OrganoClick: Q2 in line with PW, rights issue announced - ABG
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OrganoClick: Q2 in line with PW, rights issue announced - ABG

Q2 figures in line with pre-announcement
The Q2 figures were in line with the profit warning issued on 11 July, i.e. sales of SEK 30m (-23% y-o-y) and an EBIT of SEK -4.7m (-0.1m). FW sales were, as pre-announced in the PW, SEK 10.6m (-34% y-o-y). Sales for GC&MP and NW&FT were also weaker in the quarter, amounting to SEK 13.2m (vs. ABGSCe 16m, -9% y-o-y) and 6m (vs. ABGSCe 8m, -25% y-o-y), respectively.

Rights issue of SEK 20m
Yesterday evening, OrganoClick announced its intention to launch a rights issue of SEK 20m at a subscription price of SEK 1.76 per share — a discount of ~5% to yesterday's closing price. The issue is 100% guaranteed by the company's three largest shareholders. For existing shareholders, the issue will result in a dilution effect of approximately 10.8% of the Company's capital and votes upon full subscription (of which the increase attributable to the Directed Issue amounts to ~0.3%).

Outlook
In the near term, financing has been secured through a SEK 10m shareholder loan (booked in Q3) and a proposed rights issue of SEK 20 million. However, we believe that to mitigate long-term liquidity risk, the company must demonstrate improved profitability. The share has returned -25% L3M (vs. peer median +14% and OMXSALLS+10%), and is currently trading at 2.2x-1.6x '25e-'27e EV/Sales on our pre-report estimates vs. the peer median of 4.4x-2.5x.
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