FOURTH QUARTER – OCTOBER-DECEMBER 2023Turnover amounted to SEK 8,915 thousand (7,840). |
FULL YEAR JANUARY- DECEMBER 2023Turnover amounted to SEK 37,107 thousand (39,369). |
EVENTS DURING THE REPORTING PERIOD JANUARY-DECEMBER 2023
– On February 3rd, Crown Energy acquired 85% of SmarTee S.a.r.l., the parent holding company of AccYouRate Group which focuses on wearable medical technologies, for a consideration of Euros 163 million of which Euros 75 million was paid upon signing. For more information see note 10. – On April 27th the company stated that AccYouRate had taken a step forward in the production of its ‘smart T-shirt’ using printed polymetric ink. – Crown Energy also announced on May 11th that it is withdrawing from the South African Block 2 B licence and returning its equity to the other joint venture partners. – On May 31:st Crown Energy announced the decision to evaluate the conditions for listing the company’s share on Nasdaq First North. Growth Market, Stockholm. The change of listing is planned for mid 2024. – The so called “Rett study” was released. The study showed that significant and beneficial information was gathered using AccYouRate’s technology and product. – During the reporting period Crown Energy received a further $16 million taking the total received amount under the October 2021 Sale and Purchase Agreement to $107 million. |
EVENTS AFTER THE PERIOD’S END
– On 8 February 2024 Crown announced a strategic partnership with KAYA Climate Solutions GmbH, a project developer specializing in nature-based solutions for climate change mitigation in Sub-Saharan Africa. The partnership is described in Note 11, Events after the end of the reporting period.
– The payment schedule regarding the acquisition of the AccYouRate Group and the contingent payment of 10 million Euro payable to the former shareholders of AccYouRate Italy are in relation to the mutual ambitions and goals for the group subject to further commercial discussions. One of the instalments in relation to the acquisition is therefore outstanding and the payment terms regarding the 10 million Euro has been extended to the end of September 2024.
CEO STATEMENT
Dear Shareholders and Investors,
Crown Energy is in a very exciting phase, now getting into the interesting and timely area of climate solutions through the cooperation with KAYA that was announced some weeks ago. KAYA is a project developer in nature-based solutions for climate change mitigation in Sub-Saharan Africa.
With Crown Energys vast experience operating in Angola, together with KAYAs scientific expertise and knowledge, provides the best conditions to commence large scale projects for climate change mitigation, primarily in landscape restoration and nature conservation while also providing co-benefits for local communities.
The projects are designed to provide significant sequestration of CO2, using the natural environment as a tool for carbon capture. This enables us to generate and sell carbon credits on the Voluntary Carbon Market, a market experiencing exponential growth and expected to reach well above 100 billion USD in 2030. Due to our network and well established platform in Angola, Crown is in a unique and favourable position to emerge in the future as a major player in this new, and for the climate, vital green industry. The future sale of carbon credits will not only provide financing for the climate mitigation projects but also valuable revenue streams for Crown.
This project complements our earlier investment in the Health tech sector through AccYouRate. The AccYouRate Group focuses on medical grade wearable technologies and holds various patents focused on advanced and cutting-edge technologies. AccYouRate can produce wearable textiles, currently in the form of a ‘smart T-shirt’ enabling monitoring of the wearer’s bio signals and transmission of those to the cloud, where a comprehensive biomedical database is hosted. This is and can be used for hospitals, in Sports and for example lone workers.
We have also established AccYouRate AI as a technology hub to utilize artificial intelligence for the analysis and extrapolation of medical data, generating actionable insights to extract additional value from the data.
During 2024 we are planning to take material steps through several larger co-operations with different partners that has the potential to provide a large userbase for the AccYouRate ecosystem. So, with these two new ventures Crown Energy is truly moving in a totally new strategic direction of the company, which already started with the divestment of the majority of our Energy assets in 2021 and the subsequent withdrawal from the South African License in May 2023.
The work to transition to Nasdaq First North is ongoing and the aim is to finalise it in the first half of 2024. We have continued to enhance our website for better information access and transparency and hope to provide many exciting news updates during 2024.
For our management services and asset management business in Angola I am pleased to say that the improvement in the market for office and residential rentals in Angola continues firmly. The growth in economic activities in the country and interest from international companies have been important factors in firming up the market. Despite that, because of the depreciation of the Kwanza, the company has experienced stagnant revenues in SEK compared to previous year.
We are now enjoying good rates of occupancy in our properties and expect demand to remain firm given the attractiveness of the locations of these buildings. The business area Asset development and management remains subject to an ongoing strategic overview.
Since the withdrawal from the South African License, which was announced in May 2023, our active participation in the oil and gas industry came to an end. Our income from the Sale and Purchase Agreement of October 2021 continues to come in regularly. We have now received as of October 2023 a total of USD $107 million with another $73 million securely due to come in by October 2026 and there is another promising possibility of additional earn out payments as we have moved into the second phase of the Licence.
We will continue the transition into our new, more sustainable business direction and the partnership with KAYA marks a pivotal point on this journey. I am happy in how Crown operates the current business areas, and I am looking forward with both excitement and reassurance to the immense value that we are now building for the planet, the company and our shareholders.
Yoav Ben-Eli
CEO, Crown Energy
For additional information, contact:
Yoav Ben-Eli, CEO +46 (0) 8 400 207 20
Address
Crown Energy AB (publ)
Skeppargatan 27
SE-114 52 Stockholm, Sweden
www.crownenergy.se
About Crown Energy
Crown Energy is dedicated to a transformation into the new and more socially responsible business direction, with focus on the medical technology industry and on improving our green footprint by way of investing in companies active in those areas.
Crown Energy has been active in the oil and gas business for more than 10 years. Today the only remaining asset in the energy field is a passive holding in an Iraq Licence which following the signing of a sale and purchase agreement is being actively divested. Crown has withdrawn from and/or written down its other earlier energy holdings.
The business area Asset development and management that is based in Angola will be subject to a strategic overview.
The new investment into the medtech company AccYouRate marks the start of the new Crown Energy. Accyourate holds high-tech patents and creates algorithms to support its production of ‘smart’ wearable garments for use in the medical industry as well as services such as analysis, data gathering and extrapolations of medical information and growth of medical databases.