Torbjörn Sandberg who starts 28 May 2018 has been CEO for, among others, Sensys Gatso Group AB (publ), Birdstep Technology ASA (publ), Netadmin Systems, and ServiceFactory.
“Tobjörn Sandberg has achieved significant results in companies through both growth and restructuring. Torbjörn Sandberg has expertise in organizational development, business processes, sales strategy and capital markets. We welcome Torbjörn Sandberg and his leadership, which will secure the next phase in Impact Coatings’ development,” said Mark Shay, Chairman of the Board.
The target is to recruit a permanent CEO during this calendar year.
“I am pleased to join Impact Coatings during this important phase in the company’s journey from technology innovator to industrial supplier of world-class coating solutions for fuel cells, reflectors, radar emblems, and consumer products,” said Torbjörn Sandberg, continuing:
“The company has a strong team in Linköping, Japan and China. We can quickly establish sales and customer service continuity, as well as tune the organization to achieve the company’s significant potential.”
Impact Coatings founder and CEO Henrik Ljungcrantz is leaving the company on 27 May 2018 in accordance with his employment agreement. The agreed notice period and severance pay duration amount to 12 months.
“Dr. Ljungcrantz has pioneered PVD coating technology whose process and end-products contribute to a cleaner and more sustainable environment. For example, Ceramic MAXPHASE coating for metal bipolar plates in fuel cells has the potential to be a must-have component for industrial-scale fuel cell stack production. The board therefore wishes to thank Dr. Ljungcrantz for his unique and lasting contributions to Impact Coatings,” said Mark Shay.
“Our coating solutions are highly regarded across multiple industry segments. They are under evaluation or already in production at some of the world’s leading automotive suppliers, auto OEM’s, and consumer products companies,” said Mark Shay.
For more information, contact:
Mark H. Shay, CFAChairman of the BoardTel: +46 765 96 62 38 or e-mail: mark@accendofund.com
Impact Coatings AB (publ) is required to disclose this information in accordance with EU market abuse regulations. The information was delivered, via the contact person named above, for publication on 27 May 2018, 9:00 p.m. CET.
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The AGM decided, among other items:
To approve the 2017 income statement and balance sheet as proposed by the board of directors.
To allocate the annual result according to the board of directors’ proposal, meaning that unrestricted shareholders’ equity of SEK 80 152 310.18 is carried forward.
Release from liability the board of directors and CEO.
A board of directors was elected comprising Mark Shay (Chairman), Jan-Eric Sundgren, Chrisian Sahlén, Lars-Gunnar Skötte and Tanja Vainio.
The nominating committee’s proposal of a new procedure for constituting the next nominating committee was approved.
Decision on new phrasing in the articles of incorporation § 8 where time of day regarding registration date is removed.
Decision on new phrasing in the articles of incorporation § 9, Annual general meeting as well as other shareholder meetings can in addition to Linköping be held in Stockholm.
Grant the board of directors authority to decide on the repurchase and transfer of company shares.
Grant the board of directors authority to decide on issuance of equity and/or options and/or convertible instruments.
Grant the board of directors authority to make minor adjustments regarding decisions of the AGM in conjunction with registration at the Swedish corporate registry (Bolagsverket) and Euroclear Sweden AB.
For more information, please contact:Henrik Ljungcrantz, CEOTel. +46-706-63 55 80, or e-mail henrik.ljungcrantz@impactcoatings.se.
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· Coating production to Michelin’s fuel cell manufacturing · Delayed delivery to Huaqing Power Technology (China)
FINANCIAL RESULTS FIRST QUARTER 2018
· Net sales amounted to SEK 7 141 thousand (18 451) · Operating profit amounted to SEK -6 102 thousand (-404) · Net income after financial items amounted to SEK -6 121 thousand (-406) · Cash flow amounted to SEK -3 766 thousand (-12 159) · Equity-to-assets ratio amounted to 88,9% (69,3)
CEO’S COMMENTARY
During the period, we have continued working on our intensified efforts primarily in the Chinese fuel cells market, but also in greater Asia, Europe and North America.
We see a continued strong interest in our offering and we receive increasing evidence that we have the best fuel cell coating on the market. This is based on verifications we receive from auto manufacturers that test our coatings.
Important European order Interest is greatest in the Chinese market and it is there things are moving quickest. We see, however, an increased interest even in the European market, highlighted by the order from Michelin regarding production of Ceramic MAXPHASE™-coatings on fuel cell plates for their fuel cell manufacturing. The Michelin order is small but important, giving us tailwinds in discussions with other players in Europe as well as Asia.
We also see a high interest from the European auto industry for our coating systems for vehicle reflectors.
Long lead times It takes time, however, for discussions and verifications to become concrete business deals. International auto manufacturers have lead times of five to seven years from the start of a new model development program to the start of production. In the Chinese market the time is shorter, but it involves in any case a couple of years.
The market suffers at times from long lead times to produce newly constructed metal plates for fuel cells, i.e., the plates that we coat. It can take four to twelve months from drawing board to delivery. Several producers of metal plates are addressing this problem and are working to reduce the lead times.
With respect to China, it has been relatively calm during the beginning of the year. It is normally difficult to close deals in China during the start of the year. The Chinese New Year falls in the middle of our first quarter, and causes a calm period both before and after.
