WISeKey signs a $15.5 million high growth capital investment agreement with Alpha Blue Ocean to finance the acquisition of arago and integration of Artificial Intelligence on its Cybersecurity platform

WISeKey signs a $15.5 million high growth capital investment agreement with Alpha Blue Ocean to finance the acquisition of arago and integration of Artificial Intelligence on its Cybersecurity platform

Zug, Switzerland – December 8, 2020 – WISeKey International Holding Ltd (“WISeKey” or “Company”) (SIX: WIHN, NASDAQ: WKEY), a leading global cybersecurity, AI and IoT company, announced today that it has entered into an Agreement for the Issuance and Subscription of Convertible Notes (“Agreement”) with Alpha Blue Ocean to finance the acquisition of arago and integration of Artificial Intelligence on its Cybersecurity platform.

Financing is provided by Alpha Blue Ocean, a dynamic family office with the mission of revolutionizing the financial industry by offering innovative and tailored investments adapted to risk, in the form of convertible notes whereby Alpha Blue Ocean is committed to subscribe up to a maximum of $15.5 million subject to certain conditions over a period of 18 months. Pursuant to the terms of the Agreement, the principal amount of each such loan is repayable by way of conversion into Class B shares, par value CHF 0.05 each, of WISeKey (the “Class B Shares”).

The conversion price is determined by reference to the average of the lowest 5 trading day volume weighted average prices of Class B Shares on the SIX Swiss Exchange over the 20 trading days immediately preceding the conversion. The convertible note facility will be used to finance the acquisition of arago and integration of Artificial Intelligence on its Cybersecurity Platform and may be drawn in tranches depending on the operational and integration corporate requirements. As consideration for Alpha Blue Ocean’s financing commitment, WISeKey has, among other things, issued warrants in a number equal to 15% of the relevant tranches of the loans issued under the agreement at an exercise price of 120% of the prevailing share price before a subscription request by WISeKey, but in any event not lower than CHF 1.50.

“The agreement provides WISeKey access to flexible financing at a reasonable cost during the current COVID-19 crisis and under current market conditions will allow the Company to fully acquire arago and reinforce its technological offering, increase its revenue and market share,” says Carlos Moreira, Founder and CEO of WISeKey.

“We are excited to invest in WISeKey which we consider an emerging leader in the rapidly expanding market of Artificial Intelligence & Cybersecurity. We believe the acquisition of arago will foster strategic synergies alongside its cyber security and loT solutions. We are proud to partner up with Wisekey by financing this transaction,” adds Pierre Vannineuse, CEO of Alpha Blue Ocean.

About Alpha Blue Ocean:
Created in 2017 by Pierre Vannineuse, Hugo Pingray and Amaury Mamou-Mani, Alpha Blue Ocean is a young and dynamic family office with the mission of revolutionizing the financial industry by offering innovative and tailored investments adapted to risk.

Alpha Blue Ocean operates through a direct, rational and efficient approach in providing alternative financing solutions through PIPE (Private Investments in Public Equities) deals. ABO has made notable investments in companies such as AB Science (AB:FP), Erytech (ERYP:US), Intrasense (ALINS:FP), and DBT Group (ALDBT:FP), among others.

About WISeKey:
WISeKey (NASDAQ: WKEY; SIX Swiss Exchange: WIHN) is a leading global cybersecurity company currently deploying large scale digital identity ecosystems for people and objects using Blockchain, AI and IoT respecting the Human as the Fulcrum of the Internet. WISeKey microprocessors secure the pervasive computing shaping today’s Internet of Everything. WISeKey IoT has an install base of over 1.5 billion microchips in virtually all IoT sectors (connected cars, smart cities, drones, agricultural sensors, anti-counterfeiting, smart lighting, servers, computers, mobile phones, crypto tokens etc.).  WISeKey is uniquely positioned to be at the edge of IoT as our semiconductors produce a huge amount of Big Data that, when analyzed with Artificial Intelligence (AI), can help industrial applications to predict the failure of their equipment before it happens.

Our technology is Trusted by the OISTE/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 the Swiss Financial Services Act (“FinSA”), the FInSa’s predecessor legislation or advertising within the meaning of the FinSA, or within the meaning of any other securities regulation. 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.

The securities offered will not be, and have not been, registered under the United States of America Securities Act of 1933, as amended, and may not be offered or sold in the United States of America, absent registration or an applicable exemption from the registration requirements of said Act.