London United Kingdom –18 March 2019 – Cyber Security 1 AB (Publ) (the “Company”) (Nasdaq First North: CYB1), an international leader in Cyber security, GRC and PCI services today announces a private placement of new shares (“New Shares”) through a directed new share issue to a qualified investor (the “Private Placement”).

The issue of the 3,250,976 New Shares at a share price of €0.25 results in the Company having 295,486,482 issued shares from 292,235,506 previously, a dilution of 0.99% and an increase in share capital of €850.818 to a share capital at today’s date of €77,332.24178.

The investment with the Company is undertaken by a number of parties:

  • Mr K Paulsen (CYBER1 Chairman)
  • Ramphastos Participaties Cooperatief U.A. (existing CYBER1 shareholder)
  • Brownstone Capital LLP (existing CYBER1 shareholder)
  • Mr H van der Linden (investor)
  • Mr A Verhoeven (investor)

who collectively have invested €812,744.00 for the 3,250,976 New Shares in the Private Placement.

The price €0.25 per share for the Private Placement has been agreed in arms-length negotiation with each of the parties as is at a premium to the current share price.

The Company intends to use the proceeds from the Private Placement as the first of a tranche of expected new funding to strengthen the working capital position of the Company, as well as to finance continued operations, further development of its cybersecurity service offerings, and corporate expansion.

The reason for conducting a directed new share issue via a Private Placement and thereby deviating from existing shareholders’ preferential rights is as a result of a number of factors, including:

  • the view of the Company’s Board of Directors that, given the current constitution of the Company’s shareholders, a non-directed new share issue would run the risk of not being fully subscribed;
  • the lower costs of the process (including underwriting) of the directed new issue;
  • the timing advantage of a directed new issue, taking into account the current market fluctuations of the Company’s share price; and
  • the desire of the Board of Directors to bring a new, influential shareholder into the Company.

The Board has concluded that the reasons above collectively indicate that it is in the shareholders’ interest, as well as that of the Company as a whole, that the issue of the New Shares is made with deviation from existing shareholders’ preferential rights.

The Private Placement is subject to, inter alia, a resolution by the Board of Directors of the Company and is in line with the authorisation to issue new shares given to the Board of Directors at the AGM on the 28 June 2018.

Certified Adviser
Mangold Fondkommission AB is the Company’s Certified Adviser.
Telephone: +46 (0)8 5030 1550
E-mail: info@mangold.se

FOR FURTHER INFORMATION, PLEASE CONTACT:
Tim Metcalfe / Miles Nolan, IFC Advisory,
Investor Relations contact, CYBER1
Email: cyber1@investor-focus.co.uk

Matt Glover or Najim Mostamand, CFA, Liolios Group,

US-Investor Relations contact, CYBER1

E-mail: cyber1@liolios.com

This information is information that CYBER1 is obliged to make public, pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 18th March 2019 at 17:00 CET.

ABOUT CYBER1

CYBER1 is engaged in providing cyber resilience solutions and conducts its operations through physical presences in Sweden, South Africa, the UK, Kenya, Germany, Austria, Turkey, Greece, Italy, the Ukraine and the United Arab Emirates. Listed on Nasdaq First North (Nasdaq: CYB1.ST) and as an American Depositary Receipt (OTCQX: CYBNY), the Group delivers services and technology licenses to enhance clients’ protections against unwanted intrusions, to provide and enhance cyber resilience and to prevent various forms of information theft. CYBER1 had revenues of 44.54m EUR in 2018 and employed 239 personnel at the end of Q4 2018. For further information, please visit www.cyber1.com/investors

For further information, please visit: https://cyber1.com