INSIDE Secure Strengthens Its Financial Flexibility by Arranging an Equity Line of Financing With Kepler Cheuvreux

Regulatory News:

Inside Secure (Euronext Paris: INSD), a leader in embedded security solutions for mobile and connected devices, announces the arrangement of an equity line of financing with Kepler Cheuvreux.

This funding mechanism combines flexibility and security, complementing the other financing sources already in place and the existing cash position¹. It is particularly well-suited to support the strategic repositioning already initiated by INSIDE Secure, which has started to bear fruit.

Under its agreement with INSIDE Secure, Kepler Cheuvreux has undertaken to subscribe for new shares, over a period of two years, up to a maximum allocation of 3,400,000 shares (or 9.9%² of the existing share capital), subject to the conditions defined by both parties being respected.

INSIDE Secure will issue new shares at a 6% discount over the last three trading days preceding each issue. This discount allows Kepler Cheuvreux to take the role of financial intermediary and guarantor under the underwriting agreement.

"This agreement with Kepler Cheuvreux fits INSIDE Secure’s current momentum and will contribute to increase the company’s financial flexibility. We can modulate the use of this financing according to the evolution of our projects and potential opportunities, in the best interest of the company and of our shareholders,” commented Richard Vacher Detournière, INSIDE Secure’s Chief Financial Officer.

Should the equity line be used in full³, a shareholder with an interest of 1% in INSIDE Secure’s share capital before would see its ownership become 0.91% of the share capital. The equity facility is put in place pursuant to the 16^th resolution of the general meeting of its shareholders on June 19, 2013.

The number of shares issued pursuant to this agreement and admitted to trading on the Euronext Paris regulated stock market will be published in a Euronext notice, together with monthly disclosure of the total number of shares and voting rights making up the Company’s share capital.

About INSIDE Secure

INSIDE Secure (NYSE Euronext Paris FR0010291245 – INSD) provides comprehensive embedded security solutions. World-leading companies rely on INSIDE Secure’s mobile security and secure transaction offerings to protect critical assets including connected devices, content, services, identity and transactions. Unmatched security expertise combined with a comprehensive range of IP, semiconductors, software and associated services gives INSIDE Secure customers a single source for advanced solutions and superior investment protection. For more information, visit www.insidesecure.com.

^{1 $36.3 million at December 31, 2014}

^{2 Based on the 34,328,848 shares making up INSIDE Secure’s share capital at March 31, 2015}

^{3 Leading to the issue of 3,400,000 new shares, corresponding, as an example, to an amount of EUR 7.7 million at closing share price at April 14, 2015 (€2.40)}