WISeKey International To Raise Debt Via Convertible Note Sales To Institutional Investors

WISeKey International Holding Ltd WKEY inked a convertible notes subscription agreement of up to $44 million and warrant agreement with institutional investors.
WISeKey will issue an initial convertible note worth $22 million for subscription by the investors. Additionally, WISeKey has the right to request the investors to subscribe for four additional notes tranches, each worth $5.5 million.
The investors need to subscribe to each additional note tranche when the daily VWAP for Issuer Shares remain at or above 130% of the applicable fixed conversion price for a period of 30 consecutive trading days immediately preceding the date on which the issuers submit the subscription notice to the investor.
Each of the convertible notes under both agreements has a maturity date of 24 months and carries interest at a rate of 6% p.a.
The investors can convert each calendar month a conversion amount of up to 12.5% of the initial principal amount of all issued tranches.
The investors are required to convert all outstanding notes at maturity at the applicable conversion price.
The fixed conversion price is CHF4 for the first 25% of the initial notes’ tranche. CHF5 for the second 25%, CHF6 for the third 25%, and CHF7.5 for the final 25%.
The funding provides WISeKey access to flexible financing at a reasonable cost and helps to continue financing the growth of its operations in countries where the company already operates, CEO Carlos Moreira said.
Price action: WKEY shares traded lower by 3.10% at $7.24 on the last check Tuesday.

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