Science & Technology
Science and Technology
Science and Technology
Mon, October 26, 2009 High Density Devices AS, Kristiansand, Norway secures new financing:
KRISTIANSAND, NORWAY--(Marketwire - October 26, 2009) -
Experienced entrepreneurs back in action, this time joining forces with a leading Norwegian venture capitalist - High Density Devices AS issues shares and converts debt at a total of 27 MNOK.
High Density Devices AS (HDD) has undergone a process with new external investors securing the Company 24 MNOK in new fresh capital. The investment includes 14 MNOK from Incitia Ventures II AS, 3 MNOK from HDD's Management Team and 7 MNOK from existing owners; of which Tønnevold Venture & Invest AS is one. In addition, a previous debt of 3 MNOK is converted into shares, and the participants in this capitalization of the Company have furthermore secured an option (subscription right / warranties) to raise an additional 10 MNOK in future equity. Following this capitalization, the company is valued at 45 MNOK. Incitia Ventures II AS is now the largest single shareholder, with more than 34 % of HDD's overall shares. Olav Stokke and two of his co-entrepreneurs from NextGenTel have become part of the HDD Management Team.
HDD has developed and patented (US Patent granted) a unique technology for encryption and protection of storage media (e.g. hard drives). The technology is applied for full-disk encryption of laptops, desktops, for external storage media, and the technology is also applied for efficient, simple, and secure protection of USB-based memory sticks.
In the rapidly growing global market for data protection, and with the heightened media awareness of cases of stolen and lost computers storing sensitive data, HDD has positioned itself with solutions for data security, protecting users against such unnecessary concerns.
HDD's encryption technology has been approved by the Norwegian National Security Agency (NSM), NATO, and certified in accordance with international certification schemes (e.g. Common Criteria and FIPS).
A total of over 100 MNOK has been invested around HDD, and the Company has cooperated on verification and certification of its technology with, amongst others, the US Department of Defense, where US authorities granted the cooperative project support of 60 MNOK over a five-year period.
"We are very impressed with the encryption technology HDD has developed over the years, and we, and the Company, are convinced that the timing is right for a more aggressive approach to introducing this type of products to the marketplace", states Partner in Incitia Ventures and the new Chairman of HDD, Erik Sandersen, adding: "The combination of the new and commercially sound Management Team, who has a proven track record from NextGenTel, with the far more market oriented product and growth planning at HDD, add significant force to our positive expectations for this investment".
The HDD product portfolio adapts to a wide spectrum of users' needs, from defense, public authorities, institutions and organizations, corporations, and smaller companies, to individuals who are interested in protecting their data from unauthorized disclosure. The need to protect sensitive data applies to all, whether it is e.g. customer records, sensitive financial data, or employee records, that require protection. In addition to its existing technology and products, HDD has implemented processes to adapt its product line to mass markets, and the Company anticipates facing both large and numerous sales and delivery activities and significantly increased revenues in the years to come.
"Together with my co-entrepreneurs from NextGenTel, now colleagues in the HDD Management Team, I was introduced to HDD about one year ago, and the technology and products immediately got our enthusiasm. We therefore decided to pursue this new and exciting opportunity, where we could take advantage of our experience and competence when implementing large-scale industrialization and commercialization of HDD", states Chief Executive Officer of HDD, Olav Stokke, and adds furthermore: "Incitia Ventures has, during the past six months, performed a thorough due diligence and investment evaluation of HDD. At HDD, we are very pleased with having an investor with the insight and professionalism coming in as an active owner of the company, and are very excited with working with them in the future. Our experience from NextGenTel proves that having competent and active Venture capitalists on the owner side is of great importance in order to succeed. Our expectations this time around are also very high!"
HDD estimates the total global market for encryption to be worth several billion US $ in the years to come, and with the addition of fresh capital to the Company, it is now realistic for HDD Management and employees to compete for parts of this market, both nationally and internationally.
Contacts: Olav Stokke, CEO HDD, cell +47 922 69 515, email: [ ost@hdd.no ] Erik Sandersen, Partner Incitia Ventures, cell +47 934 00 305, email: [ es@incitia.com ].
Facts Incitia Ventures:
Incitia Ventures has invested in Norwegian technology companies since 2001 and focuses widely, across industries. As of today, Incitia manages two funds:
* Selvaag Venture Capital: 13 investments, where 8 have been sold or available for public trade, and where capital invested already has been returned, with profits, to fund-investors.
* Incitia Ventures II: 3 investments so far, and the fund is open to investments. Largest fund investors are Selvaag, KLP and DnB NOR.
Portfolio examples: Algeta, Sense EDM, Falanx, T-VIPS, Easypark, Vensafe and Phonect.
Facts High Density Devices:
High Density Devices AS (HDD) has developed and patented a unique technology for highly creative, efficient, and secure encryption of data on storage media for laptops, desktops, and mobile storage units. The solutions are easily operated, independent of Operating System, do not require maintenance, and require no configuration prior to use. It has been patented in a number of countries, and the technology and product line is trademarked as [hiddn]™ (formerly "SecureD"). The company has also developed its proprietary "Key Management System" enabling larger organizations, or user communities, to administer and manage its own encryption keys.
[hiddn]™ has been developed in multiple form factors; as an encryption module for implementation in other manufacturers' end products, as its own product line, as a component (ASIC) for implementation in other manufacturers' products, and as a licensing solution for implementation in other manufacturers' components and/or designs.
High Density Devices AS is owned by Incitia Ventures II AS, Tønnevold Venture & Invest AS, the Management Team, and a number of other financial and private investors.
The Company has 10 employees, and are currently looking to recruit for strategic positions within sales, marketing, development, and project planning and management.
HDD has its head office in Kristiansand and offices in Oslo and Bergen.
For a more detailed description of the company, its products and technology, investors, or any other information, see the HDD web page [ www.hiddn.no ].
This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Press Release (PDF): [ http://hugin.info/136594/R/1350010/325574.pdf ]
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