NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, HONG KONG, JAPAN, CANADA, NEW ZEALAND, SWITZERLAND, SINGAPORE, SOUTH AFRICA, SOUTH KOREA, OR IN ANY OTHER JURISDICTION WHERE RELEASE, PUBLICATION, OR DISTRIBUTION OF THIS PRESS RELEASE WOULD BE UNLAWFUL, SUBJECT TO LEGAL RESTRICTIONS, OR WOULD REQUIRE REGISTRATION OR OTHER MEASURES.
ZignSec AB (publ) (“ZignSec” or the “Company”) today announces the outcome of the rights issue of shares which was announced by press release on 29 April 2024 (the "Rights Issue"). The Rights Issue has been subscribed for a total of approximately 87.5 percent. The underwriting commitments therefore did not need to be utilized. Through the Rights Issue, ZignSec receives approximately SEK 29.3 million before deduction of issue costs. The proceeds from the Rights Issue will primarily be used to strengthen ZignSec's market presence and position the Company for continued growth, particularly in Europe, Latin America, and the Asia-Pacific region. To support this process, the company intends to significantly upgrade its technical capacity by enhancing core products and technical platform, investing in its global sales team, increasing its digital marketing efforts, and undertaking further investment in technology and development to enhance and renew the company's core products and technical platform.
“I would like to personally express my gratitude to each and every one of you, our current and new shareholders. Your strong support and participation in our recent rights issue, which was subscribed to almost 90%, have not only been crucial but also contributed to its success. With this new capital, we are well positioned for an exciting future, where we plan to invest the funds recieved to expand our product offerings, further improve our technical capabilities, and strengthen our overall market presence. We look forward to achieving our strategic goals and delivering value to you shareholders!” says ZignSec CEO Glenn Mac Donald.
Outcome of the Rights Issue The subscription period in the Rights Issue ended on 31 May 2024. In total, 117 256 054 shares were subscribed for with and without support of subscription rights, corresponding to approximately 87.5 percent of the Rights Issue. 94 292 922 shares were subscribed for with subscription rights, corresponding to approximately 70.4 percent, whereas 22 963 132 shares were subscribed for without subscription rights, corresponding to approximately 17.1 percent of the Rights Issue. The underwriting commitments therefore did not need to be utilized.
Through the Rights Issue, the Company receives approximately SEK 29.3 million before deduction of issue costs, which are estimated to amount to approximately SEK 5.2 million, of which the underwriting compensation amounts to approximately SEK 2.2 million.
Notice of allotment and delivery Allotment of shares subscribed for without subscription rights, has been carried out in accordance with the principles set out in the prospectus that was published on 16 May 2024. Notification of the allotment of shares subscribed for without subscription rights, will be sent via a separate settlement note. Nominee shareholders receive notification of allotment in accordance with the respective nominee's routines.
Number of shares and share capital Through the Rights Issue, the number of shares in ZignSec increases by 117 256 054 shares, from 89 379 981 shares to 206 636 035 shares, and the share capital increases by approximately SEK 4 646 867.720, from SEK 3 542 136.498 to SEK 8 189 004.219.
Paid Subscribed Shares (“BTA”) Trading in BTA takes place on Nasdaq First North Growth Market until the conversion of BTA into shares, which takes place after the Rights Issue have been registered at the Swedish Companies Registration Office. Registration at the Swedish Companies Registration Office is expected to take place around 24 June 2024.
Advisors Corpura Fondkommission AB (www.corpura.se) acted as financial advisor and Eversheds Sutherland Advokatbyrå AB is acting as legal advisor to ZignSec in connection with the Rights Issue. Aqurat Fondkommission AB is acting as issuing agent.
