ZignSec ”Identify Anyone, Anywhere”

ZignSec AB (publ) (“ZignSec” or the “Company”) today announces the outcome of the rights issue of shares which was announced by press release on 29 April 2024 (the “Rights Issue”). The Rights Issue has been subscribed for a total of approximately 87.5 percent. The underwriting commitments therefore did not need to be utilized. Through the Rights Issue, ZignSec receives approximately SEK 29.3 million before deduction of issue costs. The proceeds from the Rights Issue will primarily be used to strengthen ZignSec’s market presence and position the Company for continued growth, particularly in Europe, Latin America, and the Asia-Pacific region. To support this process, the company intends to significantly upgrade its technical capacity by enhancing core products and technical platform, investing in its global sales team, increasing its digital marketing efforts, and undertaking further investment in technology and development to enhance and renew the company’s core products and technical platform.

“I would like to personally express my gratitude to each and every one of you, our current and new shareholders.
Your strong support and participation in our recent rights issue, which was subscribed to almost 90%, have not only been crucial but also contributed to its success.
With this new capital, we are well positioned for an exciting future, where we plan to invest the funds recieved to expand our product offerings, further improve our technical capabilities, and strengthen our overall market presence.
We look forward to achieving our strategic goals and delivering value to you shareholders! says ZignSec CEO Glenn Mac Donald.

Outcome of the Rights Issue
The subscription period in the Rights Issue ended on 31 May 2024. In total, 117 256 054 shares were subscribed for with and without support of subscription rights, corresponding to approximately 87.5 percent of the Rights Issue. 94 292 922 shares were subscribed for with subscription rights, corresponding to approximately 70.4 percent, whereas 22 963 132 shares were subscribed for without subscription rights, corresponding to approximately 17.1 percent of the Rights Issue. The underwriting commitments therefore did not need to be utilized.

Through the Rights Issue, the Company receives approximately SEK 29.3 million before deduction of issue costs, which are estimated to amount to approximately SEK 5.2 million, of which the underwriting compensation amounts to approximately SEK 2.2 million.

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Liitteenä myös uusi haastattelu missä toimitusjohtaja käy läpi antia.

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75% yhtiön hallituksesta vaihtui yhtiökokouksessa! Yhtiön pääomistaja Alex heitti Wyzerin ja Webshieldin edustajat/perustajat ulos ja valitsi tilalle kaksi kokenutta ruotsalaista ja yhden suomalaisen hallitusammattilaisen. Valoa tunnelin päässä?

Bulletin from Annual General Meeting in ZignSec AB (publ)

The Annual General Meeting of ZignSec (publ), 559016-5261 (the “Company”) was held today, 14 June 2024. The following is a summary of the main decisions taken.

Adoption of the profit and loss account and balance sheet

The Annual General Meeting adopted the income statement and balance sheet as included in the annual report and consolidated financial statements for the financial year 2023.

Appropriations relating to the result

The Annual General Meeting decided that the result for the financial year 2023 shall be carried forward.

Discharge from liability

The Annual General Meeting resolved to discharge each of the members of the Board of Directors and the CEO from liability in respect of the management of the financial year 2023.

Board of Directors and auditor

The Annual General Meeting resolved, in accordance with the proposals submitted, that a total Board fee of SEK 500,000 shall be paid, of which SEK 200,000 to the Chairman of the Board and SEK 100,000 each to other Board members appointed by the Annual General Meeting. In order to enable the Board, during the period until the next Annual General Meeting, to assign individual members to work specifically on the development of the Company’s corporate governance functions, for example in the form of committees, in areas such as leadership, finance, regulatory compliance and IT issues, etc., it was resolved that an additional fee totalling SEK 300,000 may be paid for the period until the next Annual General Meeting, distributed among a maximum of three Board members, to the extent that the Board decides on said assignment. It was resolved, where applicable, that remuneration of SEK 60,000 be paid to each member of the audit committee. It was also resolved that the auditor’s fee shall be paid according to approved invoices.

The Annual General Meeting resolved that the Board shall consist of four members and to re-elect Marie-Louise Gefwert as ordinary member of the Board. Philip Rämsell, Olli Nastamo and Hans Isoz were elected as a new ordinary members of the Board. It was decided to re-elect Marie-Louise Gefwert as Chairman of the Board.

