STOCKHOLM, Aug. 5, 2020 /PRNewswire/ -- Neonode Inc.
(NASDAQ: NEON), today announced it has entered into definitive
agreements with institutional and accredited investors, including
insiders of the Company, for the private placement of $13.9 million of Neonode's common stock and
convertible preferred stock (the "Private Placement").
Pursuant to the terms of the Private Placement, Neonode has
agreed to sell an aggregate total of 1,611,845 shares of common
stock (the "Common Shares") at a price of $6.50 per Common Share, and 3,415 shares of
convertible preferred stock (the "Convertible Preferred Shares")
with a conversion price of $6.50 per
share and a stated value of $1,000
per Convertible Preferred Share.
Ulf Rosberg and Peter Lindell, directors of Neonode (the
"Directors"), and Urban Forssell,
Chief Executive Officer of Neonode, have agreed to purchase an
aggregate of $3.05 million of the
Convertible Preferred Shares in the Private Placement.
In addition, Neonode will issue 1,033 shares of Convertible
Preferred Shares to the Directors to repay $1 million of outstanding indebtedness owed to
the Directors under loan agreements dated June 17, 2020.
The Convertible Preferred Shares are convertible into an
aggregate of 684,378 shares of common stock. The Convertible
Preferred Shares will automatically convert into common stock upon
stockholder approval, of which Neonode has agreed to seek at the
earliest possible date. Neonode also will seek stockholder approval
with respect to the issuance of shares to the Directors and the
Chief Executive Officer in accordance with Nasdaq listing
rules.
Neonode has also agreed to file, within thirty days, a
registration statement with the SEC to register the resale of the
Common Shares and the shares of common stock underlying the
Convertible Preferred Shares.
Neonode expects to close the Private Placement on or about
August 7, 2020, subject to the
satisfaction of customary closing conditions.
Craig-Hallum Capital Group LLC is acting as exclusive placement
agent in connection with the offering.
The securities sold in the Private Placement have not been
registered under the Securities Act of 1933, as amended, or state
securities laws and may not be offered or sold in the United States absent registration with the
Securities and Exchange Commission ("SEC") or an applicable
exemption from such registration requirements.
This press release shall not constitute an offer to sell or
the solicitation of an offer to buy these securities, nor shall
there be any sale of these securities in any state or other
jurisdiction in which such offer, solicitation or sale would be
unlawful.
CONTACT:
Investor Relations
David Brunton
E-mail: david.brunton@neonode.com
Chief Financial Officer
Maria
Ek
E-mail: maria.ek@neonode.com
This information was brought to you by Cision
http://news.cision.com
https://news.cision.com/neonode/r/neonode-announces--13-9-million-private-placement,c3164351
The following files are available for download:
https://mb.cision.com/Main/17297/3164351/1287499.pdf
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