ÄNGELHOLM, Sweden, April 18, 2023 /PRNewswire/ —
MANAGEMENT REPORT
Information about the business
OXE Marine AB (publ) was formed in 2012 and after several years of development has developed a diesel outboard for the marine market. The head office is located in Ängelholm, Sweden. OXE Marine AB is listed on Nasdaq First North Growth Market, ISIN SE0009888613. The global outboard market has long been dominated by gasoline engines, but with a diesel engine you get a stronger and, above all, a more fuel-efficient engine.
Several attempts have been made to develop outboard engines for diesel fuel, but the difficulty lies in developing a sufficiently strong design for power transmission between the engine and the propeller. OXE Marine’s outboard engine, OXE Diesel, is the first diesel outboard that is capable of replacing the well-established gasoline outboards in the higher power levels, in commercial and governmental operations. The engine is a modular platform that has been configured for a horizontally mounted engine, unlike traditional outboards that have vertical engine installations. OXE Marine’s unique solution has led to great international demand for the Company’s engines. Among other things, in 2015 the North Atlantic Treaty Organisation (“NATO”) introduced a directive, Single Fuel, which stipulates that all NATO equipment must be run on diesel if this is an available alternative in the market.
Significant events during the financial year
OXE Marine AB (the “Company”) announced the following significant events during the year:
The board of directors of the Company convened an extraordinary general meeting on 16 February 2022 and proposed inter alia that the general meeting resolves to issue new shares to Power Sports Plus, LLC, as payment for the shares in OXE Marine Inc and OXE Marine Manufacturing Inc.
The Company initiated a written procedure to amend and waive certain terms in its up to MSEK 200 bonds. The proposed amendments to the Bond Terms mean that (i) the final redemption date for the bonds will be postponed by 24 months to 15 February 2025, (ii) effective from 15 August 2022, 2 percent of the quarterly interest will be paid in cash to the bondholders and the remaining interest will be quarterly compounded and added to the nominal amount of the bonds, (iii) the US subsidiaries will be entitled to enter into a credit facility agreement of up to USD 5 m, secured by collateral in the US Subsidiaries’ inventory and (iv) OXE is allowed to create a secondary pledge over its business mortgages and over the shares in the US Subsidiaries in favour of the EIB. The EIB’s Tranche A loan of EUR 4 m will also be extended by 6 months in order to become repayable after the corporate bonds with a new maturity date of 12 March 2025.
The Company obtained the bondholders’ approval to amend and waive certain terms in its up to SEK 200 m bonds.
The Company completed the acquisition of Diesel Outboards and Outdoor Network Manufacturing as of 16 February 2022.
As a result of the completion of the Transaction, Anders Berg commenced his new role as CEO of the Company as of 16 February 2022. Anders Berg simultaneously stepped down as chair of the board while remaining a member of the board. The board resolved to elect Jonas Wikström as chair of the board until the end of the next annual general meeting.
The Company announced the outcome of incentive program 2022/2025, the Company issued 1,856,492 qualified employee stock options in the new incentive program 2022/2025 and has subscribed for the corresponding number of warrants of series 2022/2025 issued to secure the Company’s delivery of shares in the program. The options have been issued at a price of SEK 0.03 per option and can be used to subscribe for shares at a price of SEK 3.50 per share during a subscription period of 1 month falling 36 months after acquisition of the employee stock options.
The Company implemented biodiesel in all testing, reducing the net CO2 emissions by up to 94 percent compared to gasoline alternatives.
The Company raised SEK 70 m in a directed share issue (SEK 69.8 m after transaction costs).
Future prospects
OXE Marine’s future growth is dependent on the Company developing and producing sustainable products. The Company continues to explore new technologies, including electric and hybrid solutions with the aim to be at the forefront of outboard marine technology. The Company continues to develop an organization that works in a structured and efficient way with quality and innovation. Additionally, with the acquisition of Diesel Outboards (now OXE Marine Inc), OXE strengthened its position in the US market, creating a direct to market model, gaining access to end-user, dealer, governmental and OEM networks. This, in combination with new ongoing development projects, supports management’s assessment that demand will continue to be strong from the market.
NOTE: The English version is a translation of the Swedish version, for any inconsistencies in the translation refer to the Swedish version.
Certified Adviser
FNCA Sweden AB is Certified Adviser for OXE Marine AB (publ). Contact details to FNCA Sweden AB: tel. +46 8 528 00 399, e-mail [email protected].
For further information, please contact:
Anders Berg,
CEO,
[email protected],
+46 70 358 91 55
Jonas Wikström,
Chair of the board,
[email protected],
+46 70 753 65 66
OXE Marine AB (publ) (NASDAQ STO: OXE) has, after several years of development, constructed the OXE Diesel, the world’s first diesel outboard engine in the high-power segment. The Company’s unique patented engine-to-propulsion power transmission solutions have led to high demand for the Company’s engines worldwide.
The following files are available for download:
SOURCE OXE Marine AB
