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UPDATE 1-Next Biometrics probably needs more cash in next 12 months
November 14, 2017 / 10:02 AM / 5 days ago

UPDATE 1-Next Biometrics probably needs more cash in next 12 months

(Adds outlook, Rollen context)

OSLO, Nov 14 (Reuters) - Fingerprint sensor firm Next Biometrics probably needs to raise more money during the next 12 months, it said while presenting third-quarter earnings on Tuesday.

** CEO Ritu Favre: expects cash burn to rise in Q4 and Q1

** CEO: we don’t believe there is a full 12 months of cash in the company, and we are working on that scenario

** Cash flow from operating activities was negative 36.8 million Norwegian crowns ($4.51 million) in Q3 compared to negative NOK 39.6 million in Q2

** Cash and cash equivalents amounted to NOK 123.1 million by the end of the third quarter of 2017

** Last time it raised money was on Feb 7, 2017, through a private placement of NOK 156 million at a price of NOK 134 per share

** Share price of Next drops 7.4 pct to NOK 46.3 at 0944 GMT on Tuesday

** Next Biometrics is developing fingerprint sensors based on its patented NEXT Active Thermal principle

** CEO: we are confident in our ability to achieve profitable revenue growth within our targeted markets of smart cards, government ID, notebooks and access control

** CEO says has increased focus on solutions development for smart card and government ID

** CEO says company will have a sample of a new smart card module ready in Q1 2018

** Next’s business potential in the smart card market, such as for payment card identification, was key to a 2015 decision by Hexagon AB CEO Ola Rollen’s private investment firm Greenbridge to inject NOK 120 million in a private placement in Next

** Rollen is currently on trial in Oslo, accused of insider trading for share purchases made in Next Biometrics in the days ahead of the private placement. He has pleaded not guilty. A verdict in the case is expected in early 2018 ($1 = 8.1683 Norwegian crowns) (Reporting by Ole Petter Skonnord, editing by Terje Solsvik)

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