FacePhi Biometría S A : protects its shareholders by ending issuance of convertible bonds with the support of its main investor, Nice & Green

• The Spanish enterprise makes the decision not to issue more convertible bonds, thus ensuring a more transparent capital structure that protects the shareholders' investment.

Facephi consolidates its financial position by deciding not to continue issuing convertible bonds. This decision - which has the backing of the company's main investor, Nice&Green - underlines its financial stability and commitment to sustainable growth.

The partnership between Nice&Green and Facephi began in 2019 when the Spanish company and the Swiss fund entered into a financial agreement for a total of € 4 million, articulated by issuance of equity warrants convertible into company shares. On termination of this agreement, the parties entered into another investment agreement for the sum of 20 million euros - also articulated by means of equity warrants - from which the company obtained financing worth 10 million euros. The business relationship has thrived on a foundation of mutual trust ever since.

Building on the positive results of these alliances, in 2023 Facephi and Nice&Green extended the scope of their collaboration with a new investment with a limit of 20 million euros, also by means of issuance of convertible bonds.

In January 2024, due to Facephi's excellent performance, the disposable investment was reduced from 20 to 11.1 million euros. The company had drawn down 6.9 million by January, leaving 4.2 million available. It was agreed that Facephi could dispose of this investment in tranches of 600,000 euros over seven months until July 2024. However, after availing itself of only four of the seven tranches for a total of 2.4 million euros, Facephi decided to cancel issuance of the conversions planned for May, June and July, leaving 1.8 million untouched.

This situation has prompted Facephi to change its financing strategy by putting an end to issuance of convertible bonds, a decision the company is entitled to take unilaterally in accordance with the contract. The decision, however, was taken with the consent and backing of the company's main shareholder, Nice&Green.

This change of course is aligned with the company's drive to achieve greater financial efficiency and represents a responsible approach to growth and resource management. With a holding of roughly 16% of Facephi's capital stock, Nice&Green's support of the decision reinforces the strategic alliance between the two enterprises and their confidence in the future growth of the former.

By taking control of its own financing, Facephi ensures a more transparent capital structure and protects shareholder participation. The decision enables it to enhance its financial stability, which in turn ensures that it will continue to grow efficiently and foster greater competitiveness.

Facephi's growth has burgeoned since it began to work with Nice&Green. The facial recognition and authentication enterprise now has a portfolio of over three hundred clients in more than 25 countries worldwide, an expansion attributable to significant investment in innovation and technology resulting in products and solutions based on adaptive architectures that ensure flexible deployment compatible with multi-platform environments, features that have a direct impact on the company's ability to compete.

As Javier Mira, Facephi's CEO and Chairman of the Board puts it: "This decision enables us to protect our minority shareholders. We will see the share price rise over the next few months as the dilution effect of bond issuance wears off. The new policy demonstrates our commitment to our shareholders and our capacity to adapt our financing strategy to market demands. We are extremely grateful to Nice&Green for their unstinting support over the years and at the dawn of the new era for both companies in which we will continue to grow together".