Due to the above factors, we have not been able to report any larger order during the quarter. As we reported in January, we have even received certain delays to the delivery of coating systems to the Chinese fuel cell manufacturer Huaqing Power Technology.
Clearer business approach During the start of the year, we have worked on creating a clearer business approach with respect to our customers, to avoid negative surprises in new markets.
The approach entails that orders are not considered valid until pre-payment has been made, a Letter of Credit is issued, or the payment in some other way has been secured. Orders shall include only those coating systems meant for delivery near-term and for which customers have verified payment through pre-payment or where the payment is otherwise secured.
Demo center and sales initiatives During the period, we have begun our initiatives on marketing and sales, including development of a demo center.
The planned work toward creating a representative demo center in Linköping has begun. We are building two machines, one to demonstrate coating of fuel cell plates and one for vehicle reflectors. The machines can also be delivered to customers in the event a fast turnaround is needed.
We have during the period strengthened the marketability of our offering and begun recruiting personnel to strengthen our sales capability. We have even streamlined our branding strategy and henceforth will market all of our coating machines under the product family name INLINECOATER™ and our coating processes under the product family name MAXPHASE™.
Our partner and distributor Optorun is intensifying its work to achieve the goals of our agreement. The Japanese company has during the quarter initiated a recruiting process to further strengthen the sales team and thereby increase sales of our coating systems.
With these actions and activities in place, we see a bright future ahead.
Linköping 2018-04-20Henrik Ljungcrantz, CEO Impact Coatings
Net sales during the period amounted to SEK 7 141 thousand (18 451). Operating expenses amounted to SEK -13 243 thousand (18 855). Operating profit before depreciation and other operating expenses amounted to SEK -6 102 thousand (-404). Operating profit before tax amounted to SEK -6 121 thousand (-406). Cash flow amounted to SEK -3 766 thousand (-12 159).
As in previous years’ reporting, no provision for deferred tax assets has been made.
Financial position and liquidityLiquid assets amounted to SEK 61 620 thousand (9 988) at the end of the period. Work in progress not yet invoiced (accrued revenue) amounted to SEK 12 983 thousand (10 280) at the end of the period. Corresponding invoiced, not completed revenue (deferred revenue) amounted to SEK 9 778 thousand (1 842).
Equity-to-assets ratio amounted to 88,9% (69,3).
Cash flow from operations during the period amounted to SEK -3 696 thousand (-12 159).
Cash flow from financing amounted to SEK -70 thousand (0). Total cash flow for the period was SEK -3 766 thousand (-12 159).
SALES AND MARKET
In conjunction with the fuel cell conference FC Expo held in Tokyo in February, we launched INLINECOATER™FC for the Asian market. The coating system is significantly improved in terms of productivity and is optimized for coating fuel cell plates in volume production. The launch will continue during the Hannover Messe to be held 23-27 April 2018.
The cooperation with Optorun continues with work ongoing for existing as well as new potential customers. With support from Impact Coatings in Sweden, customer offerings are being shaped that meet market demands of advanced coating systems.
During the recent quarter, Optorun has started the recruiting process to further strengthen the sales team in order to intensify sales of Impact Coatings coating systems, and achieve the agreed goals in the cooperation agreement. Optorun has recently completed a successful IPO and is now listed on the Japanese stock exchange.
Below we describe the status in the market segments where Impact Coatings is primarily focusing: Fuel Cells and Reflectors. The company also is working actively in Metallization/Decorative coatings and Electrical contacts.
As a step toward focusing the marketing of coating systems and coatings, partly new product names were launched during the quarter. All of the company’s coating systems now fall under the product family name INLINECOATER™.
Fuel cellsHuaqing Power Technology has had to delay their start of production. As announced earlier via press release, this implies the delivery of the agreed coating system is pushed forward.
China Hydrogen Energy, to which our deliveries have been delayed, is in negotiations with a larger player that is planning to take a majority ownership stake in the company. These negotiations are ongoing, and when they are complete a new timeplan for production and delivery of Impact Coatings coating systems will be agreed.
Telos Auto, with which Impact Coatings has a cooperation agreement, is planning to migrate to metal fuel cell plates. Impact Coatings is now coating plates from Telos Auto on a testing basis for verification of Ceramic MAXPHASE™ in their fuel cell system.
Impact Coatings has delivered coated plates in accordance with a disclosed order to a leading East Asian auto manufacturer. The time plan is aggressive and all parties involved are working together to evaluate the coating as quickly as possible.
Fuel cell production for Michelin has started at Impact Coatings’ facility in Linköping. The work comprises the starting phase of a process through which Michelin will be able to deliver its first fuel cell system to customers. Volumes are expected to increase over time.
Symbio FCell has also received coatings from Impact Coatings during the period.
The number of potential customers has increased following the FC Expo in Tokyo, which is the world’s largest fuel cell conference. At the moment, we are following up contacts with prospective customers through their visiting Impact Coatings in Linköping, and production for evaluation of coatings is starting. Several of these potential customers need scalable production lines for coatings within the near future.
Reflectors Impact Coatings sees a continued increasing interest from the automotive industry in our coating system for reflectors. Above all, the possibility of integrating Impact Coatings’ system in the production flow is generating interest. The company is negotiating with several reflector producers, which in turn deliver to auto manufacturers.
