WISeKey International Holding obtained a $16.4 million secured line of credit facility for acquisition financing with maturity up to 18 months from ExWorks Capital, a U.S. private debt fund specializing in international trade and working capital financing.

Draw-down from the credit facility is subject to closing conditions, including the grant of options to ExWorks exercisable for up to 1,075,000 registered shares at an exercise price corresponding to a volume-weighted average price determined by reference to a period commencing after WISeKey’s announcement of its audited FY2016 annual results and the execution of security agreements over shares of certain of the company’s subsidiaries and certain other assets.

The credit facility can be up-sized/syndicated at the same terms for up to an additional $10 million by way of adding co-lender(s) or selling a participation interest.

Carlos Moreira, chairman and CEO of WISeKey said: “We believe that this credit facility provides us with the flexibility and leverage to finance strategic acquisitions partially with debt in the short-run.”

WISeKey has retained ACXIT Capital Partners and Source Capital as financial advisors for this transaction. Source Capital acted as sole placement agent for this facility.

WISeKey International Holding is a cybersecurity company currently deploying large scale Internet of Things digital identity ecosystems. WISeKey’s Swiss-based Cryptographic Root of Trust (RoT) integrates wearable technology with secure authentication and identification, in both physical and virtual environments, and empowers IoT and wearable devices to become secure transactional devices.

ExWorks Capital, headquartered in the U.S., is an international, import and export finance company that offers financing solutions to businesses utilizing its own capital and by leveraging its delegated authority granted by both the SBA and ExIm Bank.