Oslo, 31 October 2024
CodeLab Capital AS has today taken an important decision. After careful
evaluation and intensively analyzing its alternatives, the company has concluded
to scale back on its investments in and funding of its wholly owned subsidiary
Uniscale AS.
Ultimately the decision is based on the responsibility to protect the
shareholders' values and reflects the company's more restrictive capital
allocation priorities.
Although good commercial traction over summer, Uniscale faced challenges,
particularly with the onboarding and integration of new customers. This fact
combined with a challenging financial investor market, have been significant
factors in this decision.
Despite the decision to reduce the financial support by CodeLab Capital to
Uniscale AS, the Board firmly believes that the product developed in Uniscale
could have value for potential customers. But the Company evaluates, despite
Uniscale implementing several cost optimization initiatives over the last period
to increase the runway and reduce the cash burn, that it will take longer time
and require more capital than initially planned for.
CodeLab Capital AS remains committed to working closely with Uniscale AS to
explore potential solutions. The company's primary goal is to identify and
execute on an alternative sustainable path forward for Uniscale's operations and
product. CodeLab Capital AS intends to make a small investment in Uniscale AS to
give the organizations of both companies the time to pursue/explore the inherent
value potential, which could also entail looking at strategic solutions.
Looking ahead CodeLab Capital AS will maintain a forward-thinking focus,
ensuring efficient capital allocation to maximize shareholders return in an
ever-evolving market environment.
For further queries, please contact:
CEO Kristian Ikast: ki@codelabcapital.com
CFO Christoffer Mathiesen: cm@codelabcapital.com
This information in this stock exchange announcement is considered to be inside
information pursuant to the EU Market Abuse Regulation and is published in
accordance with section 5-12 the Norwegian Securities Trading Act.