Rumors suggest that a process went south, while explanations of customers not paying have impacted cash flow. The truth may be a combination of the two, as companies rarely disclose publicly when processes fall through. A long-term solution might have been close, given that the founder injected 600,000 NOK before summer, which they likely wouldn’t have done if everything looked grim or even average.
Regarding the company’s recent communications, we must remember the importance of fulfilling compliance and regulatory requirements on liquidity when being listed on NOTC, with NTG, the largest shareholder, also being publicly traded. With good corporate governance, I expect this unfortunate turn in communications to have been planned with some buffer and foresight. However, I won’t downplay the seriousness in the tone and content.
The company has already secured the necessary steps to hold an extraordinary general assembly. They are now practically asking for all authorizations to sell the company, either in whole or in parts, raise capital, or issue convertible debt. This will empower the board to act efficiently in dynamic negotiations since they will have decision-making power.
The board states that the value of the company’s IP and assets is much more significant than reflected in trading prices, and they clearly plan to explore every option. I believe the company would have folded long ago if there were no substance behind it.
Remember that the largest shareholders, since the start and around 2015/2017, hold shares at an average of 14-16 NOK per share, including investors like NTG, NIK, and others. This is the same level as the share issuance in spring last year and the short-term funding before summer.
I’ve always thought the company would eventually be sold to a competitor because raising capital for deep-tech novel inventions, especially in the semiconductor industry, is extremely difficult. It requires institutional investors with the right expertise and mandate. This is why most semiconductor companies with usable inventions are acquired long before commercial breakthroughs.