SEALSQ Corp's (NASDAQ:LAES) are trading lower Wednesday following the company's announcement of a registered direct offering priced well below recent trading levels. Here's what you need to know.

What To Know: The company revealed a securities purchase agreement with institutional investors to sell 13,157,896 ordinary shares at a public offering price of $1.90 per unit. The offering is expected to generate gross proceeds of $25 million before deducting commissions and expenses. Investors have reacted negatively to the pricing, which represents a steep discount and raises concerns about potential dilution.

SEALSQ plans to use the funds to advance the deployment of its post-quantum semiconductor technology and ASIC capabilities in the United States, as well as to support working capital and general corporate purposes. The offering, managed by Maxim Group LLC as the sole placement agent, is scheduled to close on or around Dec. 19 2024, pending customary closing conditions.

This move comes under a previously approved shelf registration statement filed with the U.S. Securities and Exchange Commission in late November.

SEALSQ focuses on post-quantum cryptography and semiconductor solutions, which aim to address emerging threats posed by advancements in quantum computing. However, the immediate reaction to the offering potentially highlights investor unease over the financial terms and their impact on shareholder value.

LAES Price Action: SEALSQ shares were down 21.5% at $2.33 at the time of writing, according to Benzinga Pro.

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