Cyber Security 1 AB: Business combination with a Special Purpose Acquisition Company

CYBER1 to explore achieving its US listing ambitions through a business combination
 with a Special Purpose Acquisition Company

London United Kingdom – 03 December 2019, Cyber Security 1 AB (publ) (“CYBER1”), (Nasdaq:CYB1,OTCQX:CYBNY), a leading supplier of cyber security solutions with operations in Europe, Africa and the Middle East, announces today its intention to seek collaboration with a Special Purpose Acquisition Company ("SPAC"), as an effective means of achieving access to the US capital markets.

As previously announced (press release accessible here), CYBER1 is exploring strategic alternatives to a listing in Sweden. CYBER1 and its advisors have identified the following to be the current viable options:

•  a secondary public offering in the US market;

•  upward progression of the CYBER1 American Depositary Receipt (OTCQX: CYBNY) programme from the current Level 1 to Level 3 with an associated capital raise:

•  seeking out a Nasdaq or NYSE listed SPAC to facilitate a business combination with CYBER1. 

Following due consideration, the Board has selected to explore the option of a business combination with a SPAC as the preferred method of achieving accelerated access to the US public markets. The Board is of the view that a SPAC offers the most efficient and flexible route to a main market US listing, in addition to providing capital to fund CYBER1's expansion plans.

A SPAC is a publicly traded company that raises a blind pool of capital through an initial public offering (IPO) for the purpose of effecting a business combination with an existing company.

Key advantages of a business combination with a SPAC include:

1.  Existing main market US-listed company with a clean trading background
2.  Pre-Capitalised investment vehicle with funds held in Trust
3.  Experienced dealmakers/operators as sponsors
4.  Improved access to:
   1.  Banking network
   2.  Analyst network
   3.  Investor network
   4.  Talent
   5.  US acquisition targets
   6.  Growth capital

Any change from current listing venue to the US Market would be subject to any necessary approvals or acceptances by CYBER1's shareholders.

Kobus Paulsen, Chairman of CYBER 1, commented: “After assessing a number of viable options in achieving our strategic objectives and our ambitions to enter the United States market, we believe that collaboration, merger or business combination with a SPAC will best complement the liquidity objectives and growth plans of CYBER 1. We are actively preparing the company internally for the various governance changes necessary and look forward to engaging with our partners and the US investor community on this exciting next phase for the company.”

More information relating to the end to end SPAC process can be found here.