Neonode (NEON) Enters $8.7M Common Stock, Warrants Private Placement

August 12, 2016 7:09 AM EDT

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Neonode Inc. (Nasdaq: NEON) announced it has entered into definitive agreements with institutional and accredited investors for the private placement of $8.7 million of Neonode’s common stock and common stock warrants.

Pursuant to the terms of the private placement, Neonode has agreed to sell an aggregate total of 8,627,352 shares of common stock. Of this amount, $8.2 million will be sold at a price of $1.00 per share to outside investors and an aggregate of $500,000 will be sold at a price of $1.17 per share to Thomas Eriksson, Chief Executive Officer of Neonode, and Remo Behdasht, SVP AirBar Devices at Neonode.

Certain outside investors whose purchase of shares would make them the beneficial owners of more than 9.99% of Neonode’s outstanding common stock will purchase pre-funded warrants in lieu of common stock. These pre-funded warrants for outside investors are included in the aggregate share total above.

Additionally, for all investors in the private placement including Mr. Eriksson and Mr. Behdasht, Neonode will issue warrants to purchase an aggregate of 4,313,676 shares of common stock at an exercise price of $1.12 per share that will expire five and one-half years from the date on which the warrants are issued and are non-exercisable for the first six months. If the warrants are fully exercised, Neonode will receive an additional $4.8 million.

The closing of the private placement offering is subject to the satisfaction of customary closing conditions.

Craig-Hallum Capital Group LLC is acting as exclusive placement agent in connection with the offering.

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