SEALSQ Corp (NASDAQ: LAES ) (“SEALSQ” or the “Company”), a company focused on the development and sale of semiconductor, PKI and post-quantum technology hardware and software products, today announced that it expects to end the year with a strong balance sheet balance and cash position projected to exceed $85 million by January 3, 2025. The Company’s advancement into post-quantum technology, widely recognized as a key driver of future growth, has positioned SEALSQ as a leader in this transformative sector.
As part of its strategic initiatives, SEALSQ recently raised gross proceeds of $60 million through multiple registered direct offerings. This includes a US$10 million registered direct offering announced on December 12, 2024 and an additional US$50 million raised through two subsequent registered direct offerings completed in December 2024. As a result, on December 30, 2024 SEALSQ’s total common shares reached 93 .8 million, and the market capitalization exceeded 700 million dollars.
The net proceeds raised through these transactions will be used to accelerate the deployment of post-quantum semiconductor technology and application-specific integrated circuit (ASIC) capabilities in the US, while also supporting general corporate goals.
Warrants approved and convertible facilities cancelled
The first registered direct offer included a requirement that the Company enter into a $10 million convertible loan on or before January 16, 2025. If the Company fails to do so, all outstanding warrants will revert to an exercise price of $1.30 with an associated increase net income retention order quantities.
In order to remove the requirement to enter into the convertible loan and to avoid the associated reduction in the warrant exercise price, the Company has today agreed with the holders of its outstanding warrants on a one-time reduction in the exercise price of all outstanding warrants to $1.65, provided that all outstanding warrants are exercised until January 3, 2025 (subject to a potential reduction in the initial price of $1.30 for some of the warrants, in the event that the Company does not complete certain regulatory filings on or before January 3, 2025).
Once this is completed, SEALSQ will successfully meet its outstanding obligations under the order and will no longer be required to enter into the above convertible loan. These financial measures are expected to strengthen the Company’s balance sheet and support its long-term growth strategy.
Optimized financial structure
Legacy financing tools, used during the company’s growth phase, have been phased out, reflecting SEALSQ’s strengthened financial position. The Company has also received official written confirmation from The Nasdaq Stock Market, LLC (Nasdaq) confirming that it has regained compliance with Nasdaq’s minimum bid price requirement, as announced on December 26, 2024.
Re-compliance with Nasdaq’s minimum bid price requirement is the result of the closing price of the Common Shares being at least $1.00 for at least 10 consecutive business days prior to the January 28, 2025 deadline, as described in Nasdaq’s initial notice On August 1, 2024, the company received
The Company reaffirms its statement dated December 19, 2024 that, given the terms of the financing completed in December, it does not currently expect to enter into a further registered direct offering of common stock for at least 60 days after the December 19, 2024 announcement as a result of the funds raised.
This press release will not constitute an offer to sell or the solicitation of an offer to buy these securities, nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be illegal prior to registration or qualification under the securities laws of any such state or other jurisdiction.
About SEALSQ
SEALSQ is a leading innovator in hardware and software solutions for post-quantum technology. Our technology seamlessly integrates semiconductors, PKI (Public Key Infrastructure) and provisioning services, with a strategic focus on developing cutting-edge Quantum (NASDAQ: ) resilient cryptography and semiconductors designed to address the pressing security challenges posed by quantum computing. As quantum computers advance, traditional cryptographic methods like RSA and Elliptic Curve Cryptography (ECC) are increasingly vulnerable.
SEALSQ is a pioneer in the development of post-quantum semiconductors that provide robust protection of sensitive data for the future in a wide range of applications, including multi-factor authentication tokens, Smart Energy, Medical (TASE:) and healthcare systems, defense, IT network infrastructure, automotive and industrial automation and control systems. By incorporating post-quantum cryptography into our semiconductor solutions, SEALSQ ensures that organizations remain protected from quantum threats. Our products are designed to protect critical systems, increasing resilience and security in a variety of industries.
For more information about our post-quantum semiconductors and security solutions, visit www.sealsq.com.
Forward-looking statements
This communication expressly or impliedly contains certain forward-looking statements regarding SEALSQ Corp and its business. Forward-looking statements include statements about our business strategy, financial results, operating results, market data, events or developments that we expect or predict will occur in the future, and any other statements that are not historical facts. Although we believe that the expectations expressed in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. These statements involve known and unknown risks and are based on a number of assumptions and estimates that 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 opinion, could cause actual results to differ materially from those discussed in the forward-looking statements include the investor’s performance of the guarantees; SEALSQ’s ability to execute its growth strategies; SEALSQ’s ability to successfully launch post-quantum semiconductor technology; SEALSQ’s ability to capture a piece of the quantum semiconductor market; the growth of the quantum computing market; SEALSQ’s ability to expand its operations in the US; SEALSQ’s ability to make additional investments in the development of a new generation of quantum ready semiconductors; SEALSQ’s ability to continue beneficial transactions with significant parties, including a limited number of significant customers; market demand and semiconductor industry conditions; the growth of the quantum computing market; and risks discussed in SEALSQ’s filings with the SEC. The risks and uncertainties are further described in the reports filed by SEALSQ with the SEC.
SEALSQ Corp provides this communication as of the date hereof and undertakes no obligation to update any forward-looking statements contained herein as a result of new information, future events or otherwise.
Contacts for press and investors
SEALSQ Corp.
Carlos Moreira
President & CEO
Phone: +41 22 594 3000
info@sealsq.com
SEALSQ Investor Relations (USA)
The Equity Group Inc.
Lena Cati
Phone: +1 212 836-9611 / lcati@equityny.com
Katie Murphy
Phone: +212 836-9612 / kmurphy@equityny.com
