Pomegranate Investment AB (publ) Releases Financial Report for the Third Quarter 2017 and the Period January 1, 2017–September 30, 2017.
NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO ANY U.S. PERSON
Highlights of the reporting period
- Net asset value per share as per end of Q3 2017 amounted to EUR 29.7, an increase of 28% compared with same period in 2016.
- Net result for the quarter was EUR -0.5 million (EUR -0.4 mln).
- Net result for the period was EUR -0.1 million (mln) (January 1, 2016–September 30, 2016: EUR -0.2 mln). Earnings per share were EUR -0.01 (-0.05).
- The net asset value of the Company was EUR 160.5 mln on September 30, 2017, (December 31, 2016: 132.6), corresponding to EUR 29.70 per share, (December 31, 2016: 31.92).
- The Company’s net asset value per share in EUR decreased by 0.2% over the period July 1, 2017– September 30, 2017. The Company’s net asset value per share in EUR decreased by 7% over the period January 1, 2017– September, 2017 following the increased share count after the new share issue in March 2017.
- In Q3 2017 Pomegranate concluded agreements for an investment of EUR 830 thousand into Iran's leading digital audio book platform – Navaar. The investment includes a conversion into equity of the previously issued EUR 131 thousand short term loan facility to Navaar.
- In August 2017, Pomegranate placed another EUR 1.0 million in liquidity management in its PMA with Griffon Capital.
- In August 2017 Pomegranate finalized a call option agreement with the other shareholders in Sheypoor, to reflect Pomegranate’s past and present funding commitment to Sheypoor’s development. The options are immediately exercisable and in-the-money with an estimated exercise value as per September 30, 2017 of EUR 1.1 million.
- Changes in the values of Pomegranate’s investments in the period July 1, 2017 – September 30, 2017 include foreign exchange driven slight downward revision of Sarava’s value, as well as the addition of the Sheypoor options’ value and smaller model driven upward valuation of Sheypoor itself.
- In august 2017, the Company issued a short-term loan facility of EUR 2.0 million to Sheypoor, planned to be subsequently converted into equity in a planned fundraising.
- Cash and cash equivalents amounted to EUR 37.5 million as per September 30, 2017 (December 31, 2016: 29.0) excluding liquidity management investments in Griffon products.
- The number of outstanding shares at the end of the period was 5,404,601.
Events after the end of the reporting period
- In October 2017, Pomegranate transferred all the funds related to the investment in Navaar mentioned above.
- In November 2017, Pomegranate transferred the second tranche of EUR 0.4 million to Carvanro as part of February 2017 funding agreement.
- In November 2017, continued investment in Legal and Sanction compliance resulted in the Company recruiting Mahgol Sharili as in-house General Counsel with a start date in January 2018. Mahgol has to date had a successful career and experience in a variety of legal fields, most recently at Advokatfirman Vinge KB’s Iran desk in Stockholm and at Ronald Fletcher Baker LLP in London in Corporate/Commercial Law but also Dispute resolution. The core team is now complete, which positions the Company very well for 2018 and beyond.
Florian Hellmich, CEO of Pomegranate Investment AB (publ), commented:
With a CAGR of 40% (NAV/Share) since inception we continue confidently to roll out our investment strategy. The Iranian stock market is about to reach an all-time high. Three main geo-economic blocks, China, EU and Russia/CIS are powering ahead to economically (re-)engage with Iran. China-Iran trade has reached USD 27 billion by Q3 this year and is expected to at least 10-fold in the next two decades as part of the One Belt One Road (“OBOR”) program. JCPOA is in tact while Media Headlines are confusing which is keeping competition away, generally speaking, in the internet sector for example. Therefore many of the strategic initiatives we have taken over the last years and at the beginning of this year are starting to bear fruit. As a result, our cash position is strong, and so is the growth throughout our portfolio and the upcoming reporting alignment with Persian calendar position us well for 1397… (2018/2019).
For additional information, please visit the Company’s website at www.pomegranateinvestment.com or contact:
Investor Relations contact:
Gustav Wetterling, CFO
Tel: +46 8 545 015 50
Pomegranate Investment AB (publ) is based in Sweden and was founded in 2014 by a pioneering team with a long and successful track record of investing in high growth companies in emerging markets, particularly in the technology sector. Pomegranate is an investment company that has a strong position primarily in Iran’s consumer technology sector, which, with the easing of international sanctions, represents an extraordinary growth opportunity for European investors. We are entrepreneurs, we have invested in entrepreneurs and a significant proportion of our investors are entrepreneurs themselves.
This press release does not constitute an offer of any securities of Pomegranate Investment. This press release may not be distributed in the United States or to any “U.S. person”, including any U.S. citizen or permanent resident (‘green card holder’) or any entity organised in the United States, whether located inside or outside the United States. Pomegranate shares represent an investment in Iran that is not suitable for U.S. persons.