SOWITEC group calls for a voting without meeting on, among other things, a prolongation of the bond 2018/2023 by three years

Sonnenbühl, 25 October 2023 – SOWITEC group GmbH (SOWITEC) is calling on the holders of its bond 2018/2023 (ISIN: DE000A2NBZ21), which is still outstanding with EUR 7.634 million, to a voting without meeting. The proposed resolutions will include the prolongation of the bond maturing on 8 November 2023 by three years, i.e. until 8 November 2026, and, in connection therewith, the waiver by the bondholders of their right to exercise termination rights as well as the appointment of a common representative of the bondholders, who is also to be granted certain authorizations to make decisions on behalf of the bondholders.

Despite a positive first half of 2023 with consolidated sales of EUR 12.8 million (previous year: EUR 8.6 million) and a consolidated result for the period of EUR 7.9 million (previous year: EUR -0.2 million), SOWITEC’s liquidity situation is currently extremely tight in view of the bond 2018/2023 with EUR 7.634 million outstanding. The reason for this is, on the one hand, existing uncertainties about the timely payment of purchase price portions for projects in Germany and Mexico totaling EUR 2.6 million, which SOWITEC had planned to receive at an earlier point in time. On the other hand, due to the currently unusually low electricity price level in Brazil, there were delays in project realizations and project negotiations, which led to unforeseeable postponements of sales revenues of approximately EUR 12 million since September 2023. In addition, incoming payments of around EUR 3.5 million have been postponed in Colombia since October 2023, as grid expansion there was delayed by around twelve months due to the grid operators, meaning that contractually secured projects could not be implemented as planned.

From today’s perspective, the Company is therefore not in a position to repay the bond 2018/2023 on the maturity date. During the voting period, which is scheduled to run from 11 November 2023 at 0:00 hours to 13 November 2023 at 24:00 hours, the holders of the bond 2018/2023 have the opportunity to cast their votes in writing. A quorum of 50% of the outstanding bonds is required for effective approval of the Company’s proposed resolutions.

The complete invitation to vote is expected to be available on 27 October 2023 in the German Federal Gazette (Bundesanzeiger) and on the Company’s website at www.sowitec.com/de/investor.

SOWITEC group GmbH
Frank Hummel
CEO

Contact:
Frank Ostermair, Linh Chung
Better Orange IR & HV AG
089/8896906-25
linh.chung@better-orange.de