Inzile AB (publ) Interim Report January 1 - September 30, 2021

Report this content

Third quarter 2021 in brief

• Revised agreement entered into regarding acquisition of 80% of QEV Tech Holdings

• Acquisition of 80% of QEV Tech Holdings decided at Extraordinary General Meeting

• Size of organization adapted to prevailing sales situation

• Johan Svärd resigned as Chairman of the Board - replaced by Ragnar Åhgren

• Four board members resigned - three new board members elected

• Daniel Wedberg resigned as CEO - Klas Åhgren took over as acting CEO

Third quarter 2021 in numbers

• Net sales amounted to MSEK 0.92 (0.04)

• Operating profit (EBIT) amounted to MSEK -35.0 (-11.3)

• Result for the period amounted to MSEK -35.0 (-11.5)

• Earnings per share before and after dilution amounted to SEK -1.76 (-0.77)

First nine months 2021 in numbers

• Net sales amounted to MSEK 5.7 (2.1)

• Operating profit (EBIT) amounted to MSEK -82.5 (-32.5)

• Result for the period amounted to MSEK -82.7 (-32.7)

• Earnings per share before and after dilution amounted to SEK -4.21 (-2.42)

Events during the period

The main owner and board member of Inzile, Ragnar Åhgren, was elected Chairman of the Board. Until May 31, 2021, he was CEO of Inzile. Ragnar Åhgren thus succeeded Johan Svärd, who left Inzile's board.

Following intensive negotiations between Inzile and Spanish eFashion Championship, a revised solution was reached in early August regarding the M&A deal presented at the end of June. A conditional agreement was hereby signed, which gave Inzile 80% of the shares in QEV Tech Holdings, which in turn owns 19.64% of QEV Technologies. The agreement was subject to a decision at an Extraordinary General Meeting in Inzile and that Nasdaq approved the transaction.

Inzile made an adjustment of the size of the organization. The Board and management made the assessment that a reduction in costs was necessary to make Inzile a profitable and successful growth company. The organization's size was therefore adapted to the current revenue level and included both the company's management and other staff.

Four members of the Board of Directors of Inzile - Anders Aspegren, Vivianne Holm, Meg Tivéus and Thomas Tscherning resigned at their own request.

Inzile's CEO Daniel Wedberg announced his resignation, but remained in office until an acting CEO could be appointed by the Board.

An Extraordinary General Meeting of Inzile resolved to approve the acquisition of 80% of the shares in QEV Tech Holdings and to authorize the Board to decide on a new issue of a maximum of 33,759,717 shares. The right to subscribe for shares would, with deviation from the shareholders' preferential rights, only accrue to eFashion Championship. Payment for subscribed shares would be made in kind or through set-off.

The Extraordinary General Meeting further resolved, in accordance with the proposal of the former main owner and Chairman of the Board Ragnar Åhgren, to elect Håkan Örtenholm, Måns Sjöstedt and Leif Lindqvist as Board Members for the period until the Annual General Meeting of 2022.

The Board of Directors Inzile appointed Klas Åhgren as Acting CEO with immediate effect. During the period 2018-2021, he was commercially responsible for Inzile and is one of the larger shareholders of the company.

Events after the period

In accordance with a unanimous approval from the Extraordinary General Meeting, Inzile acquired 80% of the shares in QEV Tech Holdings. The purchase price was approximately SEK 494 million and the access took place immediately. In connection with the acquisition, the Board of Directors, in accordance with the unanimous authorization of the said Extraordinary General Meeting, decided on a directed new issue to eFashion Championship ("eFC") by offsetting eFC's entire claim against Inzile attributable to the transfer of shares in QEV Tech Holdings. The subscription price was SEK 14.62 per share. This means that since the registration of the share issue, eFC owns 63% of Inzile's outstanding shares.

Inzile received an order, worth SEK 22 million, from the Spanish Pinero Group regarding the development and delivery of battery systems for their existing vehicle fleet within hotel & resort. The order will be delivered during Q4 2021 and Q1 2022 to Pinero's facilities in the Caribbean.

For further information, please contact:

Klas Åhgren, Acting CEO Inzile, klas.ahgren@inzile.com, +46 70 985 58 02

Peter Wergens, CFO Inzile, peter.wergens@inzile.com, +46 73 325 75 04

This information is such that Inzile AB (publ) is obliged to publish in accordance with the EU Market Abuse Regulation (MAR). The information was provided by the above contact persons, for publication on November 18, 2021 at 08.00 CET.

About Inzile

Inzile is a Swedish tech company manufacturing intelligent electrically powered vehicles as well as creating modern transport and service solutions for a sustainable community. The company’s vision is to liberate the world from emission of fossil fuels and to accelerate the climate efforts by contributing to sustainable cities that improve quality of life.

Inzile was founded in 2012 based on a strong will to secure a future climate friendly utility vehicle sector. The team consists of some of Scandinavia’s foremost authorities related to electrical vehicles, digitalization, manufacturing and purchasing. Inzile develops, produces, and sells innovative vehicle solutions on the global market based on the demanding Nordic climate, security requirements and environmental standards. The company is based in Sweden with headquarters and production facility located in Västervik, R&D in Tranås and marketing office in Stockholm.

The company's share is traded on Nasdaq First North Growth Market Stockholm.

Redeye AB is the Company’s Certified Adviser, +46 8 121 57 690, certifiedadviser@redeye.se.

For further information, please visit: www.inzile.com