Schmolz+Bickenbach - Capital Cut

All,

Schmolz+Bickenbach may no longer have its bonds outstanding, but we have been keeping an eye out for the equity that replaced them. 

The idea originally was to buy the equity around March/April 2020 and benefit from the inevitable rebound of volumes. But then Coronavirus came along and we stood back.

The rebound is of course delayed and the cash burn more extreme. So another cash injection became inevitable, but difficult at historic valuations. 

Now the company has come out with plans for a capital cut. The cut is only at 50%, but it paves the way for a second injection. A price of CHF 0.15 per share.

If there will be another investment case thereafter remains to be seen (likely), but we’ll first let this financing round pass.

Wolfgang