The leadership of Sivers Semiconductors has acquired shares in the company with a clause preventing them from selling for a year, during a significant stock market decline following a capital increase of 700 million Swedish crowns.
The Swedish manufacturer of photonic and radiofrequency components Sivers Semiconductors is experiencing a turbulent phase in the stock market. The stock has accumulated a decline of over 54% in the last month, weighed down by a capital increase that has diluted shareholders and by uncertainty regarding its expansion into the United States. In this context, the board of directors and the CEO have decided to buy shares with an unusual condition: to hold them for at least twelve months.
Share Purchase with Lock-Up Clause
Directors Bami Bastani, Karin Raj, Helena Svancar, Todd Thomson, and Joakim Nideborn completed the share acquisitions approved by the general meeting in June. The CEO, Vickram Vathulya, also increased his stake. The purchases were executed on July 13 and come with a twelve-month lock-up clause, a gesture that the company justifies as a direct alignment of management interests with those of shareholders during a time of transformation.
The capital increase, a private placement without preferential subscription rights for approximately 700 million Swedish crowns, was closed in early July. The funds are intended to increase the manufacturing capacity of indium phosphide lasers and optical amplifiers, critical components for artificial intelligence data centres and automotive sector LiDAR systems. The market punished the dilution: the stock fell by 10.64% in the following session, down to 3.80 euros, and days later was at 3.75 euros.
Delayed Timeline and Growth Objectives
In addition to the dilution pressure, there has been a change in financial timelines. On July 9, Sivers updated its schedule and postponed the release of its second-quarter results to August 27. The reason is technical: the company is adapting its accounting processes to the standards of the Public Company Accounting Oversight Board in the United States, a prerequisite for the dual listing it plans in the North American country. According to Vathulya, the additional time is necessary to provide the quality and transparency required by that market.
The rest of the schedule is already set: the third quarter will be announced on November 26 and the fourth on February 25, 2027. Management maintains its growth objectives for the 2026 fiscal year, despite the first half being hampered by delays in defence spending and currency effects. The long-term growth rate is projected to be between 25% and 30%, while profitability is not expected until 2028 at the earliest.
Technical Indicators in Oversold Territory
Technical indicators reflect an extreme scenario. The 14-day RSI stands at 36.3, nearing oversold territory, while the annualised volatility over 30 days reaches 152.35%. Despite the collapse, the stock is trading at 3.75 euros, 63.3% below the 52-week high of 10.23 euros reached on June 3. On the opposite side, the year's low—0.27 euros, recorded in March—remains over 1,300 percentage points below the current price.
The combination of a capital increase that dilutes shareholders, the conversion of a 12 million dollar loan into 22.8 million new shares by the creditor Bootstrap Europe, and the subsequent purchase by directors with a twelve-month lock-up creates a dual profile: a company strengthening its balance sheet on the way to the U.S. while its stock seeks a support level. The next key date will be August 27, when the second-quarter numbers will allow for an assessment of whether the internal bet is grounded or merely a symbolic gesture.
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