For more information: Glenn Mac Donald, CEO E-post: ir@zignsec.com About ZignSec AB (publ) ZignSec is a technology group in the fast-growing RegTech industry. The company provides SaaS solutions for customer due diligence and ID verification with global reach. The solutions are used by companies to optimise their processes for onboarding both corporate customers and consumers while ensuring compliance with local and global regulatory requirements for Know Your Customer (KYC) and Anti-Money Laundering (AML). Nasdaq First North Ticker Symbol: ZIGN Certified Adviser: Eminova Fondkommission AB, Tel: +46 8 684 211 00 Important information Publication, release or distribution of this press release may in certain jurisdictions be subject to legal restrictions and persons in the jurisdictions where this press release has been made public or distributed should be informed of and follow such legal restrictions. The recipient of this press release is responsible for using this press release and the information herein in accordance with applicable rules in each jurisdiction. This press release does not constitute an offer or solicitation to buy or subscribe for any securities in ZignSec in any jurisdiction, either from ZignSec or from anyone else.
This press release is not a prospectus according to the definition in Regulation (EU) 2017/1129 (the "Prospectus Regulation") and has not been approved by any regulatory authority in any jurisdiction. A prospectus will be prepared by the Company and published on the Company's website after the prospectus has been reviewed and approved by the Swedish Financial Supervisory Authority (Sw. Finansinspektionen).
This press release does not constitute an offer or solicitation to buy or subscribe for securities in the United States. The securities mentioned herein may not be sold in the United States without registration, or without an exemption from registration, under the U.S. Securities Act from 1933 ("Securities Act"), and may not be offered or sold within the United States without being registered, covered by an exemption from, or part of a transaction that is not subject to the registration requirements according to the Securities Act. There is no intention to register any securities mentioned herein in the United States or to issue a public offering of such securities in the United States. The information in this press release may not be released, published, copied, reproduced or distributed, directly or indirectly, wholly or in part, in or to Australia, Hong Kong, Japan, Canada, New Zealand, Singapore, South Africa, the United States or any other jurisdiction where the release, publication or distribution of this information would violate current rules or where such an action is subject to legal restrictions or would require additional registration or other measures beyond those that follow from Swedish law. Actions in contravention of this instruction may constitute a violation of applicable securities legislation.
Forward-looking statements This press release contains forward-looking statements related to the Company's intentions, estimates or expectations with regard to the Company's future results, financial position, liquidity, development, outlook, estimated growth, strategies and opportunities as well as the markets in which the Company is active. Forward-looking statements are statements that do not refer to historical facts and can be identified by the use of terms such as "believes," "expects," "anticipates," "intends," "estimates," "will," "may," "implies," "should," "could" and, in each case, their negative, or comparable terminology. The forward-looking statements in this press release are based on various assumptions, which in several cases are based on further assumptions. Although the Company believes that the assumptions reflected in these forward-looking statements are reasonable, there is no guarantee that they will occur or that they are correct. Since these assumptions are based on assumptions or estimates and involve risks and uncertainties, actual results or outcomes, for many different reasons, may differ materially from those what is stated in the forward-looking statements. Due to such risks, uncertainties, eventualities and other significant factors, actual events may differ materially from the expectations that expressly or implicitly are contained in this press release through the forward-looking statements. The Company does not guarantee that the assumptions which serve as a basis for the forward-looking statements in this press release are correct, and each reader of the press release should not rely on the forward-looking statements in this press release. The information, opinions and forward-looking statements that expressly or implicitly are stated herein are provided only as of the date of this press release and may change. Neither the Company nor any other party will review, update, confirm or publicly announce any revision of any forward-looking statement to reflect events that occur or circumstances that arise with respect to the contents of this press release, beyond what is required by law or Nasdaq First North Growth Market Rulebook.
ZignSec AB (publ) is a Sweden-based regtech (regulatory technology) company with the aim to automate the process for companies to identify their customers digitally in real-time. Its product, ZignSec, is an identity service cloud platform for the online customer verification. The platform provides users with a suite of products, such as electronic identities, online ID scanning, register checks, real-time payments, phone number validation, banking API (application programming interface) and income analysis, among others, by focusing on identify the real person behind every user or transaction. The Companyâs solutions are dedicated to all businesses where KYC (know your customers) and AML (anti money laundering)-regulations exists such as financial services, i-gaming and e-health.
ZIGNSEC AB 
