– The fourth quarter 2023 was a challenging time for Ekobot. In operational terms, the quarter was positive and involved intensive preparations for commercial deliveries before the 2024 growing season, and transforming from a development company to a fully commercial, industrial operation. However, the quarter offered major financial challenges as our biggest shareholder suddenly informed us that they did not intend to support Ekobot in the upcoming financing round.

CEO Jonas Eklind

Financial information

October – December 2023

Figures in parentheses refer to the corresponding period for the previous year.

• Net sales during the period totaled SEK 6 thousand (0).
• Net earnings for the period totaled SEK -4,898 thousand (-2,806).
• Earnings per share before dilution totaled SEK -0.32 (-0.69).
• Total assets at the end of the period totaled SEK 27,591 thousand (31,223).
• Cash and cash equivalents at the end of the period totaled SEK 1,229 thousand (2,943).

January – December 2023

Figures in parentheses refer to the corresponding period for the previous year.

• Net sales during the period totaled SEK 416 thousand (214).
• Net earnings for the period totaled SEK -21,213 thousand (-10,410). The company’s R&D work has now taken the robot system to a significantly higher level, resulting in the write-off of old prototypes. While earnings in 2023 (SEK -8.5 million) were affected negatively by this impairment loss, cash flow was not affected.
• Earnings per share before dilution totaled SEK -1.64 (-3.22).
• Total assets at the end of the period totaled SEK 27,591 thousand (31,223).
• Cash and cash equivalents at the end of the period totaled SEK 1,229 thousand (2,943).

Significant events

October – December 2023

• On October 24, the company announced that validation of its in-house developed autonomous tool-carrying robot had begun. The initial validation confirmed that the precision in navigation and positioning for the in-house developed robot platform is at least equivalent to the earlier purchased versions.
• On October 27, Telia releases the 5G onion. A yellow onion grown where the weed control was carried out by an autonomous robot from Ekobot instead of traditional chemical weed management. It’s also much tastier according to Gustav Leonhardt, winner of the Chef of the Year award in 2021 and Sweden’s representative in Bocuse D’Or 2024.
• On November 9, the company announced that the European Patent Office (EPO) intends to approve the company’s patent application regarding the mechanical tools system.
• On November 14, the company submitted the final report for the Ekobot project, an autonomous agricultural robot financed by the Swedish Agricultural Agency’s rural development program for 2014–2022 and the EU Commission’s EIP-AGRI program. Project support was granted by the Swedish Agricultural Agency in November 2017 and the total sum was SEK 9.2 million. The project was concluded during the fall of 2023, and following an approved final report, the Swedish Agricultural Agency will disburse the remaining part of the project support, which is around SEK 1.8 million. Because all project expenses have already been paid, the disbursement will provide a direct boost to the company’s cash and bank balances. The exact date for the disbursement has not yet been confirmed but is forecast for the first quarter, 2024.
• On December 1, the company announced that it had received a negative reply from one of the major existing owners in the current financing discussions and that the Board (in consultation with its financial advisor) had assessed the possibility of acquiring new financing as having worsened markedly and that there was little chance of finding a long-term solution before year-end.
• On December 8, the company announced that its second-biggest owner and Board member Tord Cederlund had increased his holding in Ekobot from 6.9% to 9.1%.

