Answers to questions from the shareholder community

At the time of this writ­ing, Smoltek has about 3,000 share­hold­ers. About half of them hang out in a Dis­cord group ded­i­cat­ed to dis­cussing the Smoltek stock.

I don’t know who start­ed the group, but I do know who its main asset is, both in terms of set­ting a good tone and help­ing mem­bers under­stand the more intri­cate parts of Smoltek’s tech­nol­o­gy and nav­i­gate the quirks of stock own­er­ship. This per­son goes by the pseu­do­nym Emma200. I know this because, as a very small share­hold­er in Smoltek, I am also a group member.

The oth­er day, Emma200 wrote to the group that s/​he could not attend the webi­nar and there­fore couldn’t ask ques­tions. Instead, s/​he emailed us four excel­lent and rel­e­vant ques­tions we want­ed to answer.

How­ev­er, as a pub­licly trad­ed com­pa­ny, we have many rules about what we say and how we com­mu­ni­cate. That’s why it takes us time to respond if we respond at all. The words we use in response must be weighed on a gold­en scale, and var­i­ous reg­u­la­to­ry bod­ies must have their say.

Some­times, we can’t get back to you at all—not because we are unwill­ing or unable to respond, but because we are not allowed to. This is frus­trat­ing for every­one, espe­cial­ly those of us work­ing in cor­po­rate com­mu­ni­ca­tions. But these are the rules.

But this time we have a go from rel­e­vant reg­u­la­to­ry bod­ies. That is if we give every­one an equal chance to par­tic­i­pate in the answer. Hence, the press release announc­ing this blog post.

Since Emma200 also post­ed the ques­tions in the Dis­cord group, we assume s/​he doesn’t mind a pub­lic answer. So, here are Emma200’s ques­tions and our answers with­out fur­ther ado.

Q: About sell­ing sub­sidiaries or parts of the busi­ness: What about patents and future license rev­enues from such a sale? Are you will­ing to sell Semi and the patents/​rights/​applications of the semi­con­duc­tor side? If so, will it gen­er­ate future license rev­enues thanks to the under­ly­ing patents and the “Smol­Grow” base locat­ed in Smoltek AB? Or are you pre­pared to sell Semi and the patents/​rights for the semi­con­duc­tor appli­ca­tions for a lump sum that will NOT gen­er­ate future license income to Smoltek as a par­ent company?

A: It is too ear­ly to spec­u­late on what such a busi­ness mod­el will look like. We assume that a part­ner will invest in the com­pa­ny and fund the devel­op­ment and industrialization/​commercialization of each busi­ness area and tech­nol­o­gy. In the event of a poten­tial pur­chase of the com­pa­ny at a lat­er stage, this will be against a val­u­a­tion of future rev­enues, with roy­al­ties on the devel­oped com­po­nent being part of the trans­ac­tion, either as cur­rent or pre­paid roy­al­ties. A part­ner will have access to patents, rights, and appli­ca­tions as need­ed to best sup­port the nego­ti­at­ed trans­ac­tion model.

Q: It appears that you have sub­mit­ted appli­ca­tions that, if suc­cess­ful, could pro­vide “soft fund­ing” in Q1 2025 and will be sub­mit­ting oth­er sim­i­lar appli­ca­tions. What amounts could this pro­vide in terms of cap­i­tal received? When did you sub­mit your first appli­ca­tion? Sup­pose you sub­mit fur­ther appli­ca­tions suc­cess­ful­ly; what amounts might this involve regard­ing cap­i­tal received, and when do you think this might be?

A: The sub­mit­ted appli­ca­tion can pro­vide up to SEK 10 mil­lion. If we are suc­cess­ful, the pay­ment will come in the first half of 2025. We con­tin­u­ous­ly eval­u­ate oth­er oppor­tu­ni­ties and will com­mu­ni­cate applications/​programs in which we participate.

Q: How have the terms and con­di­tions of TO8 changed due to the issue?

A: Giv­en that the min­i­mum lev­el in the rights issue is reached, the sub­scrip­tion price and/​or the option uti­liza­tion ratio for the war­rants of series TO8 will be recal­cu­lat­ed accord­ing to the war­rant terms. The recal­cu­la­tion will be com­mu­ni­cat­ed by Smoltek sep­a­rate­ly after the com­ple­tion of the rights issue.

Q: There are rumors, com­ing from inside Smoltek i Hydro­gen, that Smoltek Hydro­gen will build a fac­to­ry with new own­ers. I have not seen or heard any­thing pub­licly about this. Can you com­ment on this?

A: Our plan­ning includes eval­u­at­ing man­u­fac­tur­ing process­es and equip­ment and devel­op­ing scale-up plans required for indus­tri­al-scale man­u­fac­tur­ing. How this is imple­ment­ed in prac­tice and with what approach depends on the part­ner, indus­tri­al or finan­cial, that comes into the com­pa­ny to fund these activities.

These were Emma200’s ques­tions and our care­ful­ly craft­ed and vet­ted answers.

I expect that Emma200 will post the answers on the Dis­cord group, and the share­hold­er com­mu­ni­ty will scru­ti­nize them and inter­pret them like Krem­li­nol­o­gists. I will be fol­low­ing the dis­cus­sion with inter­est. You should, too! Join today if you are not already a member

For clar­i­ty, nei­ther I nor any­one else at Smoltek par­tic­i­pates in dis­cus­sions on the Dis­cord group about Smoltek. That would be unpro­fes­sion­al and inappropriate.