OTI Greentech AG (German Securities Identification Number A0HNE8) has sold all its business units in Norway and West Africa to Visionaire Invest AS (cf also Ad hoc Disclosure of October 30, 2017). Following the sale, OTI Greentech will in future focus on the operationally profitable business units OTI Greentech Technical Solutions, Uniservice Unisafe as well as the joint venture with KMI Cleaning Solutions.
As a result of the sale, the Board of Executive Directors of OTI Greentech AG informs that according to its best judgment it has to be expected that with the conclusion of the sale a loss of more than half of the share capital within the meaning of § 92 para 1 AktG (German Stock Corporation Act) will have occurred.
The main reason is the loss resulting from the write-down of financial investments in the amount of around EUR 14.7 million resulting from the sale of the business units. In accordance with the statutory requirements, the Board of Executive Directors of OTI Greentech AG will immediately convene a General Meeting and inform it about the loss in accordance with § 92 para 1 AktG.
Information and explanation by the issuer about this communication:
As a result of the agreement which has just been entered into, OTI Greentech has sold its loss-making business units Visionaire Energy AS, RADA Engineering & Consulting Bergen AS, VTT Maritime AS as well as the West African subsidiary, VTT Maritime West Africa Ltd., to Visionaire Invest AS, a shareholder of OTI Greentech.
After the sale, OTI Greentech will have a clear orientation towards its core business with eco-friendly cleaning products, such as the patented ECOSOLUT product family for use on land and in the shipping industry. Moreover, significant cost savings can be achieved in the parent company due to the leaner corporate structure.
Pursuant to the sale and purchase agreement, the buyer has waived the repayment of a loan granted to OTI Greentech including interest in a total amount of approximately EUR 1.5 million. In addition, Visionaire Invest AS will take over all the liabilities of the transferred business units totalling around EUR 2.5 million. In return, OTI Greentech has extended loans granted to Visionaire Energy AS in the amount of around EUR 900,000 until 2021. Johnny Christiansen, Member of the Board of Executive Directors, will cease to be a member of the Board of Executive Directors of OTI Greentech from midnight today.
As a result of the sale, the group debt of the OTI Greentech Group will be decreased to around EUR 4.5 million (including the convertible bond in the amount of EUR 2.9 million).