Net Trading Group Interim Report Q2 2021
Net Trading Group NTG AB (publ)
Interim report
1 January–30 June 2021
The Board of Directors and the CEO of Net Trading Group NTG AB (publ) hereby submit the interim report for the first half of 2021.
Summary of Group for the May–June 2021 period
- Net sales amounted to kSEK 83 (–)
- Operating loss amounted to kSEK -6,244 (–)
- Diluted earnings per share SEK -0.01 (–)
- Cash and cash equivalents at period end amounted to kSEK 4,694 (–)
Summary of Parent Company for the April–June 2021 period
- Net sales amounted to kSEK 0 (-55)
- Operating loss amounted to kSEK -2,451 (-498)
- Cash and cash equivalents at period end amounted to kSEK 644 (570)
Summary of Parent Company for the January–June 2021 period
- Net sales amounted to kSEK 0 (48)
- Operating loss amounted to kSEK -2,913 (-1,348)
Significant events during the period
NTG
- Election of new board consisting of Reidar Michaelsen (chairman), Steven Royce (board member) and Nicolas Brun-Lie (board member)
- Hired Lars Christsian Beitnes as new CEO
- Raised 7 MSEK in equity in a private placement
Rock Energy
- Signed LOI with Orkufelagid, a Faroe Islands based energy company, on developing geothermal energy in the form of heat and electricity to replace their current reliance on oil
- Signed LOIs and discussions with several onshore fish farmers on the west coast of Norway
- In advanced stages with Nordic energy users for the geothermal Well++ energy solution (4-6,000m depth)
- Discussions with several large real estate developers in the Nordics
- Discussions with several district heating systems and municipalities in the Nordics
- Received European requests for the conversion and recompletion of old oil and gas producing wells for geothermal purposes
Lightcircle
- Signed distribution agreement with ChargeHome Scandinavia AB, for sales of Lightcircle products starting Q3-2021
- Signed distribution agreement with Amazon EU and US for sales of Lightcircle products starting Q3 -2021
- Completed product development for Varsku, the new product that is the world's first alarm socket to prevent and warn of future fires in the socket
- Signed new distribution channel with the new eCommerce concept and platform Swapbox, launched together with Elbilgrossisten for flexible leasing of charging boxes in Norway, as the entry market to build revenues growth from late Q3-2021
Significant events after the end of the period
NTG
- Board of directors called for an extraordinary general meeting to change the name of the Company to GET Group AB
- NTG continues to pursue multiple avenues of finance and has received term sheets for funding of both its business growth and ownership in energy producing asset
Lightcircle
- Entered into a collaboration agreement with Snøhetta, a leading architect and design company, for the development of the standard wall socket of the future based on Lightcircle's smart technology
CEO Lars Christian Beitnes’ comments to the group’s activities during Q2-2021
As CEO of Net Trading Group NTG AB (publ) (‘NTG’) I have been presented with the opportunity to navigate the new waters ahead for a new direction for NTG.
Before my engagement, NTG had a well-known e-commerce platform for the sale of FMCG (Fast Moving Consumer Goods) in the Nordic Market. This platform was based on certain legal, tax and structural aspects which were all changed in 2019. By the end of 2020, NTG had moved to change its direction through a reverse acquisition by Lightcircle AS (‘Lightcircle’). The FMCG business had been exited in a number of moves and the energy market had been entered. In early 2021, discussions were entered into with Rock Energy Group Limited (‘Rock Energy’). This culminated in a further reverse acquisition of NTG by Rock Energy in April 2021.
By April 2021, NTG stood as the holding company of two innovative and unique subsidiaries. Rock Energy is active in the renewable energy sector offering sustainable energy from deep energy wells. Rock Energy’s business model is based on a combination of a) delivering turnkey energy plants to major energy users with future royalty payments, b) selling energy by building, owning and operating their own plants; and c) licensing their ground-breaking technology to third-parties in other parts of the world. Lightcircle is a creator of new technology which increases energy efficiency and safety, and extends into smarthome products. Lightcircle provides it’s algorithm based technology for products that need charging, products that have permanent “on” requirements and the charging of Electric Vehicles, Scooters and Bikes.
In addition to the innovation that each subsidiary has, it brings a synergy to the NTG Group. NTG is now a holding company of an energy group. Rock Energy sources renewable energy from the constantly-available energy in the earth. Lightcircle is the creator and manufacturer of products enabling safer, more efficient use of energy. NTG envisages the next stage being an integrated Group product where the energy is produced by Rock Energy (clean, green, everlasting and sustainable) and that energy is utilised by users through Lightcircle’s safe and efficient use products – maximising economy of both energy use and cost. Rock Energy provides green, sustainable energy used safely, efficiently and sustainably.
To our knowledge, there is no such Group in existence elsewhere.