Impact Coatings has during the period developed a new application regarding coating of radar emblems. Radar emblems are a fundamental component in an application that is integrated in cars to increase safety through avoidance of pedestrians, obstacles, or other vehicles. The radar is placed behind the emblem in the car’s grill and the emblem therefore needs to have a special transparent coating. Impact Coatings has a competitive technology to coat radar emblems, and the market and customers are principally the same as for reflectors.
RESEARCH & DEVELOPMENT
Impact Coatings’ strategy is to be the leading player in its chosen segments. R&D is therefore a priority.
We continue therefore our work with improving the efficiency of the coatings required for delivering world-leading niche products. Additional projects have therefore commenced to develop the next generation of coatings and coating systems.
Impact Coatings’ development work is also focusing on supporting the manufacturing and ”productification” of the coating machines. There is also an emphasis on supporting the sales organization through focused development and testing within the prioritized market segments, Reflectors and Fuel Cells.
PRODUCTION
The coating operations that take place in Impact Coatings’ facilities in Linköping have an increased responsibility now to support sales of coating systems. It is a clear advantage to be able to deliver customer samples quickly and with high quality, support the customer’s development and deliver pre-production smaller series, not least within the Fuel Cells market segment.
The company also continues to develop pure subcontracting services in the different market segments. Coating of fuel cell plates is now the largest application and is expected to increase during 2018 and 2019. Among others, production of coatings of fuel cell plates for Michelin has started during the quarter.
The coating machine being produced for Borit NV and developed under the EuroStar project Pro-FC will be ready for testing during April. The machine will first run at Impact Coatings’ facilities to tune the coating processes. Afterwards, we expect the machine to be moved to Borit’s own production environment during the third quarter this year.
Production of the coating machine for Xin Point is proceeding according to plan and will in June be shipped from Sweden to Xin Point in China.
Production of two demonstration machines has begun.
Linköping 2018-04-20 Henrik LjungcrantzCEO
AUDITOR’S REVIEW AND ACCOUNTING PRINCIPLES
This interim report has not been subject to auditor review.
UPCOMING FINANCIAL EVENTS
Annual general meeting: 17 May 2018
Interim report for the second quarter 2018: 17 August 2018
Interim report for the third quarter 2018: 26 October 2018
Year-end report for 2018: 15 February 2019
For more information contact: Henrik Ljungcrantz, CEO Tel: +46 70-663 55 80
Impact Coatings AB (publ) is required to disclose this information in accordance with EU market abuse regulations. The information was delivered, via the contact person named above, for publication on 20 April 2018, 08:00 CET.
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FINANCIAL RESULTS FOURTH QUARTER 2017
· Net sales amounted to SEK 2 220 thousand (9 480) · Operating profit amount to SEK -11 095 thousand (-2 316) · Profit after net financial items amounted to SEK -10 581 thousand (-2 944) · Cash flow amounted to SEK 63 180 thousand (-4 452) · Equity-to-assets ratio amounted to 85,4 % (66,6)
SIGNIFICANT EVENTS AFTER PERIOD-END
· Delayed delivery to Chinese Huaqing Power Technology · First production order for Ceramic MAXPHASE™-coatings for fuel cell plates from French Michelin’s fuel cell manufacturing
The past year has been eventful for Impact Coatings both in terms of new business and agreements primarily in Asia, but also with respect to the company’s development in order to develop and manage a growing market.
I December, we completed a capital increase that provided ca SEK 109,4 million before issuance costs. The company’s liquidity is thefore good and the capital will be used to finance our intensified efforts primarily in the fuel cell market in China but also greater Asia, Europe, and North America.
Through the capital increase, Impact Coatings welcomed a new main shareholder in Accendo Capital, a Luxembourg-registered equities fund that invests in listed small cap companies and takes an active owner role. Accendo has a strong track record of long-term investments since its inception in 2008.
This, in combination with growth in the interest for Impact Coatings and our offering, help us believe in a bright future. Our strategic focus on coatings for fuel cell plates and the fact that we have a competitive offering have been demonstrated through our order agreements.
Strong market for fuel cells and reflectorsThe market for fuel cells in China is growing quickly following the Chinese governemtns support to companies and local authorities that produce heavier hydrogen-powered vehicles such as busses and light trucks. We are in contact with many players in China that have either already established production facilities for fuel cells, or are in the process of building such plants.
China continues to be a strong market, but during late 2017 we also saw an increasing interest in Europe. The interest is tied to our coating technology for fuel cell plates, but above all in our market vertical Reflectors. Our breakthrough order with Iskra Mehanizmi (Slovenia) has become a reference case that is gaining recognition. Interest in the coating system within the automotive industry has therefore increased and we are now in discussions with a couple of Tier 1 suppliers that are currently evaluating our coatings.
Development costs affect profitsThough the interest in our offering is significant and we periodically sign orders, it takes time before revenues from new orders show in our financial results. That, in combination with costs we have absorbed for shifting to a more industrialized production to meet increased demand, have impacted profit during the year.
Delays and deliveriesDeliveries to some of our largest customers in China have been subject to delays. This has tied up capital, which has had a negative effect on liquidity.
