Aqua Bio Technology ASA (ABT) reported a loss after tax of NOK 9 million in the first half of 2018 and EBITDA of minus NOK 8.6 million. The corresponding figures for the same period the previous year were minus NOK 2.9 million and minus NOK 3.3 million, respectively. The main reasons for this result are the loss of fixed minimum royalty payments, lower sales than expected, as well as costs related to the dispute in the United States.
ABT's revenues in the first half of 2018 amounted to NOK 0.65 million, compared to NOK 8.9 million in the corresponding period of 2017. The loss of fixed minimum royalties from the original agreement with the company's American partner, Restorsea, is the main reason to the reduction in revenue. In addition, the company experienced lower than expected revenues from sales of the company's consumer products during the period.
The dispute with a former US customer was settled in February 2018 and have incurred costs for the company of more than NOK 20 million overall.
ABT entered into a distribution agreement for Kuwait/Middle East in April 2018. This is in line with the company's business model which includes commercialization of third party cosmetics to consumers and professional retailers.
ABT has assisted its distributors during the period, in launching its products in several countries including Switzerland and Germany. The distributors work continuously with sales to retailers in their respective markets. The company has also signed a letter of intent with a potential new partner for Saudi Arabia after the period.
The company still believes that the chosen business model will contribute to future revenues and positive development for the company, and it has been working on establishing new distribution agreements as a key priority. The company is continuously in discussions with both existing and new potential partners for the sale and distribution of the skin care series Moana and Cuvget.
A former Swedish customer filed a complaint against the company in June 2018. The lawsuit alleges that ABT has not fulfilled its obligations following a settlement agreement from 2009. ABT rejects that there is a basis for any claim against the company.
The company's financial situation indicates that the Company seeks to raise additional capital during the second half of 2018.
For further information, contact CEO of Aqua Bio Technology, Arvid Lindberg, tel. +47 982 45 410.
Aqua Bio Technology (ABT) has launched several cosmetic ingredients being used in skin care products globally. Skin care is the fastest growing segment in the cosmetics industry, where ABTs ingredients have established a foothold. In addition to ingredients ABT also commercializes new technologies/skin care products through in-licensing agreements with third parties. Aqua Bio Technology is listed on Oslo Axess.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
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