Company Announcement No. 4/2007
Copenhagen, Denmark
April 26, 2007
Financial results for Q1 2007
Copenhagen, Denmark, April 26, 2007: Olicom A/S, which trade on OMX Nordic
Exchange in Copenhagen, today announced its financial results for Q1 2007.
As also announced in the Company's annual report for 2006, the Company has
entered an agreement with ADR NR. 1904 ApS (“ADR”) on a share issue and the
acquisition from ADR of a real estate portfolio. The agreement is conditional
upon approval by the shareholders of the terms of the share issue. Under the
agreement ADR will secure the funding of Olicom's operations until the
completion of the share issue. After the planned share issue Olicom's future
main activity will be real estate investments. The Company's existing IT
venture capital investments are expected to be held until exits are achieved.
The terms of the share issue, which will be presented for approval at an
extraordinary shareholders' meeting, are under preparation. As announced in the
Company's Stock Exchange Announcement no. 22/2006 (December 7, 2006) it is
expected, however, that the share issue will take place at a price per share,
which does not substantially exceed the nominal value per share of DKK 0.25. It
is further expected that the size of the share issue will be DKK 175 - 200
million and that DKK 75 - 100 million of the proceeds will be used for the
acquisition from ADR of a real estate portfolio comprising 6 - 8 business
properties predominantly located in Denmark. The gross value of the properties
is expected to be DKK 225 - 275 million. The price of the properties will be
determined based on valuations provided by independent experts. The Company has
started preparing the prospectus for the share issue and expects to complete
the issue during the first half-year of 2007.
The financial statements for the period January 1 - March 31, 2007, which have
been prepared under the assumption that the abovementioned plan is carried
through, show a loss of DKK 4.4 million. The shareholders' equity as of March
31, 2007, is negative by DKK 7.7 million.
Through the co-operation with IVS A/S the Company holds shares in LH Comlog
A/S, Hymite A/S, and Scalado AB. All of the three portfolio companies have
during the year performed in accordance with the Company's expectations. During
the quarter Scalado raised additional capital from its existing shareholders
and Olicom subscribed its proportional share at an amount of DKK 1.3 million.
Provided that the shareholders' meeting in Olicom approves the preconditions
for implementing the agreement with ADR, the Company's future activities will
predominantly be real-estate investments. In 2007 the Company expects to incur
administrative and financial costs of DKK 8 - 10 million. In addition the
Company's result may be impacted by non-recurrent costs related to the
implementation of the new business plan and by losses or gains resulting from
write-downs and write-ups of the value of the existing investment portfolio.
The result of the new investment activities is expected to be positive, but is
not expected to be significant to the 2007 result as such investments will only
impact the last six months of the year.
The Board of Directors and Management have today considered and approved the
Interim Report for the period January 1 - March 31, 2007 for Olicom A/S.
The Interim Report, which has not been audited, has been drawn up in accordance
with the provisions in IFRS and additional provisions for companies listed on
OMX Nordic Exchange in Copenhagen. The accounting policies applied are
considered as appropriate so that the Interim Report under the stated
assumptions gives a true and fair view of Olicom A/S' assets, liabilities and
financial position as of March 31, 2007 and of the Group's results for the
period January 1 - March 31, 2007.
Forward Looking Statements
This announcement contains forward looking statements, which are subject to
risks and uncertainties, which may cause actual results to differ from the
anticipated results.
Attachments
Summary of Income Statement and Balance Sheet follow.
About Olicom
Further information about Olicom can be found at www.olicom.com or obtained by
contacting CEO Boje Rinhart tel. +45 4527 0000 or e-mail bri@olicom.com.
To read this announcement in its full wording please se attached file
