WISeKey secures a convertible loan in the amount of USD 3.0 million from a fund managed by Crede Capital Group, LLC

ZUG, Switzerland, October 1, 2018 – WISeKey International Holding Ltd (“WISeKey”) (SIX: WIHN), a leading Swiss cybersecurity and IoT company, today announced that it has entered into a Convertible Loan Agreement with a fund managed by Crede Capital Group, LLC (“Crede”).

Under the terms of the Convertible Loan Agreement, Crede will grant WISeKey a loan in the principal amount of USD 3 million. Pursuant to the terms of the Convertible Loan Agreement, the principal amount is repayable by way of conversion into registered shares of WISeKey (the “Class B Shares”), with a par value of CHF 0.05 each. The conversion price is determined by reference to the 10-trading day volume weighted average price of Class B Shares on the SIX Swiss Exchange immediately preceding the conversion, which may occur at any time prior to the maturity of the loan on September 25, 2020. As consideration for the financing, WISeKey will be issuing a warrant to Crede, pursuant to which Crede will have the right to acquire Class B Shares at an exercise price of CHF 3.84, reflecting a premium of 7% over current trading prices of Class B Shares. The warrant is exercisable during a three-year period. The effectiveness of the agreement and the warrant is subject to certain conditions, including receipt of tax rulings by Swiss tax authorities.

“The Convertible Loan will be used for general corporate purposes, refinancing the existing debt and for making investments in the US and China, which are key to WISeKey’s further expansion into these markets and revenue generation,” said WISeKey’s CEO, Carlos Moreira.

About Crede Capital:

Crede Capital Group LLC (“Crede”) is Terren Pelzer’s personal investment vehicle in public equities, with offices in Los Angeles, New York and Singapore. Crede is a long-only investor and has completed more than 60 investments in emerging growth companies in eleven countries on four continents, providing both growth capital as well as business support. Since its 2009 inception, Crede has completed approximately 115 transactions committing in excess of $900 Million in capital.

About WISeKey:

WISeKey (SIX Swiss Exchange: WIHN) is a leading global cybersecurity company currently deploying large scale digital identity ecosystems with a patented process. WISeKey’s Swiss based cryptographic Root of Trust (“RoT”) provides secure authentication and identification, in both physical and virtual environments, for the Internet of Things, Blockchain and Artificial Intelligence. The WISeKey RoT serves as a common trust anchor to ensure the integrity of online transactions among objects and between objects and people. For more information, visit www.wisekey.com.

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Disclaimer:
This communication expressly or implicitly contains certain forward-looking statements concerning WISeKey International Holding Ltd and its business. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause the actual results, financial condition, performance or achievements of WISeKey International Holding Ltd to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. WISeKey International Holding Ltd is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.

This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and it does not constitute an offering prospectus within the meaning of article 652a or article 1156 of the Swiss Code of Obligations or a listing prospectus within the meaning of the listing rules of the SIX Swiss Exchange. Investors must rely on their own evaluation of WISeKey and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of WISeKey.