STOCKHOLM, SWEDEN/ACCESSWIRE/February 16, 2022/ Re:NewCell AB (publ) (FRA:6QP) (STO:RENEW)

Decision to initiate early capacity expansion ahead of schedule and review corporate operational and financial objectives due to increased customer interest

October-December
Financial information

• Net turnover for the period amounted to SEK 1,313,000 (232).

• The loss after financial items amounted to -66,224 thousand SEK (-21,071).

• Cash flow from operating activities amounted to -52,711 thousand SEK (-15,994).

• Cash flow from investing activities was -93,240 thousand SEK (-29,492).

• Earnings per share before and after dilution amount to -2.2 SEK (-0.9).

• Net cash* amounted to -254,867 thousand SEK (-711,996).

*A negative number means total cash exceeds total interest-bearing debt.

Significant events of the interim period

Other events

• On October 19, Renewcell signed a letter of intent with Kelheim Fibers GmbH for the production of up to 10,000 metric tons of Circulose®-based fibers.

• During the month of October, the Company received the first loan disbursements corresponding to approximately SEK 320 million.

• At the beginning of December 2021, all Circulose® dissolving pulp production at Renewcell’s Kristinehamn plant is certified as 100% recycled according to the Recycled Claim Standard (RCS).

• In December, Renewcell signed multi-year purchase agreements with three different European textile sorters – SOEX in Germany, Texaid in Switzerland and Sysav in Sweden.

January-December
Financial information

• Net sales for the period amounted to SEK 2,778 thousand (1,453).

• The loss after financial items amounted to -133,430 thousand SEK (-68,722).

• Cash flow from operating activities amounted to -117,695 thousand SEK (-54,897).

• Cash flow from investing activities was -312,174 thousand SEK (-30,195).

• Earnings per share before and after dilution amount to -4.3 SEK (-3.3).

Significant events after the interim period

The story continues

• Due to increased customer interest, the company decided to launch a production capacity expansion of Renewcell 1 (Ortviken) from 60,000 to 120,000 metric tonnes ahead of plan. The company is also launching an assessment of whether to increase its operational targets. BNP Paribas and Carnegie have been retained by the company to explore the financing necessary to increase the operational objectives.

Other events after the interim period

• On January 12, 2022, the new Levi’s version of Levi’s released the classic 501 with the name “Levi’s 501® Original Designed for Circularity” using a blend of Circulose® and organic cotton.

• In cooperation with China’s leading viscose filament yarn manufacturer Yibin Hiest, Renewcell has successfully used 100% Circulose® pulp for the production of viscose filament yarn on an industrial scale, opening up other segments of products for 100% Circulose® fibers among sportswear, which replaces for polyester filaments and among luxury products such as silk replacement.

CEO Comments
Decision to initiate expansion and evaluate identified targets due to increased customer interest
As we mark one year since the start of the project, I can say with pleasure that despite a very tight schedule, we are still on track with our initial planning with the establishment of Renewcell 1 in Ortviken. The assembly of our 17 ton roller presses and the arrival of a large number of new employees during the fourth quarter were two of the clearest signs that we are maintaining a high rate of progress.

Like companies around the world, we have encountered challenges in the timely delivery of construction materials and key components, as well as increased shipping costs. I am grateful that our careful work to minimize risk at the start of the project now gives us the tools to be able to largely fend off cost increases. We also managed to balance short-term cost increases with long-term savings to stay within Renewcell 1’s budget as a whole.

Our team in the Kristinehamn demonstration facility achieved new records during the quarter. Record 24 hour, week, month and quarter productions are reflected in our best production numbers yet. However, the main focus of operations at the Kristinehamn facility remains to carry out tests to ensure that the start-up of Renewcell 1 (Ortviken) goes as smoothly as possible. We have signed new cooperation agreements which lay the foundations for a European “closed loop” for textiles. This type of regional closed loop is highly sought after by fashion brands and policy makers. On the supplier side, we entered into new long-term collaborations with three European consumer textile sorters.

Over the past year, the market has shown a strong increase in interest in Circulose®. We have a proven ability to sell industrial quantities to our customers for commercial fiber production and testing. In addition to our letter of intent with German company Kelheim Fibers for the production of up to 10,000 metric tons of Circulose®-based fibers per year, business collaboration dialogues with other fiber producers and brands have intensified.

Due to increased customer interest, we decided to launch the expansion from 60,000 to 120,000 metric tons ahead of plan. Additionally, we are reviewing whether to advance the 360,000 metric ton capacity target from 2030 to already 2025. BNP Paribas and Carnegie have been retained by the company to explore funding for the target increase. operational.

In 2022, Renewcell will lead the global textile industry into a new era of large-scale circularity. I am proud that in 2021, step by step, we have achieved a very ambitious, and sometimes under pressure, plan that has brought us to where we are today. I would like to thank our 110 committed, knowledgeable and flexible employees for helping our customers move forward in bringing Circulose® garments to market, supporting and finding ways to solve problems while developing and implementing our culture. care and progress. “.

Stockholm, February 2022
Patrik Lundström – CEO

contacts

Patrik Lundstrom
CEO
[email protected]
+46 76 183 47 17

Hugo Small
CFO
[email protected]
+46 70 7787196

About Renewcell

Founded by innovators at Stockholm’s KTH Royal Institute of Technology in 2012, Re:NewCell AB (publ) (“Renewcell”) is a Swedish-based multi-award winning sustainable technology company. The company’s vision is to inspire an industrial evolution towards a sustainable world by producing high quality materials from recycled textiles.

Thanks to its patented process, Renewcell is able to recycle cellulosic textile waste, such as cotton clothing, by transforming it into a new virgin material called Circulose®. Fast Company named Renewcell one of the World’s Most Innovative Companies of 2021. Circulose® was also on TIME magazine’s 2020 Top 100 Inventions list.

Renewcell is a publicly traded company whose shares trade on the Nasdaq First North Premier Growth Market under the ticker symbol RENEW and ISIN code SE0014960431. FNCA Sweden AB is Renewcell’s certified advisor, +46(0)8-528 00 399, [email protected]

This information is information that Re:NewCell AB (publ) is required to make public in accordance with the EU Market Abuse Regulation. The information was submitted for publication, through the contact persons listed above, on 2022-02-16 08:00 CET.

Attachments

Renewcell 2021 Year End Report

THE SOURCE: Re:NewCell AB (published)

See the source version on accesswire.com:
https://www.accesswire.com/689026/Year-end-Report-2021