RESQUNIT AB (PUBL) Announces Bankruptcy Filing for Subsidiary RESQUNIT AS, Operations Continue in the parent company
Stockholm, August 30, 2024, 12:18 CET — RESQUNIT AB (PUBL) (the Company) (Nasdaq First North: RESQ) announces that the board of its wholly-owned subsidiary, RESQUNIT AS (the Subsidiary), has decided to file for bankruptcy with the Sør-Rogaland District Court in Norway. This decision follows a prolonged period of financial difficulty for the Subsidiary, driven by challenges in market adoption and adverse economic conditions.
Background on the Subsidiary and reason for bankruptcy
Resqunit AS, founded in 2017, focused on developing and marketing innovative solutions for the fishing industry, particularly in the retrieval of lost fishing gear. Despite initial strong interest from both the industry and environmental authorities, the Subsidiary struggled to achieve the necessary sales volume to sustain operations. Contributing factors included inflationary pressures, particularly increased fuel costs, which reduced customers' willingness to invest in environmentally friendly solutions.
Over the years, the Subsidiary has been primarily financed by the Company, its parent company, which raised capital and provided financial support to the Subsidiary. However, despite several restructuring efforts and additional capital injections, the Subsidiary was unable to meet its financial obligations, leading to the decision by the Board of Directors to file for bankruptcy.
Continued Operations of RESQUNIT AB (PUBL)
The elimination of the subsidiary's debt from the group’s balance sheet of 13,4 MNOK at the time of filing and the subsequent increase in equity per share, represents a positive financial shift for the Company. Additionally, the significant reduction in operating costs and the cash contributions already received and to be received from Bio Vitos Norge AS (Bio Vitos) further strengthen the Company’s financial stability. These developments collectively enhance the Company’s capacity to concentrate on growth initiatives and deliver greater value to its shareholders.
Following the bankruptcy of the Subsidiary, RESQUNIT AB (PUBL) is now determined to deepen its focus on its planned future expanded operations and strategic initiatives. The Company’s direction and ongoing business ventures remain unaffected by the bankruptcy of the Subsidiary. The Company intends to apply for continued listing on Nasdaq First North, based the planned acquisition of assets from Bio Vitos, including its investment operation.
In alignment with its previously communicated strategic objectives, RESQUNIT AB (PUBL) plans to release further information shortly, detailing the Company’s vision and strategy for the future. The Company is committed to acquiring and managing equity positions in health and life sciences companies across key financial markets in Europe, including Nasdaq Sweden and the London Stock Exchange.
RESQUNIT AB (PUBL) remains dedicated to identifying innovative companies with strong growth potential and exceptional teams that can add value across its portfolio. The Company is optimistic about its future prospects and will continue to focus on delivering value to its shareholders and stakeholders.
DISCLOSURE REGULATION
This information is information that Resqunit AB is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information in this press release has been published through the agency of the contact persons set out above, on August 30, 2024, at 12.18 CET
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Svensk Kapitalmarknadsgranskning AB (SKMG)
For more information, please contact:
Helge Trettø Olsen, CEO, Resqunit AB
Email: helge@resqunit.com
Telefon: +47 901 68 908
About Resqunit AB
RESQUNIT AB is a holding company, having financed its subsidiary by raising capital and providing financial support for it's operations developing innovative equipment for the fishing industry. The subsidiary is working to reduce marine plastic pollution and ghost fishing, problems that critically affects all fishing nations. Since earlier 2024 RESQUNIT AB expanded its scope into new venues of investing into the health and life science sector, for increased value creation, with already several acquisition contracts pending approval and execution.