With respect to our order in the fuel cell market in China from autumn 2016 – a binding agreement with China Hydrogen Energy (CHE) worth over SEK 100 million for the delivery of eight to ten coating machines over three years – there are delays. CHE has informed us that the construction of their first production facility has been delayed and therefore shift the first deliveries from us to 2018.
Similar conditions apply with respect to the order of six coating machines from the Chinese fuel cell manufacturer Huaqing Power Technology, from October 2017, with a total order value of SEK 50 million and deliveries planned for 2018 and 2019. As Huaqing is not ready with other parts of its production line, the deliveries of the first two coating machines, which were planned for the first quarter of the year, have been pushed back.
Work with our first order under the distribution agreement with Japanese Optorun continues as planned. The order, which represents a breakthrough on the Chinese market for the market vertical Metallization, is for a coating machine for the Chinese supplier to the automotive industry, Xin Point, with an order value of SEK 8 million for delivery during 2018.
Important partners for local presenceDuring the year, we have strengthened our presence in Asia and hired our first local sales representative in China, who started at the beginning of September and now is driving sales activities on the fast-growing Chinese market.
Cooperating with Optorun is an important step forward for us on the Asian market. We are actively working to find additional local partners as local presence is important to build up this market. An example of this work is the order we received from Xin Point.
Outsourced manufacturingTo meet the increasing demand for our coating technology, we have during the year invested in industrializing and modularizing the production process. This has generated costs during 2017, but means that we have created an effective and more flexible production where we, among other things, can leverage sub-suppliers in a completely different way to increase quickly our production capacity. We will in addition begin producing sub-components at sub-suppliers during 2018 to speed up deliveries to the Asian market.
Linköping 2018-02-16
Henrik Ljungcrantz CEO Impact Coatings
Fourth quarter 2017
Net sales amounted to SEK 2 220 thousand (9 480). Operating costs amounted to SEK -13 826 thousand (-12 424). Operating profit before depreciation and other operating costs amounted to SEK -11 095 thousand (-2 316). Profit before tax amounted to SEK -10 581 thousand (-2 944). Cash flow amounted to SEK 63 180 thousand (-4 452).
Full year 2017
Net sales amounted to SEK 30 418 thousand (32 997). Operating costs increased to SEK -60 529 thousand (-39 910). Net financial items amounted to SEK 224 thousand (-5). Net income amounted to SEK -29 887 thousand (-6 917). Cash flow amounted to SEK 43 238 thousand (20 192) for the full year. The equity-to-assets ratio as of year-end was 85,4 % (66,6).
Capitalized development costs amounted to SEK 4 151 thousand (2 077).
Provisions for deferred tax assets, as in prior years’ accounting, have not been made.
Financial position and liquidity
Liquid assets at year-end amounted to SEK 65 386 thousand (22 147). Accrued revenues amounted to SEK 7,4 million (2,8) at year-end. Corresponding deferred revenues amounted to SEK 9,8 million (10,3).
Interest-bearing debt at year-end amounted to SEK 2 061 thousand (0). The equity-to-assets ratio amounted to 85,4 % (66,6).
Cash flow from operations during 2017 amounted to SEK -43 802 thousand (-7 383).
Cash flow from investment activities amounted to SEK -7 628 thousand (-1 998). Cash flow from financing activities amounted to SEK 84 668 thousand (29 572). Total cash flow for the year was SEK 43 238 (20 192).
The status in Impact Coatings’ market verticals is described in more detail below. Impact Coatings’ primary focus is on Fuel Cells and Reflectors, but the company is also actively working in the Electrical Contacts and Metallization/Decorative Coatings segments.
Fuel Cells
Electrification of the vehicle fleet is happening quickly. In our part of the world the change is mainly centered around battery-powered electric vehicles and hybrids. Nearly all auto manufacturers, above all those in Asia, are also developing hydrogen-powered electric cars that use fuel cells. Serial-produced fuel cell vehicles from Toyota, Honda, and Hyundai and prototype vehicles from other manufacturers are on the streets. Hyrdrogen-powered electric vehicles have many advantages, for example fast fueling and long range. The hydrogen car can more than battery-driven vehicles be used in the same way as today’s cars.
Impact Coatings has achieved a unique position in the fuel cell industry, above all for motor vehicles. In order to be inexpensive, metal bipolar plates are used in the fuel cells. Impact Coatings’ fuel cell coating – Ceramic MAXPHASE™- and a cost-effective coating technology best meet the automotive industry’s requirements of these critical components in the fuel cell. This has opened doors for the company at most of the world’s auto manufacturers. Ceramic MAXPHASE™ is now being evaluated for many of the cars that will be produced at the beginning of the next decade.
At the same time, plants are being built today in China for production of fuel cells, primarily for busses and light trucks. The Chinese government has in its five-year plan identified hydrogen fuel cells as a priority to help reduce air pollution in cities. The government is therefore financing a rapid build-up of fuel cell production and subsidizes hydrogen-powered busses, for example.
The developments in China give Impact Coatings substantial opportunity near-term to sell coating machines, with associated after-market. The company has so far signed agreements with China Hydrogen Energy (CHE) and Huaqing Power Technology regarding machines for coating fuel cells as well as delivery of coatings for the development of Telos Auto’s fuel cell system.
China is investing heavily in fuel cells, which has created fertile ground for many new local companies. The rapid growth is largely tied to the government and local authorities investing in the sector. As a consequence, we have noticed that projects can be delayed while these investments are pending. This has affected our machine deliveries, which have been delayed as a result.
