Interim Report Q3 2023

STOCKHOLM, SE / ACCESSWIRE / November 30, 2023 / STRAX (STO:STRAX)(FRA:NOBC) STRAX - Tough trading conditions remain, yet managed to complete first divestment process

The Group's sales for the period January 1 - September 30, 2023, amounted to MEUR 20.4 (25.9) with a gross margin of 14.2 (17.9) percent.

The Group's result for the period January 1 - September 30, 2023, amounted to MEUR -26.6 (-6.4) corresponding to EUR -0.22 (-0.05) per share.

EBITDA from remaining operations for the period January 1 - September 30, 2023, amounted to MEUR -14.6 (-2.1).

Equity as of September 30, 2023, amounted to MEUR -33.6 (4.7) corresponding to EUR -0.28 (0.04) per share.

Auditors' review report of the interim report includes a reservation concerning the Segment distribution as well as information of special importance.

As of September 30, 2023, STRAX is not fulfilling the special conditions in the loan agreement with PCP due to the development of profitability and financial position in the Group. STRAX board and management is working closely with PCP on the strategical and tactical plan to return to compliance of the agreement. The plan includes divestment of non-core assets to increase focus as well as reduce costs and lightening the balance sheet and in the longer perspective increase the financial position of the Group. In addition, several initiatives have been taken to partially divest and find strong financial partners for core parts of the business to ensure they can continue to grow and prosper without being limited by the constrained cash of the Group. With these initiatives we are optimistic STRAX will be sitting on solid assets that will continue to develop in the right direction and generate value for STRAX and its stakeholders. STRAX is now executing the plan and expects to considerably lower the debt level of the Group during 2023 and 2024 and in particular repay significant parts of the outstanding amounts under the loan agreement. The board and management have taken numerous actions to ensure the remaining business returns to profitability as well as taking actions on loss making operations being discontinued. After the end of the period STRAX has received a waiver from PCP concerning the breach.