number of customer projects. Especially the company's technique for fingerprint identification on smart cards, Precise MatchonCard(TM), has gained commercial success with both card manufacturers and end customers. The reason for the issue is to strengthen the company's financial position in a longterm perspective. The capital provided shall enable a continued strong development of the commercial operations of the company and an additionally increased focus on sale and market development. A solid capital base will in addition thereto strengthen the competitiveness of the company in its dialogue with customers and other industrial actors. The issue is estimated to secure the company's financing for the coming financial year.
Precise Biometrics has, during the third and fourth calendar quarters this year, experienced a substantial increase in the order intake and estimates the sale of the fourth calendar quarter to amount to at least SEK 10 million. Due to the increase in sales and the reduced running expenses, a result of the implemented cost reduction program, the company estimates that the bottom line for the fourth calendar quarter will be substantially improved compared to preceding calendar quarter.
The new issue will be carried out with preferential rights for the shareholders, who, for each share held, will have the right to subscribe for two (2) new shares, at an issue price of SEK 4 per share. The subscription period runs between November 26 and December 13, 2002. Record date for participation in the new issue is November 21, 2002. Last trading day with shares including subscription rights is November 18, 2002. Issue prospectus is expected to be published November 21, 2002.
The new issue will result in an increase of the share capital by not more than SEK 3 165 360 by a new issue of not more than 7 913 400 shares of series A, each with a par value of SEK 0.40. The total number of shares after the issue, provided that it will be subscribed in full, will be 11 870 100, before any exercise of option rights.
1) The declarations of intent made by the institutional shareholders
are applicable provided that they are not at the time in conflict
with the regulations of the Financial Supervisory Board (SW:
Finansinspektionen) or other authorities regarding i. a. the maximum
shareholding permitted in an individual company.
Precise Biometrics AB (publ) is an innovative security company that supplies world-leading systems for authentication using fingerprints. The solutions supplied by the company replace keys, PIN codes and passwords. The company's products are cost effective and provide security and comfort combined with top-class protection of personal integrity. The range of products includes systems for access control to computers and networks and for building into mobile and terminals, such as mobile phones and portable computers. The company headquarters are in Lund, Sweden. The company also has offices in Stockholm and a U.S. subsidiary in Washington, D.C. Precise Biometrics is listed on the O-list of the Stockholm Stock Exchange (symbol: PREC A). For additional information, visit www.precisebiometrics.com.