Thinfilm Raises $110 Million as NFC Solutions Traction Increases among Leading Consumer Brands

Proceeds fully fund CAPEX investments and operations; cash break-even expected in Q2 2019

OSLO, Norway, October 20, 2017 — Thinfilm Electronics ASA (“Thinfilm”) (OSE: THIN) (OTCQX:TFECY), a global leader in NFC (near-field communication) mobile marketing and smart product solutions, announced on Thursday that it successfully raised more than $110 million through a private placement with existing shareholders and new high-quality institutional investors. The proceeds fully fund the Company’s CAPEX requirements and operations leading up to an anticipated cash break-even point in early Q2 2019. The capital infusion also strongly positions Thinfilm to realize its vision of making everyday items ‘smart’ while leveraging smartphones to bridge the gap between physical objects and the digital world.

Proceeds from the private placement will be used to fully fund a range of strategic needs, including the purchase and installation of roll-to-roll manufacturing equipment, ongoing back-end development, and expansion of the sales, marketing, and software teams.

Thinfilm’s NFC Solutions empower brands to connect directly with consumers through the simple tap of a smartphone, effectively bypassing intermediary search engines, social platforms, online marketplaces, and group-sourced review sites. Recent case studies demonstrate that, compared to more conventional marketing channels, NFC produces higher engagement levels, generates more web traffic, and enhances consumer purchase conversion.

“The substantial funding secured in this private placement is a testament to both the opportunity that exists in the NFC solutions space and Thinfilm’s ability – as a market leader – to address the increasing demand among consumer brands of all sizes,” said Davor Sutija, CEO of Thinfilm. “With sufficient financing to get us to cash break-even, we are now keenly focused on bringing affordable intelligence to billions of everyday items.”

The capital raise follows several milestone achievements by Thinfilm over the past year related to operations, software, and sales. These accomplishments center on:


  • CNECT™ Platform – Launched in February, the cloud-based software platform fully integrates with NFC tags, enabling brands and digital agencies to connect directly with consumers, deliver targeted content and unique digital experiences through the tap of a smartphone, and manage/analyze campaigns in real time via the CNECT portal. As of mid-October, there were 377 companies registered on the CNECT Platform.


  • New US headquarters – The former Qualcomm-owned facility was secured in October 2016, features a 22,000 sq. ft. state-of-the-art fab, and will house Thinfilm’s new roll-based manufacturing line. A grand-opening event on June 15th was attended by more than 200 guests.


  • Roll-based manufacturing line – A dedicated Thinfilm roll-to-roll team is managing procurement and buildout of the line, which is expected to be operational for EAS (electronic article surveillance) tags by year-end 2017 and for NFC tags by Q3 2018. Once completed, the ultra-high-volume line will have an annual front-end die (NFC & EAS) capacity in the billions of units.


  • Barbadillo NFC field trial & case study – In July, Thinfilm and Barbadillo announced the largest on-bottle deployment of NFC in the wine & spirits industry. The promotional campaign featured 126,000 ‘smart’ wine bottles, integrated with SpeedTap tags and supported by the CNECT Platform. Results showed that Thinfilm’s NFC Solution generated 54% of brand engagement during the multi-channel campaign, produced 10x higher traffic than social media, and drove over 30% consumer purchase conversion.


  • MMA ‘Smarties’ Award – Thinfilm and Coronado Brewing Co. received a 2017 North America Smarties™ Award from the Mobile Marketing Association (MMA) for technology innovations in the ‘Internet of Things – Products in the Market’ category. Thinfilm has also launched other in-market deployments of its NFC Solution with craft beer brewers Oskar Blues and Amplified Ale Works.


  • GSK field trial – This month, Thinfilm announced a field trial with GlaxoSmithKline (GSK). SpeedTap tags were used to create interactive ‘smart’ shelves that helped educate consumers on GSK’s leading over-the-counter product, Flonase®. The trial was rolled out in retail stores across Canada.


  • Thinfilm NFC Scanner App for iPhone – Thinfilm launched its NFC Scanner App for iPhone in September, immediately following Apple’s release of the iOS 11 operating system. Apple’s enhanced NFC support means that, for the first time, all major mobile operating systems support smart product and smart package interactions using NFC tags. Apple’s updated OS extends the iPhone’s NFC capabilities beyond Apple Pay by enabling supported NFC tags to launch mobile-optimized digital experiences with a single tap from iPhone 7 and later models. As a result, Thinfilm customers can now leverage NFC – through the use of conventional tags that fully integrate with the CNECT Platform – to engage directly with iPhone users and generate high-quality traffic from digitized ‘smart’ products.


About Thin Film Electronics ASA

Thinfilm is a global leader in NFC mobile marketing and smart-packaging solutions using printed electronics technology. The Company creates printed tags, labels, and systems that include memory, sensors, displays, and wireless communication — all at a cost-per-function unmatched by conventional electronic technologies.

Thinfilm offers end-to-end mobile marketing solutions that feature hardware, label/packaging integration services, and comprehensive cloud-based management, reporting and analytics. Collectively, these components deliver a powerful 1-to-1 digital marketing platform through which brands of all sizes can connect directly with consumers, all with the simple tap of a smartphone. The resulting disintermediation of search engines, online marketplaces, and social platforms empowers brands to control messaging, enhance consumer dialogue, build loyalty, increase engagement, and drive sales.

Thinfilm’s roadmap integrates technology from a strong and growing ecosystem of partners to bring intelligence to everyday, disposable items. Its mission is to effectively extend the traditional boundaries of the Internet of Things to fuel the Internet of Everything.

Thin Film Electronics ASA is a publicly listed company in Norway with global headquarters in Oslo, Norway; US headquarters in San Jose, California; and offices in Linköping, Sweden; San Francisco; London; and Shanghai. For more information, visit

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act).


For more information on Thinfilm please contact:

Bill Cummings
SVP Corporate Communications
Thin Film Electronics ASA
+1 408 503 7312