Further, it was resolved to appoint the registered accounting firm Ernst & Young Aktiebolag as the Company’s auditor with the authorised auditor Charlotte Catrine Holmstrand as auditor in charge until otherwise notified.

Authorisation for the Board of Directors to decide on the issue of shares, warrants and/or convertibles
The Annual General Meeting decided to authorise the Board of Directors, on one or more occasions and at the latest until the next Annual General Meeting, to decide to increase the Company’s share capital by issuing new shares and to issue warrants and convertibles.

New issues of shares, as well as issues of warrants and convertibles, may be made with or without deviation from the shareholders’ preferential rights and with or without provision for contribution in kind, set-off or other conditions. Pursuant to Chapter 16 of the Swedish Companies Act, the Board of Directors may not, by virtue of this authorisation, decide on issues to members of the Board of Directors of the group, employees and others.

Issues without deviation from the shareholders’ preferential rights may be made to the extent permitted by the current Articles of Association, or by any other Articles of Association that the shareholders may adopt by the required majority during the period up to the next Annual General Meeting. The total number of shares covered by issues in deviation of the shareholders’ preferential rights may, after such issues, represent a total dilution of no more than twenty (20) percent of the shares of the Company at the first time the authorisation is used.

An issue decided by virtue of the authorisation shall be made at the market subscription price, subject to the market issue discount, if any. An issue decided by virtue of the authorisation shall be made in order to provide the Company with working capital, to increase the Company’s financial flexibility and to enable acquisitions by payment in shares.

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Nyt on osakkeessa hyvä pöhinä. Osakeanti oli onnistunut ja markkinat ovat palkinneet osakeomistajat liki 100% nousulla. Tämä on mielestäni perusteltua, koska kassa on taas täynnä käteistä.

Seuraako tätä yhtiötä kukaan muu? Tämä ketju on ainakin ihan kuollut vaikka yritin puhaltaa siihen hieman elämää jakamalla uutisia.

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Seuraan. Kiva kun oot laittanu päivityksiä. Toivotaan et uutisvirta jatkuu hyvänä ja saatais tuloskin plussalle.

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Seurannassa on ja tuli merkattuakin annissa täysi potti. Positiivisempi pöhinä yrityksen ympärillä otetaan ilolla vastaan ja toivottavasti rahoilla, uusilla asiakkuuksilla ja hallituksella saadaan firmaa uuteen nousuun

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Vaikka pörssissä on heinäkuussa hiljaisempaa, niin ZignSec jatkaa hyvässä myötätuulessa. Yhtiö on myös päivittänyt omistajaluettelon ja johdon omistustiedot. Näyttää siltä, että CTO ja hallituksen puheenjohtaja on tankannut edellisessä annissa kunnolla.

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Impala Nordic inleder analysbevakning på ZignSec AB (publ) (“ZignSec” eller”Bolaget”) och har upprättat en analys på Bolaget.

ZignSec är en RegTech-koncern som tillhandahåller en digital KYC, KYB och AML plattform. Plattformen erbjuder lösningar som används av företag som i sin tur kan optimera sina processer för ”onboarding” av såväl bolagskunder som konsumenter. För att främja hållbar tillväxt har ZignSec implementerat kostnadsbesparingar på cirka 14 MSEK per år.

Genom en nyligen genomförd företrädesemission har ZignSec säkrat en nettolikvid på cirka 24,1 MSEK. Framtida tillväxt förväntas främst genom att säkra större kundavtal. Impala Nordic prognostiserar att ZignSec minskar sin burn-rate till mellan 2-3 MSEK per kvartal under 2024, med en årlig omsättningstillväxt på cirka 10 %.

I Impala Nordics grundscenario förväntas ZignSec nå lönsamhet på EBITDA-nivå år 2026, trots mindre förluster under 2024 och 2025. Starka faktorer inkluderar låg kundtapp, användning av Bolagets lösningar av ledande aktörer som Deutsche Bank, samt det breda utbudet av lösningar som ger en unik konkurrensfördel.

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Hyvin on osake pärjännyt vastatuulista huolimatta. Q2 raportti kyllä jännittää. Nyt ei olisi varaa yhteenkään lisäpettymykseen.

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Julkaistu 16.8.2024

Daniel Grech, CTO of ZignSec, discussed how he leverages his background in Computer Science and Statistics in the development of KYC and KYB solutions at ZignSec. Daniel outlines how ZignSec uses AI to automate compliance processes, ensuring both global scalability and adherence to regulatory requirements, while allowing experts to concentrate on high-risk cases. Daniel’s approach is to enhance efficiency and ensure security in digital identification.

