“During the third quarter of the year, we have worked goal-oriented on divesting portfolio companies, reducing indebtedness, and streamlining the business with a focus on AI. During the third quarter of the year, our efforts resulted in a turnaround...
The board of directors of EPTI AB (publ) ("EPTI" or the "Company") decided on 24 April 2023 to adopt a new strategic direction, which means that EPTI will become a pure investment company with a focus on artificial intelligence (AI). Part of the new strategy was to divest the Company's business area EPTI Service and divest other holdings that are not deemed compatible with the new strategy. EPTI has divested the operations in the business area EPTI Service, which has reduced the group's debts by approximately SEK 50 million, which was completed on 30 August 2023 when all shares in Adhype AB ("Adhype") were divested.
After the end of the period, EPTI has reduced the group's debts by approximately SEK 50 million by completing the divestment of the business Talnox Group AB ("Talnox"), with its wholly owned subsidiary Actea Consulting AB. The purpose of the sale was to reduce the group's debt ratio and reduce the group's debts to credit institutions. The purchase price amounted to SEK 15 million on a cash and debt-free basis and the final liquidation amounted to one (1) kroner.
In addition, EPTI has divested all shares in the group company Adhype AB ("Adhype"), the final purchase price was approximately SEK 9.6 million and EPTI assessed that the divestment was beneficial for the Company and enabled further amortization of debts to credit institutions.
EPTI's subsidiary InBanner AB ("InBanner") has an outstanding debt of approximately SEK 5.1 million to one of InBanner's shareholders. The intention is for the debt to be offset against newly issued shares in InBanner.
EPTI announced on September 4, 2023 that the portfolio company Linky AB (publ) ("Linky") completed a financing round of approximately SEK 11 million at a post-money valuation of approximately SEK 46 million. EPTI's holding in Linky amounts to 68 percent of the votes and capital after the financing round, which means that the book value amounts to approximately SEK 31 million according to the valuation principle "Latest transaction".
The company communicates a summary of how the above items have affected the group's balance sheet and thus provide a clear picture of the group's consolidated balance sheet as of the end of June 2023.
The group's balance sheet 2023-06-30 adjusted for the above-mentioned items:
|Amounts are in millions of SEK||Group Interim report Q2 2023||Adjustment according to above entries||Group adjusted balance sheet Q2 2023|
|Short-term claims & bank||59||-32||27|
|Debts to Bank||28||-18||10|
|Furlough Support (COVID)||8||-3||5|
|Total Equity & Debts||239||-46||193|
|Working capital + debts to bank||-55||18||-37|
During the period of July and August, the group reduced its debts by approximately 50 million kronor, and the net working capital, including debts to credit institutions, has been reduced to -37 million kronor, of which 5 million kronor is furlough support (COVID).
"We have previously communicated the importance of the group reducing its operational costs in order to strengthen the working capital in the short term and give the company the conditions needed to become a successful company in AI. The group's debts have decreased by approximately SEK 50 million during July and August. The group's current assets in combination with financial fixed assets exceed the group's liabilities by approximately SEK 60 million and the group's financial risks are now significantly reduced. We now have a lower debt ratio in combination with a low cost base which gives EPTI and the portfolio companies the conditions to focus on operational activities and help the portfolio companies accelerate development," says EPTI AB's CEO Arli Mujkic.
For further information, please contact:
Arli Mujkic, CEO, EPTI AB
E-mail: [email protected]
Phone: +49 176 626 999 64
EPTI is an investment company focusing on artificial intelligence (AI). The company has a deep understanding of the latest AI technologies and actively guides its portfolio companies with implementation and development of AI-based services. The headquarters is located in Stockholm. EPTI's shares are listed on Nasdaq First North Growth Market and admitted to trading on Börse Frankfurt Open Market.
For more information, see EPTI’s website www.epti.com
The Company’s Certified Adviser is Eminova Fondkommission AB | +46 (0)8-684 211 00 | [email protected]