Sequans Communications S.A. announced Monday that it will launch a bitcoin treasury strategy and raise approximately $384 million through private placements to fund the initiative.
The France-based provider of 5G and 4G Internet of Things (IoT) semiconductors said the move reflects a broader financial strategy, adding digital assets to its corporate treasury alongside its continued development of cellular connectivity products.
The financing consists of $195 million in equity securities and $189 million in convertible debentures. The private offerings will close around July 1, pending shareholder approval at Sequans’ June 30 general meeting and satisfaction of closing conditions. The debt placement is contingent on raising at least $195 million in equity proceeds.
Partnerships and Financial Terms
Sequans stated that it plans to collaborate with Swan Bitcoin, a U.S.-based firm specializing in Bitcoin treasury management services. The partnership will support the implementation of the new initiative, though no further details on purchase timelines or asset allocation were provided.
Under the terms of the private placements, the company will issue approximately 1.39 billion ordinary shares, represented by 139.3 million American Depositary Shares (ADSs), and common warrants to purchase about 208.9 million ordinary shares. The combined purchase price is $1.40 per ADS and warrant, equivalent to $0.14 per ordinary share.
Additionally, Sequans will issue secured convertible debentures totalling $189 million in principal, along with warrants to acquire roughly 202.5 million ordinary shares. The warrants from both offerings will be exercisable within 90 days following the closings.
Northland Capital Markets and B. Riley Securities are acting as joint lead placement agents. Yorkville Securities is also serving as a placement agent. Legal counsel for the transaction includes Lowenstein Sandler LLP and ARCHERS (AARPI) for Sequans and Goodwin Procter LLP for the placement agents.
Regulatory Considerations
The securities are being offered through a private placement under Section 4(a)(2) of the Securities Act of 1933 and Regulation D. The securities have not been registered with the U.S. Securities and Exchange Commission and may not be sold without meeting applicable exemption criteria.
Sequans has agreed to file resale registration statements with investors in accordance with registration rights agreements. Meanwhile, CEO Georges Karam said the company remains focused on supporting customers with its 4G and 5G product lines and aims to maintain momentum in the evolving IoT market.
