November 10, 2020, Poland3D printingMachine manufacturer Zortrax has signed a reverse merger (backdoor) agreement with optical medical company Corelens to become a public company.
All Zortrax assets will be transferred to Corelens. In exchange, Corelens will issue 97% of the shares to Zortrax shareholders. In addition to this transaction enabling Zortrax to expand its medical applications, the combined Zortrax will be publicly listed on the NewConnect Stock Exchange with a market capitalization (PLN) of 150 million zlotys (approximately 260 million yuan).
Mariusz Babula, Vice President of the Zortrax Management Committee, said: “A clear development strategy and a favorable market environment enable us to look optimistically into the future and assume the dynamic growth of sales of solutions in various industries. We have commissioned a valuation of Zortrax to determine our company. The value is 150 million zlotys.”
Zortrax merger opportunities
Zortrax is headquartered in Olsztyn, Poland, specializing in the manufacture of desktops3D printingIt also provides customers with various post-processing, materials and software solutions. At present, they sell products through a network of more than 130 partners who conduct business in 90 countries, in industries ranging from automobiles, construction to textiles.
In July 2019, Zortrax provided many prototypes of parts for Falectra, Poland’s first electric motorcycle brand. In addition, the German company Lightning Cosplay is using the Zortrax M200 system to make costumes inspired by video games.
Zortrax also light-cured for Inkspire3D printingThe machine has developed a series of biocompatible resins for application in the medical field.
Zortrax has now chosen to merge with clinical company Corelens. Through this transaction, Zortrax can raise a large amount of funds through stocks on the stock exchange.
The details behind the Zortrax reverse merger transaction
Corelens will issue at least 111,937,500 shares to Zortrax investors at a set price of 1.34 zloty, which is equivalent to 97% of the business. In exchange for each Zortrax share, 15 new Corelens shares will be issued to company shareholders to ensure that they retain the same company ratio as before.
As part of the preparations for listing, Zortrax has commissioned others to evaluate the assets, which are estimated to be worth about 150 million zlotys or (about 260 million yuan).
This transaction enables Zortrax to3D printingIncrease sales in the market and cooperate more closely with Corelens’ clinically experienced team. However, despite the opportunities brought about by the merger, it was also an inappropriate timing for Zortrax. Zortrax reported a 16% revenue decline in its latest financial data.
A good time to go public?
Although Zortrax has not yet been publicly listed and has no obligation to publish complete data, it has already reported 20.4 million zlotys (approximately 35.62 million RMB) in revenue for the first seven months of 2020. This figure is a decrease of 3.9 million zlotys from the income of 24.3 million zlotys (approximately 42.43 million yuan) generated in the same period in 2019.
Zortrax’s financial situation was also negatively affected by some one-off write-offs required to merge with Corelens. For example, Zortrax’s tax assets needed to be formally dissolved, which resulted in a loss of approximately 2.9 million zlotys on the company’s balance sheet. There is no impact on available cash flow.
In general, for the fiscal year ending July 31, 2020, Zortrax reported a net loss of 6.1 million zlotys (10.65 million yuan), which was higher than the -3.3 million zlotys (-5.76 million yuan) announced in the same period in 2019. RMB) less than 2.8 million zlotys (4.9 million RMB). Nevertheless, the company’s available cash was slightly more than the same period last year, at 3.4 million zlotys (593 million yuan).
According to Babula, the COVID-19 pandemic has had too much impact on Chinese suppliers and they were forced to close down earlier this year. “One of Zortrax’s main suppliers is from China, and they have to temporarily stop production3D printingMachine-specific parts. “
“This in turn caused Zortrax’s inability to complete all orders, resulting in reduced sales. Currently, the epidemic has not affected Zortrax’s activities, and cooperation with partners from Asia is also proceeding smoothly.”
(Editor in charge: admin)
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