Pomegranate InvestmentAB (publ) Releases Financial Report for the first four months of 2018 and the period January 1, 2017–April 30, 2018.

NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO ANY U.S. PERSON 

Highlight of the reporting period

At the Company's AGM on May 15, 2017 the shareholders approved to change Pomegranate's financial year to 1 May – 30 April, to be more synchronised with the reporting of portfolio companies, and as a result the current financial year was extended to sixteen months (January 1,  2017 – April 30, 2018) to enable the transition. The comparisons to the result of financial year January 1, 2017 – April 30, 2018 and the 4-month period January 1, 2018 – April 30, 2018 has been made with the previous financial year results of 2016 full year and first quarter of 2017. 

  • Net result for the period January 1, 2017 – April 30, 2018 was EUR -29.2 million (mln) (January 1, 2016–December 31, 2016: EUR 35.2 mln). Earnings per share were EUR -5.8 (9.8). 

  • Net result for the 4-month period January 1, 2018 – April 30, 2018 was EUR  -25.4 million (Q1 2017: EUR -1.8 mln).

  • The net asset value of the Company was EUR 131.4 mln on April 30, 2018, (March 31, 2017: 158.9), corresponding to EUR 24.3 per share, (March 31, 2017: 29.4). 

  • The Company’s net asset value per share in EUR decreased by 24% over the period January 1, 2017– April 30, 2018. The Company’s net asset value per share in EUR decreased by 16% over the period January 1, 2018– April 30, 2018. Pomegranate has performed a broad risk adjusted valuation update of all recent transaction valuations in portfolio companies.

  • In February 2018, Pomegranate committed to invest EUR 12.7 million in Sarava’s funding round, out of which EUR 8.9 million had already been transferred as per April 30, 2018 and another EUR 3.8 is committed through signed Memorandum of Investment (“MOI”). After the transaction Pomegranate’s stake in Sarava amounts to 15.7% as per April 30, 2018. The MOI signed on February 28, 2018 marked the result of negotiations which had been ongoing from autumn 2017. 

  • In April 2018, Pomegranate together with the founders and other shareholder in Carvanro decided to discontinue the project, due to insufficient traction of the company’s product in the market, relative to the expected future funding need to continue the project. As per April 30, 2018 the Pomegranate has recognised a full write-off of the previous company value of EUR 1.4 million.
  • Cash and cash equivalents amounted to EUR 23.4 million as per April 30, 2018 (December 31, 2016: 29.0). Additionally, the Company had short term investments with Griffon Capital at a value of ca EUR 2.6 million as per April 30, 2018. Which means a total sum of cash and short term investments of EUR 26.0 million.
     
  • The number of outstanding shares at the end of the period was 5,404,601.
     

Events after the end of the reporting period

  • The Company has given notice of exercise of the first tranche of Sheypoor stock options held by Pomegranate as per May 31, 2018. In accordance with the option agreement, the options to be exercised correspond to 3.03% in the capital Sheypoor for the total consideration of EUR 534,688.This exercise provides Sheypoor with some extra immediate funding to continue marketing and other initiatives at a favourable valuation for Pomegranate

Management Comments

Florian Hellmich, CEO of Pomegranate Investment AB (publ), commented:  

“We recognise the challenging environment post the US unilateral withdrawal from the JCPOA and the need to maintain utmost flexibility to deal with a lot of moving parts. As a consequence we have made prudent risk-adjustments to our NAV. We are confident that together with our local partners and portfolio companies we are well equipped to deal with these challenges. Our healthy cash balance is an integral part of allowing us to continue successfully executing our strategy as evident by how a number of our portfolio companies are continuing to thrive– in itself represent important data points of companies that contribute to a resilient economy.“

For additional information, please visit the Company’s website at www.pomegranateinvestment.comor contact:

Investor Relations contact:

Gustav Wetterling, CFO
Tel: +46 8 545 015 50
Email: ir@pomegranateinvestment.com

About Pomegranate 

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.

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