Following recent developments and increased shareholder enquiries, the Board emphasizes that the company’s business continues to perform according to plan in terms of revenue, profit, and cash flow. Due to the recent days of sharp decline in the share price, the Board has reassessed the value of a share buyback program and intends to convene an Extraordinary General Meeting to propose a synthetic buyback program of up to SEK 250 million, however, not exceeding 10 % of the total outstanding shares in the company. The company’s cash position is currently approximately SEK 350 million.
Intellego has received many questions from shareholders and investors in recent days due to the significant downturn in the share price. The Board would like to assure all shareholders that the business is developing as planned in terms of revenue, profit and cash flow.
In the coming period, Intellego is expected to receive approximately SEK 500 million from existing accounts receivable. Out of the SEK 500 million which Intellego currently has in accounts receivable, approximately SEK 440 million, including the larger receivables, has been counterparty verified. This means that the customers themselves have independently confirmed the order and the debt directly to external regulatory parties, which operate independently from Intellego, to reconfirm that the receivables are correct and will be paid. Furthermore, Intellego also has some of these receivables credit assured. The company is in the process of securing counterparty verifications for the remaining approximately SEK 60 million in accounts receivable.
One of the questions the company often gets, and which has been responded to in the past, is how Intellego recognizes revenue. Intellego follows the IFRS accounting regulations which means that Intellego recognizes revenue when the risk of the goods has been transferred to the buyer.
In addition to the liquidity situation, Intellego sees a solid order inflow and, as Intellego has previously communicated, the CEO and Chairman of the Board are currently negotiating orders in China with a total potential value of several hundred million SEK.
Due to recent developments, the Board has reassessed the value of a share buyback program and will shortly convene an Extraordinary General Meeting. Considering the expected cash flow development and the current cash position, the Board intends to propose a synthetic share buyback program of up to SEK 250 million. The company’s cash position is currently approximately SEK 350 million.
The buyback program will not affect the Company’s financial goals and acquisition strategy, communicated in the Q3 report.