22/06/23

XTPL sets issue price of series V shares at PLN 133

The offer of series V shares of the global supplier of ground-breaking nanoprinting solutions for the global electronics market has attracted strong interest from eligible investors – the issue price of one share was set at PLN 133.00. The value of the offer will be PLN 36.6 million. XTPL is issuing 275,000 series V ordinary bearer shares.

“Following the roadshow, the Management Board decided to offer all 275,000 series V shares at the issue price of PLN 133.00, this is a discount of 1.5% on the volume-weighted average price for the 30-day period before the general meeting approving the share issue. We are determined to use the offer proceeds and our hard work to carry out a PLN 60 million worth of investment plan in 2023–2026, and in this way continue the robust development of all three of our business lines, with a strong focus on projects geared towards industrial implementation, which will be the key accelerator for further growth of the Company and its performance. By 2026, we intend to achieve revenues of PLN 100 million from the sale of products and services, meaning a 10-fold increase versus last year. And we estimate the potential of all our nine industrial projects we are working on at approx. PLN 400 million in average annual revenues. Three of those projects are already at the stage of building a prototype industrial device with our printing module. This means that we are edging closer to the final tests of our technology in its target environment – on industrial lines of the largest next generation electronics manufacturers” says Filip Granek, CEO of XTPL.

In May this year, XTPL announced its plan to increase revenues 10 times to PLN 100 million by 2026. The potential average annual revenues from all nine industrial projects being developed at present is estimated at approx. PLN 400 million. To achieve this ambition, XTPL intends to make investments of approx. PLN 60 million in 2023-2026 aimed at strengthening and accelerating the Company’s development, e.g. by increasing its production capacity, supporting sales activities and stepping up its R&D efforts. To fund the investments planned, XTPL intends to use the proceeds from the issue of shares, and the remaining part of the financing is to come mainly from equity generated in the course of operating activities, from grants and debt financing.

“In the years 2023-2026, we are going to implement an investment program of PLN 60 million, which will allow us to effectively exploit our commercial potential and manage the expected future revenue streams. We are happy that there is a place in Poland for deep tech companies that have the aspirations and prospects to become global brands. The current economic and business backdrop is also positive. By that I mean, for example, the EU’s ambitious goals relating to the semiconductor industry – an increase from 10% to 20% in the global production of semiconductors in Europe on the back of the massive cash flows of EUR 43 billion to foundries (European Chips Act). In addition, we favorably view last week’s decision by Intel to build a USD 4.6 billion worth of Semiconductor Integration and Testing Facility in Miękinia, a town located about 12 km in a straight line from our headquarters. We are positive that the place and time are right for XTPL business, and there are many years of continued growth and – I believe – numerous successes ahead of us, which will benefit the existing and new investors who have decided to acquire the shares we offer” adds Jacek Olszański, CFO of XTPL.

XTPL’s business model is based on three complementary business lines with a high potential to generate revenue streams, supported by R&D, and IP protection to maintain a long-term competitive edge. These are printing modules for industrial implementation on the production lines of global manufacturers of electronics, the Delta Printing System prototyping devices, and conductive nanoinks. The Company currently has 4 advanced projects geared towards industrial implementation of its technology. They cover all 3 sectors strategic for the Company: advanced PCBs, semiconductors and displays. The Company’s end customers are global entities responsible for the production of next generation electronics, including a leading semiconductor manufacturer from Taiwan, one of the world’s largest producers of FPDs (Flat Panel Displays) from South Korea and a top manufacturer of industrial machines from the United States, listed on the Nasdaq 100 index.

In 2022, XTPL achieved revenues of PLN 12.8 million, nearly three times more year on year, with revenues from the sale of products and services surging to more than PLN 10.0 million from PLN 2.1 million achieved in 2021, which is a nearly fivefold growth. This means an almost 80% share in the total commercial sales revenues, with the rest being represented by grants. In the whole of 2022, EBITDA, adjusted for the cost of the incentive scheme, was positive at PLN 0.4 million, growing by PLN 4.9 million year on year. With those results, net loss for 2022 was reduced significantly by nearly PLN 4.5 million to PLN -2.1 million compared to PLN -5.7 million in 2021. Net cash flows were positive at PLN 1.5 million, up PLN 7.3 million YoY. Operating cash flows were PLN 4.7 million, up PLN 8.5 million YoY. The Company’s cash position as at December 31, 2022 increased to PLN 6.0 million.

Since its inception, XTPL has been operating a carefully developed industrial and intellectual property protection policy, having 7 patents granted and a total of 26 patent applications filed from September 2019 to June 2023.

In 2022, the value of the rapidly growing printed electronics market was USD 51 billion (+8% YoY), while in 2026 it is forecast to grow to USD 66 billion (source: IDTechEx). This means an increase in the market value at a CAGR of 7% in 2022–2026.

In the currently ongoing process of offering of series V shares, the Company is supported by cc group – IR Advisor and Financial Advisor, while Trigon Dom Maklerski S.A. acts as the Investment Company and Book Manager.

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