Business update in connection with COVID-19
The Board of Bioservo today issues the following business update in view of the ongoing and rapidly evolving situation regarding COVID-19. The welfare of the Company's staff and customers is our main priority and we have been taking all appropriate actions to mitigate the impact of COVID-19 in accordance with the recommendations from the authorities. We are also working to protect Bioservo's financial assets and ensure future value for our stakeholders by proactively identifying opportunities for cost savings.
As previously communicated, Bioservo has successfully initiated a large-scale launch of Ironhand together with distributors in the US, France and Germany, with a strong focus on the automotive, aerospace, construction industries and its subcontractors. These priority markets and industries are now completely or partially temporarily shut down, which has an impact on Bioservo's ongoing launch of Ironhand and ongoing validation projects carried out by several of our customers. Should the shutdowns last for a longer period of time, Bioservo's sales will be severely affected.
For this reason, Bioservo has immediately started work to reorganizing the business operations:
- Commercial operations have been switched to digital channels such as video conferencing.
- Alternative suppliers are evaluated to safeguard material supply.
- Short-term work allowance for permanent staff and dismissal of hourly staff in manufacturing and development.
By proactively implementing these measures, Bioservo will have a strong position to resume the launch of Ironhand and the validation projects we have now paused and capitalize on the business opportunities that will emerge once industries and companies have restarted their operations again.
For more information, please contact
Petter Bäckgren, CEO of Bioservo Technologies AB
Phone: +46 (0)8 21 17 10
petter.backgren@bioservo.com
About Bioservo Technologies
Bioservo Technologies AB (publ) is a world leading company in wearable muscle strengthening systems for people in need of extra strength and endurance. All our innovative products and systems are designed to keep people strong, healthy and efficient.
The company has a unique global position within soft exoskeleton technology for the hand, both for industrial applications to improve the health for workers and to improve quality of life for people with reduced muscle strength.
Bioservo Technologies was founded in 2006 in collaboration between researchers at the Royal Institute of Technology and a doctor at Karolinska University Hospital. Bioservo Technologies is a Swedish public limited company with headquarters in Stockholm.
FNCA Sweden AB, +46(0)8 528 00399, info@fnca.se is the Company’s Certified Adviser on Nasdaq First North Growth Market.
For more information, please visit www.bioservo.com