January – September 2023

• On January 15, the Board resolved, contingent upon subsequent approval by an extraordinary general meeting, to carry out a new share issue of no more than 8,564,728 shares with preferential rights for existing shareholders. If fully subscribed, Ekobot will receive share proceeds of around SEK 21.4 million before issue expenses. The issue is subject to around 85% of the subscription rights and guarantees. Also, the Board may resolve on an over-allotment issue in the form of a targeted new share issue of no more than SEK 5.4 million on the condition that the rights issue is fully subscribed.
• The company published its strategic goals for 2023.
• In January, the company signed an agreement with a Swedish customer in the organic vegetable cultivation sector. The agreement concerns a robot system for delivery in time for the 2023 growing season.
• An extraordinary general meeting held on February 16 approved the Board’s proposal concerning a new share issue and resolved on the incentive program 2023/2026A-B to issue warrants to senior executives, employees, consultants and Board members.
• A new share issue was concluded on March 14, providing the company with SEK 26.8 million before issue expenses. The rights issue was subscribed to around 130.3% and the Board resolved to issue further shares through a targeted issue to meet the great demand.
• On March 21, 258,043 targeted shares were issued to the guarantors who preferred payment in shares. The issue price of SEK 3.59 in the compensation issue was based on the volume-weighted average price of the company’s shares during the rights issue subscription period, which ran from February 23, 2023 through March 9, 2023.
• On March 28, preliminary results were published showing that Ekobot can help reduce storage losses in Swedish onion farming.
• The company held its annual general meeting on May 12, 2023.
• On May 16, the Board announced that Erik Jonuks is leaving his position as CEO for Ekobot AB (publ) and will step down during the fall of 2023.
• On May 23, the company announced that it had signed a letter of intent with AllagBots Nordic APS for the sale of robots in Denmark and Norway.
• On June 27, the Board announced the appointment of Jonas Eklind as the company’s new CEO. Jonas will succeed Erik Jonuks, the company’s previous CEO, and take up his position on September 1, 2023. Jonas Eklind’s extensive leadership experience in technology-based industrial companies undergoing strong growth makes him an excellent fit as Ekobot’s new CEO. His successful background demonstrates his ability to create growth in companies from research-based ideas to profitable operations.
• Ekobot presented an updated strategy with a focus on sales through distributors with the goal of achieving a market share of 5 percent within the EU by 2030.
• On September 1, Jonas Eklind took up his position as the new CEO for the company; Eklind succeeds the company’s previous CEO, Erik Jonuks.

Significant events after the end of the period

• On January 3, 2024, the company announced an extraordinary general meeting for January 22, 2024, to address a proposal to authorize the Board to resolve on the issue of new shares, warrants and convertibles and to increase the company’s share capital by issuing new shares, warrants and convertibles within the limits permitted by the Articles of Association.
• On January 15, 2024, the company announced the conclusion of a loan in the amount of SEK 3.0 million. The financing ensures the company’s continued operation until a long-term financing solution can be put in place during the first quarter, 2024. It is intended that the loan facility be converted to binding subscription commitments in the future capitalization. Meanwhile, the company is awaiting the disbursement of a SEK 1.8 million grant from the Swedish Agricultural Agency for a project that was concluded in 2023.
• The company held an extraordinary general meeting on January 22, 2024. The meeting authorized the Board to resolve on the issue of new shares, warrants and convertible within the limits permitted from time to time by the Articles of Association.
• On January 25, the company announced that it had concluded an exclusive agreement with Homburg Holland regarding regional sales of Ekobot’s WEAI autonomous robot system for mechanical weed control.
• On January 30, the company announced that Ekobot has entered into a collaboration with Väderstad aimed at developing a system for real-time evaluation of the effects of a seeder with the aid of vision technology and artificial intelligence (AI).
• The board of directors of Ekobot resolves on February 14, with relying on the authorization from the extraordinary general meeting on January 22, 2024, to carry out a new issue of a maximum of 30,492,634 shares with preferential rights for existing shareholders. Upon full subscription in the Rights Issue, the company will receive issue proceeds of approximately SEK 18.3 million before issue costs.
• On February 21, the company announces that Ekobot has entered into a distributor agreement with Homburg Belgium regarding Belgium. The agreement grants Homburg Belgium an exclusive right to sell Ekobot's autonomous robotic systems WEAI for mechanical weed control in the region.
• The company announces that they are starting a collaboration with AutoAgri with the aim to adapt the Ekobot intelligent weeding tool to the AutoAgri autonomous implement carrier. The initial goal is to setup a commercial demonstration with a Norwegian customer during the third quarter of 2024. 

The full report is attached as PDF and is available on the company’s website: Ekobot

The information was submitted, through the care of the contact person below, for publication on February 27, 2024 at 08:00 CET.