Not only is this Group innovating the Energy sector but it is doing it with an environmental drive. Sustainable energy used sustainably.
Since my appointment 30 June 2021 the management team have consulted with highly reputable branding professionals in Stockholm and carried out a rebranding process over the summer, where the focus has been on building the future identity of NTG and its group. The board of directors have called for an extraordinary general meeting to change the name of NTG to GET Group AB. GET comes from GEo Thermal energy but stands for our mission to get energy and data to our customers, as well as give them energy in a more abstract sense. Rock Energy is already getting energy from the ground and Lightcircle is already getting data from its sockets. We envisage getting a lot more in the months and years to come.
On an ongoing basis, the ability to source energy where the energy is needed reduces the need for grid infrastructure and infrastructure transmission inefficiencies. This, and the use of the sustainable energy at that location, means that this Group is a powerful disruptor to the market with real efficiencies to be made and costs to be saved. Hence the long-term viability of the Group and the Group’s products and services is assured.
NTG continues to pursue multiple avenues of finance and has received term sheets for funding of both its business growth and ownership in energy producing asset. This will be revised on a continual basis to ensure that NTG is accessing capital in the most efficient manner both for now and for how it is to be strategically placed moving forward. This plan envisages real value creation for shareholders and the ability to pay dividends in the medium term.
NTG has re-positioned itself in the sustainable energy sector with two innovative subsidiaries. NTG sees the opportunity as an essential to the modern world and presently considers itself to be the only Group positioned to take advantage of such a change in direction. Below is an overview of the activities in the two subsidiaries during Q2-2021.
Rock Energy
Rock Energy received a solid number of project requests during Q2-2021 and is currently evaluating a double-digit number of projects.
The market focus for Rock Energy during Q2-2021 remained in the Nordics, the UK and Northern Europe from where there are multiple enquiries. Detailed feasibility assessments are ongoing with commercial energy users such as fish farms, green-houses, airports, district heating systems, industrial sites and property developments located in both remote and urban areas. These sectors are guiding on requiring large amounts of independent base-load heat energy, in addition to some electric power where suitable, and prove to be the primary markets for Rock Energy.
During Q2-2021 Rock Energy has signed multiple LOIs wit energy users and partnered with some of the best service providers in the oil and gas industry.
During Q2-2021 Rock Energy has received requests for the conversion and recompletion of old oil and gas producing wells for geothermal purposes. This opens a completely new business segment, where Rock Energy have first-hand competence and knowledge, allowing Rock Energy to take a leading position in this space.
During Q2-2021 there has been further development of the EPC (Engineering, Procurement and Construction) and IPP (independent Power Producer) business models. Both models provide revenue to Rock Energy through turn-key construction contracts for wells and surface equipment. Long term revenue sources are realised through O&M contracts and dividends from SPVs.
Lightcircle
The first two quarters of 2021 involved four main activities: a) adapting to a new global situation in the electronics components markets, b) establishing new distribution channels, c) finalisation of the new version of the smart socket and fire alarm product Varsku, replacing Kokong in Q3/Q4-2021; and d) the first phase in establishing a new product portfolio in cooperation with the world acknowledged architect firm Snøhetta.
Lack of supply has influenced the Q2-2021 revenue, but more deliveries are promised in Q3-2021 with the promise of further improvements in Q4-2021.
Signed distribution agreement with ChargeHome Scandinavia AB and Amazon EU & US for sales of Lightcircle products starting Q3 -2021. The new eCommerce concept and platform Swapbox has been added as an additional distribution channel through which to build revenue growth from late Q3-2021.
Development is finalized for Varsku and the first deliveries are expected in Q3-2021. The integrated Wifi-model opens new market opportunities through both B2B and B2C markets. Recurring revenue in the form of subscriptions for alerts and software upgrades are currently evaluated to be included in the revenue stream.
The introduction phase of establishing a new product portfolio in cooperation with Snøhetta was concluded. The parties consider that the product portfolio is revolutionary and will change the way rooms can be designed in the future. Lightcircle will continue to investigate details and cost related to production before launching the next phase of the cooperation with Snøhetta.
Lars Christian Beitnes
CEO Net Trading Group NTG AB (publ)
For further information:
E-mail: ir@ntginvestor.se
Net Trading Group NTG AB (publ) (ticker symbol: NTGR) is a holistic Nordic ESG company that owns unique technology related to energy production and energy saving via Rock Energy and Lightcircle, respectively. Our technology enables us to follow the power throughout the circuit – from our power plants to our smart and unique power outlets. By combining the product mix of both Rock Energy and Lightcircle, major developers can now acquire energy in areas where there is no network, reducing concerns about unpredictable energy costs and unstable or congested grids.
Net Trading Group NTG AB (publ), c/o Mcon AB, Södra Larmgatan 4, SE-411 16 Gothenburg
www.lightcircle.io www.rock-energy