Reflectors
Lighting in modern cars is becoming more and more advanced, and the number of lights has increased quickly. Headlamps today are advanced systems, often with moving parts. Inside the cabin, light is generated from hidden sources. Common to many of these lights is that they include reflectors formed of plastic with reflective metallic coatings. There are some thousands of PVD-systems active in the automotive industry used to metallize light reflectors, but they are too few and poorly equipped for the many small reflectors now demanded by auto manufacturers.
Impact Coatings’ coating system INLINECOATER™ R with accompanying reflective coating is optimal for automated production of today’s many small vehicle reflectors. A first system delivery, where PVD was integrated with plastic injection molding of vehicle reflectors, was to Iskra Mehanismi (Slovenia) during June 2017. With this reference case behind us, marketing in the Reflectors segment has intensified during 2017, which has led to several ongoing business prospects. As a next step, we will approach also the Asian and American automotive industries.
Electrical Contacts
Within the market vertical Electrical Contacts, the company offers coatings and production solutions for different types of electrical connectors. Primarily two coatings are marketed, Ultra MAXPHASE™ for extreme environments and Silver MAXPHASE™, which can replace gold plating on contacts. Sales in both segments are today primarily generated as services using the company’s own facilities.
Impact Coatings’ offering in the market vertical Metallization is similar to that in Reflectors. The company’s PVD system for metallization is integrated with plastic injection molding for cost-effective production of metallized plastic parts. The products are often decorative components for the auto industry. The company has delivered several systems to automotive components manufacturers in Europe, among them German A. Maier Präzision GmbH, delivered during Q1 2017.
2017 also saw a breakthrough in the Asian market. Chinese Xin Point, a supplier of automotive components with customers in Asia and North America, ordered one INLINECOATER™ system for metalllization of decorative plastic components. The coating machine will, among other things, be used for so-called seed layers, where the coating replaces the hazardous (to health and the environment) use of hexavalent chromium to coat plastic.
The phasing out of hexavalent chromium, also called hex-chrome or chromium-6, from manufacturing is driving the transition from wet chemistry plating of plastics to, among other methods, PVD-metallization.
Many of the PVD systems that Impact Coatings has delivered historically are used for decorative coatings of metal for various high-quality consumer products, for example eyeglasses and watches. Ongoing business prospects show a continued interest in the unique wear-resistant colored coatings and cost-effective production solutions that Impact Coatings offers.
Impact Coatings’ activities in research projects together with Uppsala University and Linköping University continue, specifically within material science with the FunMat project. The project should lead to increased understanding and knowledge of metal materials, pre-treatments and coating processes during fuel cell manufacturing.
Completion of a newly developed coating system, as part of the EuroStar project Pro-FC, has progressed during the latter part of the year.
During the period, focus has been on ramping up new machines, both with respect to the machines’ processing and quality. Factors such as productivity, efficiency, and reliability have been in focus. Testing and feedback have been an important part of the efforts. Coating targets and consumable materials have become more efficient.
We have made plans for how the company shall progress further in the different focus areas.
Comprehensive work has been performed during the year with respect to productification and modularization of the coating machines to facilitate more efficient production and outsourcing of production, in order to increase more flexibility in the production process.
Two INLINECOATER™ FC machines for fuel cell customers were produced during the autumn. One became ready for delivery during January 2018 and the other will be ready in March 2018.
The new coating system for fuel cell plates that will be delivered to Borit NV and that has been developed under the EuroStar project Pro-FC, has been delayed a few months and is expected to be finished during the spring 2018. In parallel, one INLINECOATER™ for metallization of plastic is being produced for Chinese Xin Point.
The organization for maintenance and support of customer machines changed during the year and was given a clearer focus, at the same time a review of the company’s after-market offering continued.
Coating on a subcontracting basis was done primarily for fuel cell customers, as well as in med tech, decorative coatings, and electromagnetic shielding.
The introduction of a new quality assurance system according to the automotive industry’s IATF 16949 standard for the whole company has progressed during the year and is now fully adopted into production for fuel cell coatings. Measurement of key metrics continues for one year before the certification process can begin, which is planned for 2018.
As Huaqing is not ready with the other parts of its production line, the delivery of the first two coating machines, which should have occurred during the first quarter this year, has been pushed back.
A first production order for the Ceramic MAXPHASE coating has been received from tire and automotive components manufacturer Michelin for SEK 0,2 million. The coating service will be provided from Impact Coatings’ facilities in Linköping, Sweden. The company has previously delivered coatings for Michelin’s fuel cell development. Demand from Michelin and the expected delivery volumes are expected to increase successively during 2018 and 2019 as production of fuel cells increases.
Linköping, Sweden 2018-02-16
Henrik LjungcrantzCEO
For more information, contact Henrik Ljungcrantz, tel. +46 70 663 55 80.
This year-end report has not been subject to review by the auditor.
Annual General Meeting 2018: 17 May 2018
Report for the first quarter 2018: 20 April 2018
Report for the second quarter 2018: 17 August 2018
Report for the third quarter 2018: 26 October 2018
Impact Coatings AB (publ) is required to disclose this information in accordance with EU market abuse regulations. The information was delivered, via the contact person named above, for publication on 16 February 2018, 08:00 CET.
