Axolot Solutions Holding AB (publ) - Year end report January-December 2020

Oversubscribed Preferential rights issue creates good conditions for continued implementation of Axolot’s strategy, with focus on sales and delivery

Summary of the fourth quarter 2020

Financially

• Net sales amounted to 1 318 tsek (882 tsek for the corresponding quarter in 2019), including both the first commercial sales of an AxoPur®-system and trial runs.
• Other revenues were 286 tsek (83). This is the last part of a subsidy from regional authority NTM to a farming project in Finland. 
• Earnings before interest and tax became -3 953 tsek (-7 216), where the result improvement is explained by higher sales and effects from Axolot’s Covid-19 related restructuring measures on the cost side. 
• Earnings per share amounted to -0,15 sek (-0,27).
• A Board decision to make a Preferential rights issue was taken on November 9 and approved by an Extra General Meeting on November 26. The subscription period ended on December 22 and Axolot announced the final outcome on December 29. The Preferential rights issue was subscribed to 138% which means that the company will have a cash inflow of 25.2 msek, before costs for the rights issue. 
• Liquid funds were 23 472 tsek at the end of December 2020, and the impact from the rights issue before year end was 19 938 tsek. The remaining effect on the cash flow from the rights issue will come during the first quarter 2021.

Operationally

• The delivery of Axolot’s first AxoPur® wastewater purification unit, to Colombier Barrier Coatings in Finland, was effectuated during the fourth quarter 2020. 
• Five trial agreements were signed during quarter four, within different industry segments; pulp/paper, food, metalworking, biogas and recycling. 
• The European Intellectual Property Office approved an Axolot patent for an innovation related to the company’s purification technology.

January - December 2020

• Net sales for the full year 2020 were 3 683 tsek (2 143 for the full year 2019). 
• Other revenues were 740 tsek (193), which mainly refers to additional subsidies from Finnish agricultural authority NTM, for a water purification project that was initiated in 2019.
• Results before interest and tax for the full year 2020 were -19 855 tsek (-25 995).
• The Board proposes no dividend for the year 2020.

Key events during the fourth quarter 2020

• A Board decision to make a Preferential rights issue was taken on November 9, and approved by an Extra General Meeting on November 26. The subscription period ended on December 22 and the final outcome was a subscription level of 138%. The Preferential rights issue was guaranteed at 79.4% and one half of the fees to the guarantees was in shares. For this purpose, the Extra General Meeting also approved the Board decision of a Directed issue of shares. There will be a cash inflow of 25.2 msek from the Preferential rights issue, before issuing costs. The number of shares will increase from 26 503 948 to 53 797 369, as an effect of the Preferential and the Directed issue of shares altogether.

Key events after year end 2020

There were no key events after the end of the year 2020.

For further information, please contact:
Martin Ragnar, President and CEO Axolot Solutions, tel: +46 70 817 11 16, mail: martin.ragnar@axolotsolutions.com

Anita Haak, CFO Axolot Solutions, tel: +46 70 817 11 12, mail: anita.haak@axolotsolutions.com

This information is information that Axolot Solutions Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08:00 CET on February 12, 2021.

About Axolot Solutions

Axolot Solutions is a Swedish environmental technology company, providing systems for industrial water purification. The company offers a holistic solution based upon a proprietary technology within electro-coagulation and flotation. Axolot's water purification concept is cost efficient and enables recirculation of the water. This leads to a reduced environmental footprint. Axolot Solutions also has business activities in Finland, through its affiliated company Axolot Solutions Finland Oy. More information about the Company and its business activities can be found at www.axolotsolutions.com.

Axolot Solutions Holding AB is based in Helsingborg, Sweden, and its shares (ticker: Axolot) are listed at Nasdaq First North Growth Market, Stockholm, since November 21, 2018. FNCA Sweden AB is the Certified Adviser of Axolot Solutions. FNCA Sweden AB can be reached at info@fnca.se and on tel +46 8 528 003 99.