2024-09-12 12:05:03
Trondheim, NorwaySept 12 2024Reference is made to the previous communication by CrayoNano AS ("CrayoNano" or the "Company") on NOTC (www.notc.no) relating to its private placement, AGM and subsequent repair offering in June July 2024 to raise short-term liquidity to pursue strategic opportunities.
The Company has been in a growth mode and operates in the UV-C LED component market, where products are primarily used in disinfection applications. CrayoNano has quarterly reported sales leads, design-in and revenue targets and announced through the website and social media design-wins and contracts in addition to insight into our backlog.
To date, CrayoNano is executing on the revenue plan with a backlog and accounts receivables according to previously presented sum of contracts. During the past few weeks, CrayoNano has experienced customer defaults on certain June/July shipments, partly due to customer non-payment and partly due to bankruptcy, leaving a payment shortfall.
Although these customers represent a subset of current frame contracts of the Company, these customers represent a substantial revenue and profit contribution to CrayoNano in the short term, and the non-payment from these customers has resulted in an immediate short-term liquidity situation. The company has sales liens in the products shipped to customers and have taken immediate action to pursue these payments with assistance of legal advisors. These processes do however at this point in time have unclear outcome with regard to the amounts which can be retrieved.
We also observe what we believe is a significant consolidation and contraction in the market for UV-C LED components, both in the supply-chain, with system integrators (CrayoNanos customers) and their end-customers. There has also been a significant price pressure from suppliers resulting in fewer-than-expected orders.
With this insight into the market and through our customer reach, the Board of Directors, management and advisors have worked extensively since June to achieve both short and long-term viable strategic alternatives. To control cost, the company has right-sized the organization, renegotiated contracts and optimized running costs.
The Board of Directors has renewed belief in the UV-C LED market as an attractive market with opportunities through continued investment in R&D and potential consolidation of suppliers and the supply-chain.
On the basis of a revised business plan with the market insight taken into consideration, the Company will reach out to its shareholders and other relevant stakeholders and continue to reach out to potential investors and partners to explore opportunities for the short and long-term liquidity needs in order to execute the revised business plan. The Company will update the market on the developments of the above-mentioned initiatives as soon as possible. It is highly uncertain if the above-mentioned activities will succeed and there is a risk that there is no basis for continued operation.
For further information, please contact:
Jo Uthus, Chairman, jo.uthus@crayonano.com
Rune Rinnan, Vice-Chairman, rune.rinnan@ntechgroup.no
Thomas Dobbertin, CEO, thomas.dobbertin@crayonano.com
About CrayoNano AS
CrayoNano develops and manufactures nanomaterials-based semiconductor components using proprietary technologies. Headquartered in Trondheim, Norway with a branch office in Taiwan, CrayoNano supports our customers with global sales representatives and distributors in EMEA, APAC and Americas. CrayoNanos innovative semiconductor components advance global solutions in health and safety, water purification, consumer, and industrial applications, and more. CrayoNano is registered on Euronext OTC in Norway under the ticker “CNANO”.