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· Value of initial order SEK 0.2M
· Important order in the European fuel cells market
Impact Coatings, which develops and sells world-leading technology for PVD-coatings of fuel cell plates and vehicle reflectors, has received its first production order for Ceramic MAXPHASE™ coatings from Michelin.
The French tire and auto components manufacturer is in a build-up phase in its fuel cell manufacturing initiative. Michelin manufactures fuel cell systems for trucks, busses, and automobiles and has selected coatings from Impact Coatings for its production.
Impact Coatings has previously delivered coatings for Michelin’s fuel cell development. Demand and delivered volumes are now expected to increase gradually during 2018 and 2019 while production of fuel cells increases.
A first order for Ceramic MAXPHASE coatings has been received for SEK 0.2M. The coating service will take place at Impact Coatings’ facilities in Linköping, Sweden.
”The cooperation with Michelin is very positive and an important sign that the European fuel cell market is ramping up. Michelin has approved and qualified our coating and is of the view that it has the best performance to increase fuel cell system efficiency,” said Impact Coatings CEO Henrik Ljungcrantz.
For more information, contact:Henrik Ljungcrantz, CEOTel: +46-70-663 55 80 or e-mail: henrik.ljungcrantz@impactcoatings.se
Impact Coatings AB (publ) is required to disclose this information in accordance with EU market abuse regulations. The information was delivered, via the contact person named above, for publication on 12 February 2018, 08:00 CET.
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· Huaqing is not ready with other portions of the production line
· Revenue of SEK 15.2M will be recognized for the machines during 2017 according to plan
· The delay does not affect profit or revenues for 2017
· The 2017 balance sheet will show a corresponding entry of SEK 15.2M under accrued revenue
· There is a negative liquidity effect during Q4 2017 of SEK 7.8M due to outstanding prepayment invoices
· Impact Coatings’ liquidity remains good
Impact Coatings, which develops and sells world-leading technology for PVD-coatings of fuel cell plates and vehicle reflectors, signed during autumn 2017 an agreement with the Chinese fuel cell producer Huaqing Power Technology for delivery of six coating machines during 2018 and 2019. Impact Coatings has now been informed by Huaqing that the delivery plan for the first two coating machines is delayed. The reason is that other portions of the production line for fuel cells are not yet ready.
”The first coating machine that, according to the forecast, should have been delivered during January, is complete and ready for delivery while the second machine will be complete during March. Huaqing is not able to accept delivery of the machines until the production issues for the relevant production line are resolved. The updated forecast is for delivery later during 2018,” said Impact Coatings CEO Henrik Ljungcrantz.
The delay does not affect profit or revenues for 2017. Revenue of SEK 15.2M will be recognized for the machines during 2017 according to plan. The 2017 balance sheet will show a corresponding entry of SEK 15.2M under accrued revenue.
There is a negative liquidity effect during Q4 2017 of SEK 7.8M due to outstanding prepayment invoices. Impact Coatings’ liquidity remains strong, however. The prepayment invoices will be paid when the production line is complete.
The coating machines in question are under Impact Coatings’ ownership until they are delivered and paid for in full. The machines can therefore be sold and delivered to other customers on short notice should further delays materialize.
The agreement with Huaqing is for delivery of six coating machines – InlineCoater™- during 2018 and 2019. Production and delivery of the machines occurs in three phases of two machines each. It is the first delivery that is now delayed. Huaqing confirms that the delay is not due to lack of financing but exclusively related to other components in the production line not being completely ready.
For more information, contact:Henrik Ljungcrantz, CEOTel: +46 70-663 55 80 or e-mail: henrik.ljungcrantz@impactcoatings.se
Impact Coatings AB (publ) is required to disclose this information in accordance with EU market abuse regulations. The information was delivered, via the contact person named above, for publication on 31 January 2018, 18:00 CET.
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The Board of Directors of Impact Coatings AB (publ) (“Impact Coatings” or “the Company”) has decided to call an extraordinary general meeting of shareholders on 23 November 2017 (“the EGM”) in order to decide on (i) a rights issue of maximum 8,034,191 new shares (“the Rights Issue”), (ii) an equity issuance of 2,380,953 new shares directed to Accendo Capital SICAV SIF (“Accendo Capital”) (“the Directed Issue”) and (iii) a new issue of 800,000 warrants, entitling the holder to the subscription of 800,000 new shares in the Company, directed to Accendo Capital (“the Warrants”).
The background to the Board of Directors’ proposal above is that the Company needs capital to finance its expansion in the fuel cells market segment. The Company has therefore entered an agreement with Accendo Capital through which Accendo Capital has committed to subscribe all shares in the Directed Issue and to, without subscription rights, subscribe all shares in the Rights Issue that are not subscribed by other parties, i.e., fully underwrite the Rights Issue. Accendo Capital’s commitments are conditional upon the EGM deciding in accordance with the Board of Directors’ proposal as above. The commitment to subscribe shares in the Directed Issue is further conditional upon Accendo Capital being offered to subscribe for the Warrants. As compensation for Accendo Capital’s underwriting commitment with respect to the Rights Issue, Accendo Capital shall receive an underwriting fee of SEK 6,748,720 corresponding to eight (8.0) per cent of the underwritten amount.
