The Spanish company FacePhi, a world leader in biometric solutions for identity verification, with a strong presence in the financial sector and listed under the dual listing formula, operating at the same time in Euronext Growth in Paris and in BME Growth in Spain, has formalized a new investment agreement with the Swiss fund Nice & Green, specialized in medium and small listed companies, for a maximum amount of up to 20 million euros. Likewise, it has closed a syndicated loan for up to 13 million with Banco Santander as Sole Bookrunner Entity, and with Caixabank, Banco de Sabadell and Deutsche Bank, as Financing Entities.
The new investment agreement reached with Nice & Green will be fully materialized through the issuance of Equity Warrants for a period of two years, reaching 20 million euros as the maximum total amount available. Equity Warrants are rights over shares, which can be converted at a certain time at a price previously agreed between the parties. According to the agreement, FacePhi will be the one who, depending on its financing needs, requests from Nice & Green the amount it deems appropriate during each tranch and within the maximum established in each of them.
This is the second agreement between the Swiss firm and FacePhi. The first investment agreement, concluded in September 2019, was for an amount of 4 million euros, of which 500,000 euros corresponded to a loan and 3.5 million euros to the issuance of Equity Warrants. This operation was divided into three tranches, the last of which was completed last October.
Thanks to this first investment from Nice & Green, FacePhi has been able to maintain the high level of growth it has experienced in the last year. The injection of liquidity from this agreement has helped the company grow organically and inorganically, such as through the acquisition of Ecertic in early 2020. Likewise, it has provided the necessary resources to be able to start trading on the Euronext Growth in Paris, gaining visibility in the European market. In addition, it has allowed the workforce to be expanded, from closing 2019 with 26 employees to opening 2021 with almost 70.
As Javier Mira, CEO of FacePhi explains: “These funds mean obtaining the necessary resources to continue strengthening and expanding the workforce, which will help us continue our international expansion. Also, it will facilitate the development of new innovative technological solutions and promote commercial actions for business development both in countries where we already have a presence and in those strategic areas for the company that are still to be explored”.
Additionally, FacePhi has signed a syndicated loan for an amount of up to 13 million euros, structured in three tranches. The first of these is a loan worth 6 million euros; the second and third ones are two credits worth up to 5 million euros and up to 2 million euros respectively. The aim of this loan is the restructuring of all the company's short-term debt, extending repayment terms and achieving a more advantageous interest rate and flexibility in the provision of resources.
“After analyzing the cost and profitability of the different financing options, we have decided to bet again on Nice & Green and on the syndicated loan since they are the most optimal tools to undertake and boost the growth of FacePhi at this particular moment". “These 33 million euros give us a shield in our long-term financing and flexibility in the provision of funds, since it is not mandatory to resort to the entire loan”, concludes the CEO of the company.
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