After the 2022 annual report and extraordinary general meeting, Ekobot is ready for the partially underwritten rights issue, providing capital for delivery of orders received, sales of 25 agricultural robots this year and further growth.
Ekobot AB: Ticker EKOBOT | Price: 3,52 SEK | Market Cap.: 15 MSEK | YTD share price development: -11%
EKOBOT has developed and sells an agricultural robot that both removes weeds and collects data on crops, enabling farmers to reduce their costs by up to 20%. EKOBOT focuses on crops that are difficult/costly to grow in terms of weed control, and thus the segment of agriculture that benefits most economically from using robots. Especially, but not only, organic farms benefit from robots for weed removal as they do not use pesticides. The focus markets are Sweden, the Netherlands and Denmark.
A year of commercial progress
The annual report for 2022 was without surprises, with turnover for the year of SEK 234,000 and cash burn from operations and investments of SEK 23m. Net cash flow was SEK -6m, and cash balance SEK 3m at year end. During the year, Ekobot proved a market-fit through commercial sales to both conventional and organic agriculture, which also prompted the Dutch agribusiness-oriented venture fund Navus Ventures to invest in Ekobot.
SEK 21 million growth capital
With the approval of the Extraordinary General Meeting, Ekobot is ready for the announced rights issue of up to SEK 21 million, with the possibility of an additional SEK 5 million over-allotment. 85% of the issue is secured through pre subscriptions, including from Navus, and guarantees. Ekobot is thus secured capital to deliver the robots already ordered and to sell the 25 robots expected this year.
Potential acquisition of Ekobot
With a market value of SEK 15 million, below the capital invested in the company, Ekobot, like many other development companies, is a potential acquisition candidate. We see both European venture funds and companies in the agricultural sector as possible buyers.
