DGAP-News: NEW VALUE AG: New Value in 2013
(firmenpresse) - EquityStory AG-News: NEW VALUE AG / Key word(s): Interim Report
NEW VALUE AG: New Value in 2013
05.03.2013 / 18:09
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Baar, Switzerland, March 5, 2013
New Value in 2013
In 2012, the focus of the Board of Directors was on restructuring and
ensuring the survival of the company. As explained in our last semi-annual
report, we were able to stabilize the company through November 2012 and pay
back our bridge financing loans in full. This was made possible primarily
through the sale of Swiss Medical Solution AG. Corporate governance and
internal controls were restructured and our legal problems were cleared.
Thanks to these efforts, the Company has regained the strength necessary to
move forward.
Portfolio Companies
With regard to portfolio companies, our emphasis has been on maintaining
and expanding New Value's holdings.
- In October 2012, Bogar AG completed another financing round, with
substantial participation by third-party investors and conversion of
shareholder loans. The company successfully raised CHF 0.7 million in
new capital. This puts Bogar on solid financial ground, allowing it to
concentrate on further expanding its international business.
- In the summer of 2012, Silentsoft SA completed a financing round valued
at CHF 3.1 million. It has adjusted its strategy to focus on short-term
market expansion for existing products in tank monitoring and
vendor-managed inventory. This will allow the business to break even
without the need for additional financing.
- In October 2012, Sensimed SA successfully completed a CHF 17 million
financing round with no participation by New Value required. Sensimed
is now well-equipped to achieve the important goal of obtaining FDA
approval.
- The performance of Idiag AG has fallen short of expectations and the
company is not yet breaking even. It will need additional financing in
2013 in order to achieve growth targets in Switzerland and abroad. A
revaluation of the company has prompted the New Value Board to write
down its loan to Idiag at the end of February 2013 by 50% and to write
off any accrued interest claims.
- Negotiations are underway with ZWS GmbH regarding settlement of an
outstanding loan claim in the amount of EUR 1.5 million. The
negotiations are complicated by the fact that former New Value Board
president Rolf Wägli had granted ZWS a EUR 1 million guarantee on
behalf of New Value for a loan by ZWS to a British Virgin Island
company (see explanation on page 42 of the semi-annual report from
September 2012). Secondly, ZWS is facing financial difficulties and its
ability to pay back the loan is highly uncertain. In view of these
circumstances, the September 2012 semi-annual report showed a partial
value adjustment to the ZWS loan position. Due to the high uncertainty
of the negotiations, the Board decided to write down the loan by
another third at the end of February 2013.
Legal Proceedings
As was reported earlier, New Value, along with former portfolio company
Solar Industries and other parties, has filed charges against former Board
president Rolf Wägli. In January 2013, New Value also filed a civil lawsuit
against Mr. Wägli for damages. Legal action against other responsible
parties is currently being examined and prepared.
Over the course of the investigation, the Board learned that Spero Ltd., to
which Rolf Wägli had illegally wired CHF 10 million in cash, is being
liquidated and the company does not have sufficient assets to cover its
liabilities. The Board considers the recovery of these funds unlikely and
will move forward with its decision to completely write-off the claim.
Strategy Implementation and Cost Structure
Now that the company's situation has been stabilized, the Board is more
strongly focused on implementing its business strategy.
After the completion of the highly labor-intensive turnaround phase, we
have adjusted the contract with our investment advisor in light of the
decreasing workload. Until the end of the year the fees will be reduced on
a quarterly base. In the 2013/2014 fiscal year, this will result in an
annual compensation of CHF 350,000, a 77% reduction from FY 2010/11. As of
2014, annual compensation will fall to CHF 200,000.
Other costs have been reduced as well, at least to the extent possible for
a publicly traded company. The budget for operating expenses in FY 2013/14
will total CHF 867,000.
Despite these significant cuts, our costs remain high relative to our net
asset value and market capitalization. To ensure maximum value for our
shareholders, in 2013 we will increase our efforts to sell our
participating interests.
Net Asset Value
Our decision to write-down the value of our participating interests in
Idiag AG and ZWS GmbH led to a decrease in our NAV of CHF -0.39 per share.
Thus, our NAV as of the end of February 2013 is CHF 3.32 per share.
Financial Calendar
The Annual Report for fiscal year 2012/13 will be published on June 14,
2013.
The Annual General Meeting will be held on August 20, 2013.
End of Corporate News
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05.03.2013 This press release was distributed by EQS CORPORATE
COMMUNICATIONS.
www.eqs.com - news archive: www.eqs.com/ch/presskit
The issuer is responsible for the contents of the release.
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Language: English
Company: NEW VALUE AG
Zugerstrasse 8a
6340 Baar
Switzerland
Phone: +41 43 344 38 38
Fax:
E-mail: info(at)newvalue.ch
Internet: www.newvalue.ch
ISIN: CH0010819867
Swiss Security Number: 552932
Listed: Freiverkehr in Berlin, Düsseldorf, München,
Stuttgart; Frankfurt in Open Market ; SIX
End of News EquityStory AG News-Service
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203099 05.03.2013
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