Company Annoucement NO. 25
Vejle, March 26. 2020
Waturu Holding A/S annual report 2019 and update on the impact of Covid-19
The Board of Directors of Waturu Holding A/S has today approved the annual report for 2019. The annual report has been audited by BDO Revision.
Highlights from the 2019 annual report:
1. Waturu Holding A/S was admitted to trading on Nasdaq First North Growth market in Copenhagen, with first trading day on May 21. 2019.
2. IPO costs as well as costs for setting up production affects the annual result, as expected and a deficit of DKK 6,142m has been realized.
3. Staff costs are reduced relative to our budget and contribute to a lower cost deficit, leaving the company stronger in the current situation.
4. Production was pushed to Q2 2020 and is awaiting stabilization of the impact of Covid-19 development.
5. The subsidiary Watgen Medical A/S, secured a capital increase in December 2019, which in-all will secure DKK 12,195M in working capital towards the planned IPO in the second half of 2020 at a minimum price DKK +250m.
6. The subsidiary AQUATURU A/S was established in 2019 and a collaboration has been entered into with a large Danish land-based aquaculture fish farm. The purpose is to test and sell a new anti-bacterial/anti-algae technology. Capitalization of AQUATURU A/S through an IPO on the marketplace Oslo Børs Merkur market is being considered.
7. Waturu Holding A/S entered into an agreement with an agent company to help find potential OEM businesses interested in using Waturu technology in products such as washing and coffee machines etc.
Despite the current situation in which the markets are influenced by Covid-19, the board of Waturu Holding A/S are pleased with the developments as well as the future business opportunities.
The Board of Directors maintains the announced long-term expectations, as mentioned in the Memorandum under "Financial objective", with an expected turnover of more than DKK 100m in 2023 and with a positive cash flow in 2020.
Waturu Holding A/S announced on December 23, 2019 that the company would postpone production until Q2 2020. The current situation means that we are awaiting launch of large marketing campaigns until the market has normalized.
Chairman of the board Thomas Marschall states:
“The company has skillfully and in a timely manner adjusted the cost level, which now sets the company in a better situation to tackle the Covid-19 challenge. I foresee a subsequent changed community in which Waturu's products will help to improve hand hygiene in schools, institutions and companies. The Covid-19 challenges will change our way of life which will include higher focus on personal hygiene”.
Waturu Holding A/S will therefore proactively use the time to develop new products in a number of areas that, following the Covid-19 uncertainty, will contribute to earnings and add value. These products utilize the core technology of Waturu Holding A/S. The technology can heat or treat fluids as well as kill bacteria, viruses and other biological material.
A new solution is being worked on to ensure clean drinking water in countries where the drinking water supply, is infected with bacteria such as E.coli. In this regard, the Board of Directors are considering an external global sales and marketing campaign to seek interest from the global market.
Furthermore, an anti-virus/bacteria air purifier is being developed which can ensure that the air is not infected in rooms where there are immune compromised patients or where there are many people together, which can potentially infect each other. We will apply for patent protection.
Another product with great potential, where test will be conducted, is a new type of cold pasteurization plant using Waturu technology that can kill bacteria and viruses in milk or juice. Positive results could lead to a new method which is significantly more energy efficient and which can ensure that the expiration date is extended without affecting the taste. Testing has been arranged with an external institute and the solution will be patent protected.
Our decentralized water heater, which is our primary product in Waturu Holding A/S, can secure bacteria-free hot water, produced on the fly - when the user needs hot water. It is the Board of Directors' position that Waturu Holding A/S stands strong with the current partners, which include Saint Gobain as well as FM Mattsson Mora Group. The latter has entered into a LOI regarding commercialization of an anti-bacterial product, targeted hospitals and nursing homes, where users generally have weakened immune systems and are therefore easy susceptible to bacterial infection such as Legionella.
The subsidiary Watgen Medical A/S, of which Waturu Holding A/S owns 70.42%, is a medtech company that develops a range of innovative medical devices that treat, sterilize and hydrogenates water to treat wound care and atopic dermatitis (eczema). Conditions that are affecting hundreds of millions of patients worldwide and representing markets with annual revenue of billions of dollars. The company must be capitalized and the planned IPO is maintained, but the time of listing may be affected by the Covid-19 situation.
Due to the Covid-19 situation, which is expected to put a great deal of pressure on the Danish hospitals and which means that many patient groups need to be treated at home, has made the board of directors of Watgen Medical A/S, consider a strategy for possible pre-medical approval of a wound care product and prepare direct sales towards patients, with a device which can deliver clean bacteria-free tempered water for home treatment.
The product will be CE approved.
The subsidiary Aquaturu A/S, deals with anti-bacterial and anti-algae technology for land-based fish farming. The company has for 6 months conducted tests with a large Danish plant which produces 750,000 kg. fish pr. year. The technology market for onshore freshwater plants is global and the production of fish from breeding is today the largest supplier to the world market.
The company is in the commercialization phase, which requires a capitalization of the company, and which is why management is investigating various options for this, which could lead to a new stock exchange listing (IPO) on the Oslo Stock Exchange Merkur Market.
CEO, Toke Reedtz states:
“2019 was a year of high activity and where we raised capital to commercialize our energy efficient decentralized water heater technology.
Watgen Medical A/S faces the same task in the second half of 2020 when the market is expected to normalized.
AQUATURU A/S has moved forward rapidly. This can be attributed to the industry and the technology and personally I have high expectations for the company's business opportunities. Fish mortality rate has been increasing in recent years in recycling facilities and because we are dealing with companies that care about animal welfare and cost cutting - there is a great match for the Aquaturu technology.
We are utilizing technology that can be used in an number of industries and we will do our best going forward, despite Covid-19, to reward company shareholders. A great number of hours are put into our work and I thank the employees for their efforts.
We will though, not leave significant values, in the form of obvious business opportunities behind and therefore we will continue to innovate, which in the aftermath of Covid-19 could prove to be very beneficial to the shareholders”.
The annual report can be downloaded from our Investor relations website.
About Waturu Holding A/S
Waturu Holding A/S is a Vejle based Greentech company, which develops innovative water technology for heating or treating water, with the focus on ensuring bacteria-free water and reducing water and energy consumption for heating hot domestic water in properties and thus ensuring CO2 savings. Waturu Holding A/S is a major shareholder in the medical company Watgen Medical A/S and in the fish farm technology company Aquaturu A/S.
CEO Toke Reedtz, cell.: +45 5188 1262, e-mail: email@example.com
CFO Michael Nørgaard, cell.: +45 2720 6214, e-mail: firstname.lastname@example.org
Waturu Holding A/S
Tofte & Company ApS
Christian IX Gade 7, 3rd,
Contact: Sasja Dalgaard, e-mail: email@example.com
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