Can you tell us a little about your background and what led you to your current role as CTO at ZignSec?

My background is in Computer Science and Statistics, topics that I have been passionate about since my student days. Throughout my career, I have worked in various roles at several technology companies, starting as a systems programmer working on virtualization systems and evolving into more business-oriented roles, namely assisting large oil and gas companies in automating and optimizing their procurement processes.

I have always been passionate about startups and the idea of creating something new out of nothing. After holding a variety of technical lead roles at various startups in the Fintech sector, I started to understand the complexity of business processes that companies in regulated environments need to manage and orchestrate. This led me to co-found a company called Wyzer that aimed to simplify this by providing a platform on which business processes could be orchestrated and operated in a seamless manner. Wyzer was eventually acquired by ZignSec which was one of it’s clients at the time and this eventually led to me becoming CTO of ZignSec. Today I oversee the development of ZignSec’s KYC and KYB offerings via an orchestration platform that aims to combine the two.

What role do artificial intelligence (AI) and machine learning play in ZignSec’s products and services? Can you provide some concrete examples of how you use these technologies?

The world of RegTech is already being significantly disrupted by AI. There are several roles in the regulated space that primarily involve analysing data, looking for patterns in such data and making a reasonable decision based on such an analysis. I believe that these roles can be significantly augmented through the use of artificial intelligence – by automating the majority of such decisions and only requiring specialised human knowledge in edge cases or high-risk cases.

This is the approach we have implemented in our KYB merchant monitoring platform – where we monitor online merchants to validate that they are compliant with applicable laws and regulations. Here, we utilise fine-tuned large language models to understand the context and content of eCommence pages, turning unstructured data into structured data to which we can apply rules in an automated manner. If exceptions are spotted or the system is in doubt, a human expert is brought into the loop. However, the AI system can deal with most cases and without needing any human intervention. This frees us the analysts’ time to focus on the cases that have the highest potential to pose a problem – the cases in which specialised human knowledge is most valuable.

Considering the various regulatory requirements in different countries, how do you ensure that ZignSec’s solutions remain compliant and scalable globally?

The regulated world is fragmented and complex and it is very challenging for a globally regulated business to understand the different geographical regulatory requirements and to maintain compliance with them. This is the core problem that ZignSec solves through its KYC offerings.

We do this by offering a mixture of globally applicable solutions and solutions that are highly specialised in specific geographies or industries. The solutions that form our platform’s basis can generally be applied to many geographies and industries. Such solutions are then augmented with more localised solutions when required and tailored to specific markets through an orchestration platform that can handle the complexities of dealing with multiple markets.

We also ensure that our technology is scalable. We operate a fully cloud-native platform that is based on the concept of microservices – allowing us to maintain flexibility in how and when we scale various aspects of our platform.

Security and privacy are crucial in digital identification. How does ZignSec work to ensure that your services maintain the highest possible security standards?

ZignSec has prioritised and understands the importance of security and privacy since day one and we have always strived to meet the highest standards in these fields. An example of this is that we achieved our ISO 27001 certification at an early stage. Security and privacy are central to all our internal processes and thinking. We operate a risk framework that lets us quantify the extent of risks we face and determine mitigating measures for each of them. This frame of thought allows us to scale our business without scaling the level of risk that we take.

Can you describe some of the most innovative solutions you have developed or are currently developing at ZignSec?

The most innovative solutions that we have recently developed or are currently working on mostly revolve around the use of AI in making sense of unstructured data and applying our domain knowledge to such data to simplify and make business processes related to compliance more efficient.

Examples of such solutions include:

  • A Proof of Address solution that can make sense of utility bills and bank statements in an automated manner to allow our customers to use such documents as proof of address for their customers.
  • A solution that can automatically determine the industry of a business from its website and classify the business by its Merchant Category Code (a categorisation required by card scheme rules that forms the basis of the underwriting process for online merchants).
  • A solution that can analyse the terms and conditions of an online shop and extract structured data from it in a manner that allows for automated risk-based decisions.

What are the biggest technological challenges you have encountered in the development of your identification services, and how have you overcome them?

