Leading US Funds Invest USD 22 million in Thinfilm‏

OSLO, Norway, June 18, 2015 – Thin Film Electronics ASA (“Thinfilm” or “the Company”) (OSE: THIN.OL; OTCQX: TFECY), a leader in the development and commercialization of printed electronics and smart systems, today announced  a private placement, exempt from registration under the US Securities Act of 1933, in the Company (the “Private Placement”) in which several US funds (“Investors”) have subscribed for 34,034,653 shares in the Company, at a share price of USD 0.64640 (equalling NOK 5,01 per share) for a total investment of USD 22 million. Upon completion of the Private Placement, the Investors will hold 6.1 % of the shares in the Company. The terms of the subscription is based on the additional issuance of 17,017,326 warrants to the investors as described below. 

“The market response to our launch of NFC OpenSense product has been exceptionally strong,” says Davor Sutija, CEO, Thinfilm. “This investment will allow significant expansion of our printed logic production in order to meet expected demand for both NFC OpenSense and our EAS products, from current and prospective customers, including Diageo, who showcased the Connected ‘Smart Bottle’ together with Thinfilm in March 2015. It is an opportunity to significantly scale the Company.” 

Proceeds from the Private Placement will fund an expansion of Thinfilm’s PDPS (printed dopant polysilicon) manufacturing at its facility in San Jose, California.  The expansion is slated to increase the facility’s capacity for production of EAS and NFC OpenSense tags significantly. 

NFC OpenSense tags are thin, flexible tags that can detect whether a product is factory-sealed or has been opened.  The tags wirelessly communicate that information, with a globally unique product id, with the tap to an NFC-enabled smartphone or device. Leading brands have engaged Thinfilm in demonstrating applications of the tags in mobile marketing, product security, and supply-chain tracking. 

Thinfilm’s EAS product is in global roll-out with one of the largest fast fashion retailers, in conjunction with partner Nedap Retail. 

Given the Company’s desire to attract an additional investor base in the US, it is the Board’s view that a private placement is in the Company’s best interest.

Following the resolution by the board of directors, the share capital is increased by NOK 3,743,811.83 by the issue of 34,034,653 new shares. Following the completion of the Private Placement, Thinfilm’s share capital will be NOK 61,077,484.27, divided into 555,249,857 shares with a nominal value of NOK 0.11 per share. 

The allocated shares in the Private Placement will be tradable on the Oslo Stock Exchange immediately after the registration of the capital increase in the Norwegian Register of Business Enterprises, expected to be from 22 June, 2015, through delivery to the Investors of new shares and existing unencumbered shares in the Company borrowed by the Company, the latter from certain existing shareholders. The Company will prepare a listing prospectus. 

Pursuant to their subscription in the offering, the Investors will also receive 17,017,326 warrants, each with an exercise price of NOK 6.10. The warrants will be exercisable immediately, and expire in 3 years. The issuance of warrants is subject to the approval of an extraordinary general meeting (the “EGM”) in Thinfilm. An EGM will be called for as soon as practical and will take place on or about 14 July 2015. 

Mr. Sutija notes, “Leading US investors are now significant shareholders in Thinfilm. This is a key milestone for the Company and follows our listing on the OTCQX marketplace with Cowen and Company, LLC as our Principal American Liaison.  We believe growing the international investor base will benefit the Company and our shareholders as we scale to deliver our vision for the Internet of Everything.” 

Cowen and Company, LLC has acted as sole Placement Agent in this transaction. 

The investor presentation used in conjunction with the marketing of the transaction is available at www.thinfilm.no/investor-relations/reports-presentations/ 

This announcement does not constitute an offer of securities for sale in the United States. The securities referred to in this announcement have not been and will not be registered under the Securities Act of 1933 (the “Securities Act”) and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. There will be no public offering of securities in the United States in connection with this transaction.

Forward-Looking Statements 

Forward-looking statements reflect our current beliefs and are based on information currently available to us and on assumptions that we believe are reasonable. These assumptions include, but are not limited to, the increase in PDPS (printed dopant polysilicon) manufacturing capacity as a result of the use of proceeds from the placement. Actual results and developments may differ materially from the results and developments discussed in the forward-looking statements as they are subject to a number of significant risks and uncertainties which can be beyond our control.  The reader is cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements. Forward-looking statements in this press release are made to describe management’s expectations and assist shareholders in understanding our financial position. Readers are cautioned that the forward-looking statements presented in this press release may not be appropriate for other purposes. We are under no obligation (and expressly disclaim any obligation) to update or alter the forward-looking statements whether as a result of new information, future events or otherwise unless specifically required by applicable securities legislation.


About Thin Film Electronics ASA

Thinfilm is a leader in the development and commercialization of printed electronics and smart systems. The first to commercialize printed, rewritable memory, the Company is creating printed systems that include memory, sensing, display, and wireless communication, all at a low cost unmatched by any other electronic technology. Thinfilm’s roadmap integrates technology from a strong and growing ecosystem of partners to enable the Internet of Everything by bringing intelligence to disposable goods. 

Thin Film Electronics ASA (“Thinfilm”) is a Norwegian company with headquarters in Oslo, Norway listed on the Oslo Stock Exchange; product development and production in Linköping, Sweden; product development, production, and business development in San Jose, California, USA; and sales offices in the United States, Japan and Singapore. For more information, visit http://www.thinfilm.no or follow us on Twitter @ThinfilmMemory.


For more information on Thinfilm please contact:

Bill Cummings
Thin Film Electronics ASA
VP, Marketing & Communications
+1 408-503-7312

Jennifer Smith
Blanc & Otus for Thin Film Electronics ASA
+1 415 856 5152