SeaTwirl report for the quarter December – February

Important events during the period (2019-12-01–2020-02-29)

• Gabriel Strängberg, CEO since 2013, leaves the company
• Peter Schou is hired as interim CEO
• SeaTwirl chooses not to go forward with the Letter of Intent with Colruyt Group and Norsea Group and announces a plan to raise new capital via emissions and grants
• AGM held in Gothenburg

Important events after the period (2020-03-01–)

• EGM is held where two new members, Klementina Österberg and Dan Friberg, and one substitute, Knut Claesson, are elected to the board
• Chair Jens Tommerup will be engaged in an operative role in the company’s new advisory group and leaves the board
• Klementina Österberg is elected new chair

Financial development during the period (2019-12-01–2020-02-29)

• Turnover was 0 SEK (0) and the operating result was -1,183,514 SEK (-1,119,186 SEK). The negative result is directly related to development costs, including personnel and general common cost
• Balanced development cost amounted to 17,749,094 SEK at the end of the period (16,920,792 SEK), in addition to patent costs of 1,110,261 SEK (819,679 SEK).
• Cashflow for the period amounted to -2,691,304 SEK (-2,467,610 SEK). Cash amounted to 6,551,649 SEK (5,051,920 SEK) at the end of the period.
• Shareholder’s equity amounted to 14,713, 367 SEK (20,963,429 SEK) at the end of the period, of which the result for the period amounted to -1,184,724 SEK (-1,119,242 SEK). No changes other than the result for the period and transfer to fund for development costs has affected the shareholder’s equity during the third quarter.

Financial development YTD (2019-09-01–2020-02-29)

• The result amounted to -2,554,069 SEK (-2,784,178 SEK)

Comment from the CEO

I want to start by welcoming everyone – shareholders, employees, partners, suppliers and all others to this quarterly report concerning the business of SeaTwirl.

Our main shortterm goals  at SeaTwirl is to develop and install a 1 MW version of our floating offshore and to establish the company at the Global markets.

It is a relative new segment but it isalready a market with customers in great need of solutions like SeaTwirl’s. The work of getting there is going according to plan. We have added to our very dedicated S2 team three new members  who are working hard to scale up and getting S2 in the sea. The corona virus of course affects our days and we are following the government’s recommendations carefully, but the impact on our business is minor. A lot of work can be done from home and we have daily video calls with everyone in the team.

We’re also continuing the strategic work of building our patent portfolio. During the period, we got additional patents in both Europe and the US. That is good news and so is our Brazilian cooperation with Crest Consultants and the grant that we received in that connection. We continue to see a great interest in our technology and in renewable energy in general. In February, we announced that the board had decided to not go through with the letter of intent that we signed with Colruyt Group and Norsea Group in April last year.

The financing of the S2 project up to the installation and the development and execution of a commercialisation strategy will instead be done with a combination of emissions and grants. The formal decision to do raise capital by emissions and grants was made at an EGM on April 8. The assessment is that this financing solution will position SeaTwirl even better to benefit from the great interest in renewable energy and in the company’s technology. The cooperation during last year with Colruyt and Norsea have strengthened our belief in the technology platform and our intention is to keep cooperation going.

At the AGM in February, the question of arranging a technology day, where we explain our technology in greater detail for our shareholders, was made. I can now confirm that we are preparing such a day and that invitations will go out in April for a meeting before summer. Hopefully, the corona virus situation will be over before that in order for us  to arrange such a meeting. If it is not possible we will have to wait until after the summer. If not sooner, I hope to meet as many of you shareholders as possible then.

Read the report (in Swedish) here!