Developing resilient verification services has presented a multifaceted challenge. The need to harmonise disparate technology stacks across KYC, KYB, and platform systems, while simultaneously managing geographically distributed teams, has demanded strategic alignment and efficient collaboration. Moreover, the imperative to innovate while maintaining legacy systems has required careful resource allocation and a balanced approach to technological evolution. By encouraging a culture of collaboration, knowledge sharing, and continuous improvement, we have been able to navigate these complexities and deliver effective verification solutions.

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Liikevaihto on kasvussa! Näyttää siltä, että yhtiön johto on saanut tilanteen hallintaan.

Julkaistu 21.8.2024

Interim report for the period 1 April 2024 to 30 June 2024

ZignSec

Second quarter in summary

  • Net revenue amounted to SEK 21.8 (21.1) million, an increase of 3% compared with the corresponding quarter the year before.
  • EBITDA amounted to SEK -1.9 (-7.1) million.
  • Cash and cash equivalents amounted to SEK 25.1 (8.2) million.
  • Equity amounted to SEK 139.6 (184.5) million.

Significant events during the second quarter

  • ZignSec’s subsidiary Web Shield signed a customer agreement with a leading Nordic-Baltic banking group to streamline their onboarding process for new merchant accounts and monitoring existing clients.

  • The Board initiated a process to evaluate ZignSec’s potential strategic alternatives to maximize shareholder value, which may include a sale of the Company or other possible transactions.

  • In June, ZignSec carried out a rights issue that was subscribed for a total of approximately 87.5 percent. The rights issue generated approximately SEK 24.1 million after issuing costs.

Significant events after the end of the second quarter

  • ZignSec’s newly launched proof of address solution has started to generate revenue, and several new agreements has been signed with both new and existing clients.

A comment from the CEO Glenn Mac Donald:

In Q2 2024, net revenue reached SEK 21.8 million, an increase by 3% compared to the same period last year. Our core segments, Know Your Business (KYB) and Know Your Customer (KYC), have shown robust performance with stable margins. Our priorities for the remainder of 2024 include deepening our presence in key markets, enhancing our product portfolio, and driving further operational efficiencies.

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Homma näyttää menevän eteenpäin. Liikevaihto saisi kasvaa silti kovempaa vauhtia. Toivottavasti keväällä tehdyt sopimukset ja raportissa mainitut kaupat korjaavat kasvua. Ebitda kehitys ollut hyvää ja kulujen karsiminen näkyy viivan alla.

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Tänään (22.8) julkaistu lyhyt tuloskatsaus.

I vår initieringsanalys estimerades ett grundscenario för 2024 där nettoomsättningen uppgår till 89 MSEK, vilket fortsatt är inom räckhåll om tillväxten fortsätter i H2 2024. Samtidigt befinner sig Bolaget i en övergångsfas och tillväxten bedöms huvudsakligen ta fart under 2025.

Olen samaa mieltä. Yhtiön tilanne nyt vakaa ja uudella toimarilla selkeä suunta. Jos vanhojen tuotteiden liikevaihdon lasku saataisiin taittumaan, niin alkaisi ehkä uusien asiakkuuksien kasvu näkymään luvuissa. Aika mennä ostoksille, vai pitäisikö vielä odottaa lisätodisteita?

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Discordista poimittu kuva. Rekrytointi joka tukee kasvua / asiakastyytyväisyyttä saa minulta täyden tuen!

Ehkä itse haluaisin vielä lisätodisteita. Kurssi noussut annin hinnoista mukavasti ja nyt pitäisi sitten todistaa, että tällekkin nousulle on aihetta. Cash flow kun saadaan positiiviseksi, niin saatan ostaa lisää jos muuten merkit ovat samat kuin nyt.

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Siihen loppu tämä tarina, tarjoushinta 1,38 SEK.

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Anteeksi tyhmyyttäni, mutta pitääkö myydä 17 lokakuuta mennessä jos haluaa rahojaan takaisin ? Tänään kurssi 1.27kr.

Eikös tuo ole ihan ostotarjous, eli jos pidät loppuun asti, niin saat 1,38sek osakkeelta? Melko varmasti toteutuu kun on oli +100% sulkeutumishintaan. Ostotarjouksessa ei varmaankaan joudu maksamaan edes kaupankäyntihintoja, eli jos myy nyt niin sekä saa vähemmän, että joutuu kaupankäyntikulun maksamaan?

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