A summary of the proposed conditions for the share issues is provided below. The principal conditions are further described in the call to the EGM and the complete conditions shall be presented on the Company’s homepage for a minimum two (2) weeks before the EGM.
Summary
Henri Österlund, founder of Accendo Capital, said:
”In our view, Impact Coatings is, after 20 years as a development venture, beginning a transformation into a financially self-sufficient company in the industrial coatings segment, with good growth opportunities. Accendo Capital is a long-term and active investor with a history since 2008 of investing in listed small cap Nordic companies, for example Okmetic Oyj and Hexatronic Group AB. Accendo Capital and Impact Coatings share an entrepreneurial energy that drives change and progress. We look forward to working together with CEO Dr. Henrik Ljungcrantz, the Board of Directors, and the company to help Impact Coatings reach its full potential.”
Background and rationale
There is a global focus on reduced emissions of environmentally dangerous gases, which implies that fuel cell-powered vehicles – and therefore use of the Company’s coating solutions – are increasingly in demand. A vehicle fuel cell comprises of a “stack” of bipolar plates and other components. In order to extend the life of the fuel cell it is of paramount importance for the bipolar plates to be coated with corrosion-resistant material, which is why gold has long been considered an appropriate coating material. Gold is expensive, however, with the Company’s solutions offering a cost-effective alternative whose corrosion resistance, weight and volume are considered comparable or better than gold with improved conductivity. For these reasons, demand from especially Chinese producers has increased sharply since 2016. The company delivers world-leading technology for physical vapor deposition (PVD) coatings of fuel cells and vehicle reflectors and will now expand its offering with a strategic focus on China.
Proceeds from the proposed equity issuances will be allocated as follows:
(%)
”It is extremely satisfying and important that ahead of the expected rapid development of the fuel cell market to get a stable, experienced, and active main shareholder. Accendo Capital has a good track record as an active owner in listed companies, with a goal of creating long-term shareholder value.
Accendo Capital has done a very good job as owner in both Hexatronic and Okmetic, and we are convinced that having Accendo Capital as the clearly largest shareholder of Impact Coatings will strengthen the company. They will be an important support for Impact Coatings in our intensified investment primarily in China but also in greater Asia, Europe, the U.S. and Canada. In our work to meet the expected demand, we will make the production process industrially scalable”, said Impact Coatings CEO Dr. Henrik Ljungcrantz.
Proposed equity issuances
The Board of Directors proposes that the EGM decide to complete the Rights Issue, through which the Company’s shareholders will have subscription rights to subscribe for new shares, in proportion to the numbers of shares owned on the day of record and at a subscription price of SEK 10.50 per share. In the Rights Issue, four (4) existing shares qualify the holder to the subscription of one (1) new share. Through the Rights Issue, the Company’s share capital will increase with maximum SEK 1,004,273.875 and the number of shares with maximum 8,034,191 shares and the Company will receive total subscription proceeds of SEK 84,359,005.50 before transaction costs.
The proposed subscription period for the Rights Issue is from 5 December 2017 up to and including 19 December 2017. The Board of Directors proposes to maintain the right to extend the subscription period and the payment period. Trading with subscription rights will take place on the Nasdaq Stockholm First North market from 5 December 2017. Subscription rights not used for subscription as of 19 December 2017 or sold at the latest 15 December 2017 shall become void and therefore will have zero value.
The Rights Issue is conditional upon approval, before the start of the subscription period, by the Swedish Financial Services Authority (Finansinspektionen) of the prospectus that the Company will publish. If such approval has not been granted by 30 November 2017, the subscription period and the period for trading of subscription rights will be postponed.
The Board of Directors proposes further that the EGM decide to execute the Directed Issue through which Accendo Capital qualifies to subscribe for 2,380,953 Company shares at a subscription price of SEK 10.50 per share, corresponding to the subscription price of the Rights Issue. Through the Directed Issue, the company’s share capital will increase by SEK 297,619.125 and the number of shares will increase by 2,380,953 shares and the Company will receive proceeds of SEK 25,000,006.50 before transaction costs.
The Board of Directors proposes further that the EGM decide to issue Warrants that qualify Accendo Capital to subscribe for 800,000 new Company shares, at a subscription price of SEK 17.50 per share. The Warrants are proposed to be exercisable from the date of registration by Bolagsverket and for a period of two (2) years. If the Warrants are fully exercised the Company’s share capital will increase by SEK 100,000 and the number of shares will increase by 800,000 shares and the Company will receive proceeds of SEK 14,000,000 excluding transaction costs.
Through the agreement with Accendo Capital, the Company has ensured that the Rights Issue and the Directed Issue will be fully subscribed, provided that the EGM decides in favor of the issuances and the issuing of the Warrants.
Accendo Capital reaches, through the Directed Issue and the Warrants, an ownership corresponding to approximately 7.3 percent of the shares and votes in the Company after the Rights Issue (and excluding any potential shares received through the underwriting of the Rights Issue).
The reason for the divergence from shareholders’ subscription rights with respect to the Directed Issue and the issuance of Warrants is in part to secure the Company’s capital-raising to make possible the Company’s expansion, and in part to increase the Company’s shareholder base with a strong and long-term main owner that works actively in the company’s and shareholders’ best interests, which Accendo Capital is deemed to be.
