EKOBOT is an innovative robotics company that has developed an agricultural robot focused on weed control of crops that require a high degree of precision and where the use of robots offers a large cost saving. The company has also developed Ekobot PLUS, which is a cloud-based software as a service (SaaS) that collects field data via the robotic system in real time, which is then analyzed via artificial intelligence (AI). The analysis then serves as decision support for the farmer in terms of inputs for fertilization, irrigation and harvesting.

EKOBOT sold the first robot on fully commercial terms in August 2022, and the investor focus now is therefore on the development of sales in its home country Sweden as well as in Denmark and the Netherlands.

The share price has been declining since the IPO in March 2021, and the company’s market capitalization is now below the level of SEK 36 million (DKK 24 million). EKOBOT is now in the commercial stage, and there is immediately an interesting potential in the share. Most recently, the company has raised 26.8 MSEK, which is why there is no risk of lacking capital in the short term – on the contrary, they have the financial surplus to execute on their plans to sell 25 robot units in 2023 (with delivery in 2024).

Price triggers

• 2023: Sale of robots (target of 25 robot units for delivery in 2024)
• 2023: Additional sales to existing customers
• 2023: Signing of distribution agreement in Denmark
• 2023: Agreement with pilot customer for Ekobot Plus
• 2023: Production of next generation of robotic units

Risks

• Lack of sales and delay of distribution agreement in Denmark
• Delays in the development of the next generation of robots and Ekobot Plus

The robots are coming

Robots for agriculture are growing rapidly globally. This is primarily due to technological development, but also to a large extent due to the efficiency and cost benefits that agriculture gains by using robots. In addition, the growth in organic crops is increasing the need for alternatives to pesticides, including robots. Although several robotics companies have emerged with a focus on the agricultural sector, the market is still young and penetration is low, so there are significant growth opportunities in this part of the robotics sector.

Narrow focus – on a billion-dollar market

EKOBOT has developed an agricultural robot that automatically removes weeds with a focus on the crops that are particularly difficult (and costly) to grow in relation to (mechanical) weed control. The focus is therefore currently on farms that grow onions, which is a billion-dollar market globally. In Europe, the largest producers are located in the Netherlands and Denmark, which is therefore EKOBOT’s market focus together with its home country, Sweden.

SEK 3 million per customer

EKOBOT expects that the robot will typically be sold on a 3-year lease agreement for a total of SEK 900,000 (SEK 300,000 per year). Agriculture needs one robot per 10 ha (100,000 m2) and the typical farm is expected to have a size of 100 ha and therefore a need for 10 robots, corresponding to a revenue for EKOBOT of SEK 3 million per year per customer.

Sales are the focus of investors

EKOBOT has sold its first robot on commercial terms (SEK 900,000) in Sweden for delivery for the 2023 season, in addition to sales for pilot trials in Sweden and the Netherlands. Investor focus is therefore now primarily on the extent to which EKOBOT manages to sell.

Solid cash balance

EKOBOT was listed in March 2021 with an offering price of SEK 22 and at the same time received SEK 20.5 gross in new capital and received an additional SEK 9 million in Q2 2022 from a rights issue of units. As of December 31, 2022, the cash balance was SEK 3 million, but EKOBOT has recently received SEK 26.8 million in growth capital, which eases the pressure on the share price, as the company is thus not in danger of having to raise money in the short term at too low a price.