DGAP-Adhoc

Refusal of audit opinions for annual financial report 2020 (HGB) and consolidated annual financial report 2020 (IFRS); measures to secure further financing in implementation

DGAP-Ad-hoc: aap Implantate AG / Key word(s): Miscellaneous Refusal of audit opinions for annual financial report 2020 (HGB) and consolidated annual financial report 2020 (IFRS); measures to secure further financing in implementation 29-Apr-2021 / 16:26 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

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aap Implantate AG ("aap" or "Company") was informed at today's balance sheet meeting that the auditor Mazars GmbH & Co. KG Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft, Hamburg, will refuse the audit opinions for the annual financial report 2020 (HGB) and the consolidated annual financial report 2020 (IFRS). The background to this is that in the auditor's view up to the time of today's balance sheet meeting no sufficient evidence could be presented that aap's financing is secured for the twelve-month period. As a result, the auditor will declare the non-issuance of audit opinions due to an audit impediment and issue a note of refusal. In this case too, the Supervisory Board will adopt the annual financial statements (HGB) for the 2020 financial year and approve the consolidated financial statements (IFRS) for the 2020 financial year. The publication of the annual financial report 2020 (HGB) and the consolidated annual financial report 2020 (IFRS) is scheduled for April 30, 2021.
 

aap is still undergoing a comprehensive restructuring and refinancing process to secure further financing and thus the Company's continued existence. In this context, aap was already able to make noticeable progress in restructuring in financial year 2020, which is reflected, among other things, in a significantly improved recurring EBITDA (EUR -3.4 million; +28% vs. FY/2019) despite the enormous challenges posed by the COVID 19 pandemic. This improvement was mainly achieved through dynamic sales growth in the US (+41 % vs. FY/2019), an increased gross margin and a significantly reduced cost level. In addition, the Company was able to successfully implement the first two steps of the refinancing with a capital reduction and the issue of a convertible bond in the amount of EUR 2.6 million. In addition, aap has noticeably reduced the repayment amounts for the next few years by selling off excess capacity in its machinery and has raised shareholder loans of EUR 0.4 million.