Dilution
The total dilution for the shareholders not participating in the Rights Issue is approximately 25.9 percent, assuming the Warrants are exercised in full.
Preliminary timeline for the Issuances (all dates refer to 2017)
23 November: Extraordinary general meeting of shareholders to decide on the proposed issuances29 November: Last day for trading of Company shares including subscription rights30 November: First day for trading of Company shares excluding subscription rights30 November: Estimated publication of the prospectus1 December: Date of record for assignment of subscription rights5 December: Trading in BTA begins, continues until the Issuance is registered with Bolagsverket5 December to 15 December: Trading of subscription rights on First North5 December to 19 December: Subscription period (subscription via payment)
Shareholders’ meeting
The proposed issuances are conditional upon decisions of the EGM. The EGM will be held Thursday, 23 November 2017 at 3:00pm at Westmansgatan 29, 582 16 Linköping. The call to the EGM will be published via a separate press release today and will be made available on the Company’s homepage.
Advisors
Stockholm Corporate Finance is the financial advisor. The law firm Glimstedt is the legal advisor.
For further information contact:
Henrik Ljungcrantz, CEOTel: +46 706 63 55 80E-mail: henrik.ljungcrantz@impactcoatings.se
This information is such that Impact Coatings is required to disclose pursuant to the EU’s market abuse regulations. The information was given, under the responsibility of the above named contact person, for publication on 31 October 2017.
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About Impact Coatings AB
Impact Coatings delivers world-leading technology for PVD coating of fuel cell plates and vehicle reflectors. PVD is a method of, in a vacuum, producing thin films of metals and ceramics, i.e., surface coatings that maximize performance and durability. Impact Coatings’ patented technology increases, among other things, the efficiency of a fuel cell by 25-30 percent compared to other solutions. The Company is strategically positioned in the international market for hydrogen-fueled vehicles, which are now on the verge of a significant breakthrough.
The Company has developed a portfolio of coating processes for plastics and metals that are marketed, among others, under the umbrella name MaxPhase™. Included are coatings with unique performance properties for, among others, fuel cells, electrical contacts and reflectors. Impact Coatings offers in addition to contract processing also the coating systems InlineCoater™, PlastiCoater™ and ReelCoater™ for customers with Lean-organized component production that includes PVD.
The Company’s shares are traded since 2004 on Nasdaq First North. The Company’s Certified Adviser is Remium Nordic AB.
About Accendo Capital
Accendo Capital is a Luxembourg-based fund that invests in listed small cap companies in northern Europe and is an active owner. The fund is open to qualified professional investors only. The fund has achieved an average annual net return of 34% since 2014 and 14% annually since its 2008 launch. The fund has a particular focus on companies that are driving, or benefitting from, technological innovation.
About Stockholm Corporate Finance AB
Stockholm Corporate Finance is an independent privately held financial advisor that offers services within qualified advisory regarding capital raising, ownership changes, acquisitions, mergers and divestments (M&A) to listed and privately owned companies and their owners. Stockholm Corporate Finance is the exclusive Swedish partner in the global network M&A Worldwide, which comprises 44 M&A advisors and investment banks in 38 countries. Stockholm Corporate Finance is a securities dealer regulated by the Swedish Financial Services Authority and is a member of the industry organization SwedSec Licensiering AB. For more information, visit: www.stockholmcorp.se
Important information
The information in this press release does not constitute an offer to acquire, subscribe or by other means trade shares, subscription rights or other securities in Impact Coatings. The invitation to applicable individuals to subscibe for shares in Impact Coatings shall only occur through the prospectus that the Company estimates it can publish around 30 November 2017.
This press release may not be disclosed, published, or distributed, neither directly nor indirectly, in or to the USA, Canada, Japan, Australia, Hong Kong, New Zealand, Singapore, South Africa, or any other jurisdiction where such an action wholly or partly is subject to legal restrictions, or would require additional prospectus, registration or other actions apart from what follows from Swedish law. The information in this press release may not be forwarded or reproduced in such a way as to contravene such restrictions or otherwise trigger such requirements. Actions in conflict with this directive can constitute a violation of applicable securities law.
No subscription rights, paid subscribed shares or shares have been registered, or will be registered, according to the U.S. Securities Act of 1933, in its current form, (“Securities Act”) nor according to comparable law in another jurisdiction in the USA and may therefore not be offered or sold, directly or indirectly, in or to the USA, except in accordance with an applied exception from, or transaction not encompassed by, registration requirements of the Securities Act and in accordance with securities law in the relevant state or other USA jurisdiction.
This press release can contain certain forward-looking information that reflects Impact Coatings’ current view of future occurrences and financial and operational development. Words such as “refers to”, “expects”, “deems”, “can”, “plans”, “estimates” and other expressions that imply indications or predictions with regard to future development or trends, and that are grounded in historical fact, comprise forward-looking information. Forward-looking information is by its nature associated with known and unknown risks and uncertainties since it is dependent upon future events and circumstances. Forward-looking information does not comprise any guarantee of future results or development and actual events can substantially vary from that which is given as forward-looking information.
This is an English translation of the original press release issued in Swedish by Impact Coatings on 31 October 2017. This translation is for informational purposes only. In any cases of doubt or discrepancy, material or immaterial, the Swedish original version shall supersede this English translatio
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