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Interim report 1st January – 30th September 2020

TerraNet AB
·5-min read

Third quarter 1st July – 30th September 2020

  • Revenue amounted to SEK 0 thousand (604)

  • Operating profit amounted to SEK -6,681 thousand (-7,873)

  • Net profit/loss for the period amounted to SEK -7,342 thousand (-9,790)

  • Cash flow from operating activities amounted to SEK -5,216 thousand (-8,460)

  • Cash and cash equivalents amounted to SEK 20,717 thousand (11,569)

  • Diluted and undiluted earnings per share amounted to SEK -0.05 (-0.40)

Interim period 1st January – 30th September 2020

  • Revenue amounted to SEK 715 thousand (824)

  • Operating profit/loss amounted to SEK -22,236 thousand (-28,503)

  • Net profit/loss for the period amounted to SEK -25,358 thousand (-31,823)

  • Cash flow from operating activities amounted to SEK -23,382 thousand (-23,836)

  • Diluted and undiluted earnings per share amounted to SEK -0.23 (-1.31)

  • The preferential rights issue and offset issues were registered in July. The preferential rights issue raised MSEK 35.1 in liquid assets for the company after issue costs

Comments from the CEO

The third quarter was marked by some momentous events in the company’s history. Terranet took an important step in its development with its image analysis sensor VoxelFlow, a technological advance that offers an increase in performance from 200 to 200,000 voxels per second. VoxelFlow will be presented at the upcoming Daimler-Mercedes Benz Startup Autobahn Expo in 2021.

Despite uncertainties regarding the long-term impact of the coronavirus pandemic, Terranet was able to sign a memorandum of understanding (MoU) with Daimler in early October. This MoU reaffirms the collaboration that has already been initiated and addresses future plans and ambitions to collaborate with Daimler in the product development and market launch phases once the first prototype has been tested and verified.

Due to the success of the new share issue the company carried out during Q2, the company was able to significantly strengthen its ownership base by bringing in new long-term owners who have expressed their confidence in Terranet. As a result of this ownership change and a clear path forward for the company, there has also been a restructuring of the board, with Göran Janson stepping in as the new chairman of the board at an EGM that was convened in early September.

Another important milestone in the company’s path forward is the recently issued warrant series, which in October raised a total of approximately MSEK 34 for the company. The capital injection, which will be used to finance investments directed towards the expansion of the company’s operations, also marks a turning point for the company since the restart at the end of 2018.

In closing, I am very happy to announce that Johan Wångblad will join the company as our new CFO on December 1. Johan has vast experience from Volvo Cars, most recently as Head of Operations of Volvo Cars Technology Fund, and will be able to contribute to Terranet’s continued development with his solid knowledge of the automotive industry.

Pär-Olof Johannesson, CEO

Significant events during the period

TerraNet announced on 1 July that, in accordance with established guarantee agreements and what has previously been communicated by the company, it will carry out a directed new issue of B shares to the guarantors in the preferential rights issue who have chosen to receive guarantee compensation as newly issued B shares in the company. The subscription price in the commitment fee issue is SEK 0.40 per B share, which corresponds to the subscription price per B-share in the preferential rights issue.

On 31 July, TerraNet called an Extraordinary General Meeting at the request of shareholders who represented approximately 19 percent of the total number of shares and votes in the company. Proposers moved to nominate Göran Janson as a new board member and chair of the board and that Anders Rantén and Claes Lachmann resign as board members. Proposers also moved that the EGM establish a resolution on the adoption of principles for a nomination committee.

The EGM, which was convened on 4 September, moved to elect Göran Janson and Christian Rasmusson as new board members. The EGM also elected Göran Janson as the new chairman of the board. Anders Rantén and Claes Lachmann resigned as board members. The EGM also issued a resolution to adopt the principles for the appointment of an election panel in accordance with the proposal in the meeting notice.

Significant events after the close of the period

On 12 October, it was announced that the exercise price for the warrants of series (TO1 B), with a subscription period 12-23 October, had been set at SEK 0.72.

On 20 October, Terranet announced that it had signed a memorandum of understanding (MoU) with Daimler to continue its cooperation in the development of Voxelflow. The next step in the cooperation is a demo planned for the Startup Autobahn Expo (the growth incubator and accelerator co-financed by Daimler, Porsche and Bosch) in February 2021.

The outcome of the exercise of warrants of series TO1 B was presented on 28 October. In total, 47,503,386 warrants, corresponding to approximately 94 percent of the outstanding warrants, were exercised for the subscription of 47,503,386 B shares at a subscription price of SEK 0.72 per share. Through the exercise of warrants of series TO1 B, Terranet will raise approximately MSEK 34.2 before issue costs.

On November 12, it was announced that Johan Wångblad will be the new CFO of Terranet. Johan has vast experience from Volvo Cars, most recently as Head of Operations at Volvo Cars Technology Fund, and will start his assignment on December 1.

For more information please contact:

Pär-Olof Johannesson, CEO
parolof.johannesson@terranet.se
+46 70 332 32 62

Mattias Larsson, CFO
mattias.larsson@terranet.se
+46 72 709 56 01

About TerraNet:

TerraNet develops software for radio-based solutions and three-dimensional image analysis for advanced driver-assistance systems and autonomous vehicles (ADAS and AV). TerraNet is headquartered in Lund (Sweden) with development sites in Kyiv (Ukraine), Stuttgart (Germany) and Los Gatos, California. TerraNet Holding AB (publ) is listed on the Nasdaq First North Premier Growth Market (Nasdaq: TERRNT-B.ST).

https://terranet.se/en/

This information is such that TerraNet Holding AB is required to make public in accordance with the EU's Market Abuse Regulation (MAR). The information was made public by the Company's contact person above on November 13, 2020 at 8:30 am CET.

Certified Adviser: Mangold Fondkommission AB, 08-503 015 50, ca@mangold.se.

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