LUND, Sweden, May 22, 2003 (PRIMEZONE) -- The board of directors of Precise Biometrics AB (publ) (Other OTC:PBMTF), has on 22 May 2003 adopted a resolution on a new share issue with preferential rights for the shareholders of the company, in accordance with the authorization granted to the board by the shareholders' extraordinary general meeting on 9 May 2003.
The company will, provided that the issue will be subscribed in full, be injected with capital in an amount of approximately SEK 37 million, after costs related to the issue. The terms of the issue are 2:1, to the issue price of SEK 1.70 per share. Approximately 43 per cent of the amount of the issue is deemed to be guaranteed by a declaration from most institutional shareholders of their intentions to subscribe for shares corresponding to their respective portions of the issue, or more.The interest in security continues to be very strong, and biometrics is becoming increasingly important as a component in security solutions.
Precise Biometrics' leading position within the technique for fingerprint identification on smart cards, Precise Match-on-Card(TM), is a factor in enabling the company to become involved, either directly or through partnership agreements, in an increasing number of projects. The motive for the new share issue is Precise Biometrics' success on the US market, which leads to an increase in capital tied up mainly in production and account receivables, which in turn has resulted in an increased need for working capital. A solid capital base is in addition thereto necessary in order to strengthen the competitiveness and endurance of the company in its dialogue with customers and other industrial actors.
During 2003, Precise Biometrics will build upon its success in the customer segment "US Government" and increase its efforts in the US market, to be able to capitalize on this market's potential even further. Revenues from license sales will gradually constitute an increasing proportion of Precise Biometrics' total revenue. The company estimates that a positive development in order intake combined with a continued strict cost control philosophy will afford solid prospects for a profitable future. The issue is estimated to finance the company's operations until positive operating cash flow is reached.
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 1.70 per share. The subscription period runs between 16 June and 27 June 2003. Record date for participation in the new issue is 13 June 2003. Last trading day with shares including subscription rights is 10 June 2003. Issue prospectus is expected to be published 11 June 2003.
The new issue will result in an increase of the share capital by not more than SEK 9,496,080 by a new issue of not more than 23,740,200 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 35,610,300, before any exercise of option rights.
Precise Biometrics AB (publ.) is an innovative security company that supplies world-leading systems for fingerprint-based authentication. The company's solutions replace keys, PIN codes and passwords. The company's products are cost-effective, secure and convenient while combining strong protection for the user's personal integrity. The product line includes systems for physical access control, access to computers and networks and for integration in mobile and fixed terminals such as mobile phones and computers. The company headquarters is located in Lund, Sweden. It also has offices in Stockholm and a subsidiary in Washington, DC, USA. Precise Biometrics is listed on the Stockholm Stock Exchange O-list (PREC A).
For more information, please visit http://www.precisebiometrics.com/