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.