Next Biometrics is seeking to raise 50 million Norwegian kroner through a partially guaranteed rights issue, offering shares at a price of 0.10 kroner each, according to a company announcement on Wednesday.
The offering represents a significant discount to the current market value of the company’s shares, amounting to an 89 percent reduction. The funds are intended to bolster the company’s financial position, though specific plans for the capital have not been disclosed.
The move follows a period of financial difficulty for several publicly traded companies in Norway, with other firms, including Flyr, similarly recently undertaking emergency fundraising efforts. A recent podcast from Finansavisen highlighted the distressed financing situation at Flyr, describing it as a “crisis emission at a dumping price.”
The timing of Next Biometrics’ announcement comes after Lifecare completed a similar emission in January, where existing shareholders faced a 75 percent devaluation of their holdings. The Finansavisen reported on January 6th that Lifecare’s finance director resigned in the middle of that emission process.
Separately, Akobo Minerals recently avoided a similar emergency funding round after receiving a 30 million kroner investment from Ethiopia’s state investment fund, according to Finansavisen reporting. Akobo Minerals’ CEO, Jørgen Evjen, stated the company is now in a “solid situation.”
