NFTY: Make a backup

(Boursier.com) – NFTY He requested and received this Tuesday in the Lyon Commercial Court the opening of a precautionary measure. It also announces on this occasion the amendment of the terms allowing the withdrawal of the last tranche of the contract with ABO signed in January 2022, and discussions are underway to sign a new contract of 5 ME still with ABO as well as a resumption of listing its shares for Thursday, August 4th. As a reminder, in its press release issued on February 8, 2022, the group announced a significant decrease in its activity in 2021 by 21%. Despite encouraging signs at the start of the year, the downturn in activity finally worsened in the first half and came with exceptional fees.

The level of consolidated sales, which decreased by more than 50%, reached 2.07 ME in the first half of 2022, compared to 4.74 ME in the first half of 2021. This level of activity therefore has a significant impact on monetary and financial commitments. As of July 26, 2022, the total accrued and accrued liabilities were valued at €4.9 million, including the accrued 327 thousand. Within this amount are bank debts of 768 kroner and bonds of 437 kronor, as well as supplier debts of 1.2 million kronor (excluding litigation and acquisitions of securities) and tax and social security debts of 803 kroner. Liabilities also include the debt of convertible bonds of 1.3 million pounds, the conversion of which has so far become uncertain, “due to the unfavorable development of volumes and the share price of ALNFT”. The performance level of clients is estimated at a limited amount of 1.1 million pounds, given the significant decrease in activity, and availability at around 375 Swiss francs.

After considering all options with the aim of quickly restoring its financial balance, the company opted for the voluntary protection measure accepted by the Lyon Commercial Court on Tuesday, August 2nd. The monitoring period is open for the second half of 2022. During this period, “the company can take advantage of freezing its debts and reorganizing the company thus ensuring its recovery more calmly.” Without implementing this safeguard measure, the Company would not have been able to meet its financial obligations as of the end of the third quarter of 2022.

All companies underperformed in the first half of 2022, especially after the ad purchases ceased from The Google, due to lack of liquidity and caused a large accumulation of unpaid bills owed by the company to the giant American company. Influencing and comparison activities, which contributed 883 KE of revenue in the first half of 2021, contributed only 158 KE in the first half of 2022. Other marketing performance activities, Affiliate Platform recorded a turnover of only 641 KE in the first half of 2022. 2022, 5 times less than expected. The activities of the agency division, consisting of the trading office and the advertising department, generated 458 thousand in sales, which is almost two times less than in the first half of the previous year. Other discontinued activities reduced their turnover by approximately 70%. Finally, the new NFT activities, which are still under development, did not generate any activity.

The extraordinary fee also increased the impact on cash, particularly judgments against the company, in commercial court and on appeal to the labor court, to more than 600 kelvin.

The cash impact is further exacerbated by the shortfall in the case between a group subsidiary and the buyer of Orchidia Marketing, which was sold in 2017, for which the last 8 due SEK 200 semi-annual payments of seller credit were not met. , a total amount not received by the group of 1.6 million pounds, excluding the EBITDA premium of 900 Swiss francs planned in July 2020 and also unpaid. The last scheduled payment for this transaction, in the amount of €2.5 million, is due in January 2023.

The company’s financing during its probationary period, if accepted by the Commercial Court, its safeguard plan will be strengthened by its partnership with Alpha Blue Ocean (ABO) which was granted, subject to obtaining the backup, the fourth scheme withdrawal and the last installment in the amount of 750 kroner, under the contract of January 13 2022 for 3 million pounds. After the two withdrawals announced on April 4, 2022, the cumulative interim periods will not allow the fourth tranche to be withdrawn until January 2023. With this new agreement, the ABO will, subject to obtaining the opening of the safeguards, relinquish to the satisfaction of part of the precedent of the terms, allowing the immediate withdrawal of the last tranche of 750 Corona.

On the other hand, the ABO is strengthening its “support” by signing a non-binding letter of intent with a view to signing a new contract to issue bonds convertible into company stock, relating to a total amount of 5 ME.

NFTY It therefore intends to start “quietly” a new phase of restructuring, with the aim of returning to profitability and rebuilding cash flow. To achieve these ends, the Group’s management does not rule out any economic and growth strategy. The company will also ask Euronext to resume its listing starting Thursday, August 4th.

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