BUSINESS UPDATE
Oslo, 1 July 2026: The Board of Directors (“the Board”) of NEXT Biometrics Group ASA has completed an initial strategic and operational review of the Company following the appointment of the newly constituted Board.
The current Board was constituted on 16 June 2026, when Jon H. Nordbrekken (owning 100% of Valset Invest AS, being the Company's largest shareholder with an ownership interest of approximately 17%) joined the Board in accordance with the resolution made by the annual general meeting of the Company on 19 May 2026, and Siri Børsum retired from the Board.
Although the newly constituted Board has had just over two weeks to assess the Company's position, it has conducted an extensive review of the Company's operations, financial position, technology portfolio and strategic alternatives. The Board has concluded that immediate actions are required to strengthen the Company's financial position, significantly reduce its cost base and sharpen its strategic focus.
As a result of this review, the Board has concluded that the Company's future should be centered exclusively around its next-generation Anywhere-in-Display™ technology, which the Board believes represents the Company's most attractive long-term commercial opportunity. Consequently, the legacy fingerprint sensor business will no longer constitute the Company's primary strategic focus.
To support this strategic transition, the Company has initiated discussions with several external parties regarding the potential sale of its existing fingerprint sensor inventory, as well as the sale or licensing of selected intellectual property rights related to the legacy business. The Company has taken the decision to outsource its manufacturing, including production equipment and related operational resources. These initiatives are intended to maximize value from the existing business while ensuring continuity of supply to current customers.
In parallel, the Board has initiated further cost reduction measures with the objective of reducing the Company's annual operating cost base significantly below the approximately NOK 65 million annual run rate reported in the Company's Q1 2026 results.
The Company has previously announced that its capital resources, including a bridge loan facility, were expected to fund operations until mid Q3 2026. Based on the Board's review and subject to the timing and outcome of the ongoing strategic initiatives, the Company currently expects that additional financing will be required during July 2026 to maintain operations as a going concern. The Company has therefore initiated discussions with certain major creditors and other stakeholders regarding potential financing solutions.
The Board of Directors and management continue to evaluate all strategic, operational and financial alternatives available to the Company, including potential changes to the Company's legal and corporate structure, with the objective of creating a stronger platform for future value creation.
The Company remains committed to keeping the market informed and will provide further updates as material developments occur.
The information in this stock exchange announcement is considered to be inside information pursuant to the EU Market Abuse Regulation and is published in accordance with section 5-12 the Norwegian Securities Trading Act. This stock exchange announcement was published by Lars Bakklund, Interim CFO at the time and date stated herein.
NEXT Investor Contacts
Ulf Ritsvall Chief Executive Officer ulf.ritsvall@nextbiometrics.com
Lars Bakklund Interim Chief Financial Officer lars.bakklund@nextbiometrics.com