Waturu Holding A/S - status at the end of 2019. Delayed launch, maintaining expectations and new products.
Company Announcement No. 22
Vejle, December 23th. 2019
Launch of Waturu's decentralized water heater is delayed until mid-Q2 2020.
The delay is due to changes to the setup of the semi-automated production as well as delay of sub-deliveries from subcontractors. The delay means that sales in the period will be correspondingly shifted and thus will commence in the second quarter. In order to further strengthen the organization, new production manager will also be added during the first quarter.
Waturu Holding A/S maintains its long-term revenue target for 2023 of plus DKK 100 million and the expectation of being cash flow positive in 2020.
The delay does not materially affect the liquidity requirement in the short or long term.
New products will be launched in parallel in Q2 2020.
Two new products are being launched alongside the decentralized tankless water heater. One is an anti-legionella device whose only function is to kill bacteria in hot water. The product can be used in commercial- or production facilities or at home as well as in special institutions where the importance of bacteria-free water is a priority. Please refer to Company Announcement No. 9 for more information.
In addition, a new product which will compete with the current solutions that can supply boiling water in the kitchen will be launched. The product, which can deliver up to 97 degrees hot water, has limited running water and is tank-free. Thus, energy is used only when boiling water is needed. The unit's properties can also be used for new business areas, which are expected to be announced in 2020.
New prototype of a wound care product - Watgen Medical A/S
By the second quarter, fully functional prototypes of a new wound care product will be delivered to Watgen Medical A/S. The final product can be used in clinics or in patients' homes. It should ensure that chronic wounds are rinsed and cleaned with germ-free tempered water - which is expected to result in fewer infections, that can be of great importance to affected patients.
In company announcement no. 21, it has been announced that Watgen Medical A/S has entered into investment agreements which together provide an injection of DKK 12,195,000. The capital ensures that the company can pursue an IPO strategy as a basis for commercialization and testing of new solutions for wound care for chronic wounds, as well as for the treatment of inflammatory skin diseases.
After the capital injection, Waturu Holding A/S is still the majority shareholder in Watgen Medical A/S.
New anti-algae and bacteria product - Aquaturu A/S
In the first quarter, a new anti-algae and bacterial solution is delivered for land-based fish farming, which is expected to reduce the bacterial and algae level in fish basins. The solution will ensure fish producers, higher revenue through higher fish survival rates and lower costs through savings on drugs, antibiotics and chemicals. Sales of this product are expected to begin in Q2.
Waturu Holding A/S owns 100% of the share capital of Aquaturu A/S.
Follow-up on LOI with a large Nordic faucet manufacturer
As stated in Waturu's company description, an LOI (letter of intent) has been entered into with a large Nordic faucet manufacturer. Due to production delays, the expiry of the agreement has been extended by 6 months to 30th of June 2020, where a definitive agreement is expected to be entered into regarding one or more of Waturu's products.
Follow-up to Company Announcement No. 16
As stated in company announcement No. 16, Waturu Holding A/S is exploring the possibility of moving the company to the main market to gain more visibility, provide a higher standard of transparency to investors, achieve improved liquidity of the share and secure access to more and larger investors, which can support the company's commercial opportunities going forward.
This work is still ongoing at the end of December 2019.
The same company announcement states that Waturu initiates dialogue with institutional investors to provide financing for Waturu's hot water solution to public institutions.
It should be clarified that the stated average contract price is a total approximately cost of changing the hot water infrastructure at a standard sized school to a Waturu based hot water solution.
It is Waturu's wish to be able to offer public institutions a financed solution that can ensure that the ongoing savings in water and energy can pay for the installation costs.
This work is still ongoing at the end of December 2019.
Overall status of Waturu Holding A/S and its subsidiaries Watgen Medical A/S and Aquaturu A/S
It has been a very busy year, which has resulted in a number of strategic decisions for the board and management of Waturu Holding A/S. It is the Board's strategy to pursue business opportunities that are expected to bring value to the investors in Waturu Holding A/S in the short and longer term.
In 2019, this has meant, among other things, that Watgen Medical A/S was capitalized and that the management and board of the company has been expanded with a new competent CEO and a new international board member from the USA with strong competencies in the commercialization of medtech products.
Aquaturu A/S was founded in 2019 and tests are being carried out with a new type of anti-algae and bacteria solution for aquaculture as well as land-based fish farming facilities where the water is stagnant or recirculated.
A new director has been hired per January 1th 2020 and the Board of Directors is strengthened with an experienced independent fish master from a Danish fish farm with an annual output of 750,000 kg of freshwater fish.
It should be noted that commercialization of new business areas requires capital, which is why it has been the Board's decision, at present, that external investors should provide the necessary capital. This is because Waturu Holding A/S is not capitalized to be able to provide the subsidiaries with the necessary capital for commercialization. Pr. December 23th, 2019 capital was added to the subsidiary Watgen Medical A/S. Many investors wanted to participate in the capitalization. The selected investors were selected based on a holistic approach that could secure the company the required capital, ensure the greatest value to the investors in Waturu Holding A/S and which was administratively possible for the management.
Thank you to all investors, employees and partners.
Merry Christmas and Happy New Year
CEO, Toke Reedtz
More information:
CEO Toke Reedtz, tel .: , e-mail:
CFO Michael Nørgaard, tel: , e-mail:
Waturu Holding A/S
Sjællandsgade 32
7100 Vejle
Denmark
Certified Adviser
Västra Hammen Corporate Finance AB
Per Lönn
Tel
Jungmansgatan 12
211 11 Malmö
Sweden
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