Neonode Inc. announced Wednesday that it has entered into definitive agreements with institutional and accredited investors, including insiders of the company, for the private placement of $13.9 million of Neonode’s common stock and convertible preferred stock (the “Private Placement”).

Neonode provides advanced optical sensing solutions for touch, gesture control and remote sensing. You’ll eventually see them in AV with touchless everything. But, the company is also rumored to be working on a UCC system (with one major vendor) that’s 100% gesture-based!

According to the terms of the Private Placement, Neonode has agreed to sell an aggregate total of 1,611,845 shares of common stock (the “Common Shares”) for $6.50 per Common Share, and 3,415 shares of convertible preferred stock (the “Convertible Preferred Shares”) with a conversion price of $6.50 per share and a stated value of $1,000 per Convertible Preferred Share.

Ulf Rosberg and Peter Lindell, directors of Neonode (the “Directors”), and Neonode CEO Urban Forssell have agreed to purchase an aggregate of $3.05 million of the Convertible Preferred Shares in the Private Placement.

Also, Neonode will issue 1,033 shares of Convertible Preferred Shares to the Directors to repay $1 million of outstanding indebtedness owed to the Directors under loan agreements dated June 17, 2020.