Listings: First North, Sweden
Stock price at time of publication: 3,24 SEK
ESGFIRE average price: 2,5 SEK *
Industry: Agtech & Farming Robotics
* Only applies if ESGFIRE is assigned shares in the ongoing share issue.
We have signed a guarantee commitment with the innovative agtech robotics company Ekobot. Upon being assigned shares Ekobot will take place as our 13th current portfolio company.
Ekobot has developed a farming robot which removes weeds and analys data on crops which means farmers can save up to 20 % on cost reductions. The company focuses on crops that are hard to grow and where fighting weeds can be difficult. Especially , but not exclusivelt, ecological farms benefits from the solution since they typically do not use herbicide / pesticide. The main market focus is Sweden, Netherlands and Denmark. Trials have shown to give an increased crop yield by between 5-20 % which according to the company is unique for the industry.
The main take away point with Ekobot is that they have already proven that their system works on the hardest possible crops, and from a valuation standpoint the company is valued at basically nothing compared to its competitors.
We believe it wise to sign up for shares in the current ongoing share issue for the price of 2,5 SEK / share which will , upon fully subscribed, add 21,5 million SEK / 2.o6 million USD to the treasury before share issue costs. There is a possible overallotment of 5,4 million SEK / 0,52 million USD. The share issue is guaranteed up to 85 %.
Ekobot recently signed its first customer agreement with a Swedish organic grower. The client ” is one of Sweden’s leading vegetable growers with approx. 100 ha of cultivation and an estimated need for approx. 10 robot units”. The robots are typically sold using a 3 year lease (900 000 SEK) and with 10 robots it would mean revenues of 3 million SEK.
At a post money valuation of 48,4 million SEK (based on a share price of 3,77 SEK) we think the company is attractively valued. The current financial outlook is the sale of 24 robots for 2024 indicate revenues of 22 million SEK.
By comparison for this valuation we would like to highlight two competitors such as Farmdroid which has an estimated valuation of 300-500 Million SEK and Naio Technologies valued at approximately 1500-2000 million SEK. Naio recently raised 330 million SEK.
Finally Ekobot fairly recently (October 2022) landed a strategic investor in Navus ventures which subscribed for ashare issue at 5 sek per share adding 2,4 million SEK at a 48 % premium . Navus ventures have also committed to 5,4 million SEK in the current 21,5 million SEK share issue which we see as a very strong sign of confidence in Ekobot.
All in all we find Ekobot a very compelling risk reward case which complements the ESGFIRE portfolio very well .
We own shares of this company personally.
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