Sivers Semiconductors Rocked by Insider Probe and Short Sellers After 14% Surge on Nasdaq-Bound Capital Raise

Sivers Semiconductors finds itself in an unusual tug-of-war: its shares roared nearly 14% higher to 49.50 SEK on Tuesday after shareholders approved a 125 million Swedish krona capital raise, yet a criminal investigation into potential insider leaks hangs over the stock. The Swedish Economic Crime Authority is examining whether details about the chip developer’s planned Nasdaq listing leaked before an official announcement in April — a finding that could rattle confidence with US regulators just as the company pursues a dual listing in New York.

The extraordinary general meeting on 11 May cleared the way for 8.62 million new shares priced at 14.50 SEK each. Institutional heavyweights including DNB Disruptive Opportunities, Storebrand Sverigefond and Hudson Bay Capital Management snapped up the placement under a rights waiver. The proceeds are earmarked to finance the company’s strategic pivot and, critically, to cover the costs of adapting its books to PCAOB audit standards — a prerequisite for listing on the Nasdaq in New York.

That compliance work is already causing calendar headaches. The annual report for 2024 has been pushed back to 15 May, while the first-quarter interim report will follow on 20 May. The regular annual general meeting has been rescheduled to 15 June, where management is expected to present concrete timelines for the US stock exchange debut. To reassure investors, Sivers has imposed a six-month lock-up on any further share issuance, and executives must hold their existing stakes for 90 days.

Should investors sell immediately? Or is it worth buying Sivers Semiconductors?

Behind the disclosure delays, the company is forging ahead with product development. Early May brought news of a partnership with Tachyon Networks to build a 60-gigahertz transceiver for wireless broadband. The deal underscores a broader shift away from pure engineering services toward higher-margin product sales, which Sivers now expects to account for 65% of revenue. Over the next four years the project pipeline stands at $453 million, driven by AI data centers, satellite communications and defense programs.

For the full year 2024, the company booked revenue of approximately 304 million SEK, a 25% increase year-on-year. The bottom line remained deep in the red at a net loss of 186.5 million SEK. Management has flagged that the PCAOB review may result in minor adjustments to revenue recognition and inventory valuation, but insists there will be no material impact on operational cash flow. The long-term target remains reaching cash-flow breakeven.

Meanwhile, short sellers are circling. Reported short positions total 6.43% of outstanding shares, with Voleon Capital Management alone holding a net short position above half a percent. Adding to the pressure, major shareholder Achilles Capital and its parent DDM Finance are in the midst of a restructuring that involves servicing hundreds of millions in maturing bonds. A forced sale of their Sivers stake could flood the market with stock.

For now, the stock’s 14% pop shows that many investors are betting on the Nasdaq narrative rather than the insider probe. But with the Economic Crime Authority still gathering evidence and a major shareholder under financial strain, the path to New York looks anything but smooth. The upcoming earnings reports on 15 and 20 May will offer the first real test of whether the company’s operational turnaround can keep pace with its Wall Street ambitions.

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Sivers Semiconductors Stock: New Analysis - 13 May

Fresh Sivers Semiconductors information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

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