| Year-end valuation 2014 of the ProgressNow! invest AG share and the restructuring of the company - 29.01.2015
Year-end valuation 2014: The board of directors of ProgressNow! invest AG announce that the net asset value of the ProgressNow! invest AG share per 31st December 2014 after the year end valuation of investments amounted to CHF 3.94 per share (preliminary unaudited figure).
ProgressNow! invest AG expects a loss for the year of CHF 2.15 Mio (CHF 3.06 per share).
The loss is mainly due to the new valuation of the shares in Velico Medical, Inc, who are carrying out a financing round. On the basis of the currently expected conditions, the board of directors has reduced the valuation of the Velico share from USD 0.50 to USD 0.30 in accordance with the company’s valuation guidelines. The bankruptcy of portfolio company Oceanlinx Ltd and further adjustments to the amount due from the sale of Cadent Holdings in 2011 have also contributed to the loss.
In addition operating expenses have increased by nearly 30% compared to prior year as a result of the planned transaction „Reverse Takeover“ with Conicor Medical AG. As a result of changed circumstances a successful conclusion of the transaction appeared unlikely and it was called off in November 2014.
Restructuring the company: The board of directors of ProgressNow! invest AG announce that at the ordinary general meeting to take place on 9. April 2015 they will propose a restructuring of the company.
At the ordinary general meeting which has been brought forward to 9. April 2015, the board of directors will propose a restructuring of the company by the reduction in the nominal share value and a subsequent capital increase. The board of directors propose a minimum capital increase of CHF 2 Mio, but would recommend an increase of at least CHF 5 Mio. An amount CHF 1 Mio. would be required to cover restructuring costs and operating expenses for ca. 2 years. The rest of the capital increase will be used by the board of directors for a further investment in Velico Medical, Inc.