Creotech Instruments puts Public Offering on hold

The Management Board of Creotech Instruments has temporarily suspended the public issue of its series I shares. The decision comes in the wake of the persisting adverse situation in the financial markets spurring negative investor sentiment regarding equity investments. Contracting stock exchange indices have further eroded investor confidence over the recent days, which could have an adverse impact on the final parameters of the company’s share issue. Nevertheless, Creotech Instruments stands by its plans to conduct the Offering, followed by an application for a listing transfer of its shares from the NewConnect market to the Warsaw Stock Exchange’s regulated market. The company intends to resume the issue after the situation on the capital markets stabilizes.

“In consultation with our advisors, we decided to temporarily suspend our Offering because of the unfavorable situation in the stock markets seen in recent days. While we have not determined the new schedule, we are constantly monitoring the financial markets and once they stabilize, we intend to follow through with our stock market plans. Thus, we stand by our plans to complete the Offering and transfer Creotech’s listing to the WSE’s main market,” says Grzegorz Brona, President of the Management Board of Creotech Instruments S.A. “We still hope that the consistent pursuit of our strategy assuming the development and commercialization of our proprietary satellite platform, new quantum computer and quantum cryptography projects, and advanced geospatial data processing services for  UAV operation support will convince investors that the company offers strong value growth potential in the coming years. Also importantly, even now the company is able to achieve a robust EBITDA (PLN 5.6m in 2021, EBITDA adjusted by the net result on R&D activity), which, thanks to ongoing investments, shows potential for multi-fold growth. We anticipate that each microsatellite will sell for USD 1-4m with an expected EBITDA margin (excluding fixed costs) of 60-70%. Our existing production capacity allows for delivery of up to 10 such satellites per year, with plans for expansion using proceeds from the planned share issue,” adds Grzegorz Brona.

On 25 April 2022, Creotech Instruments published a Prospectus for the new Public Offering of up to 396,558 series I shares. Initially scheduled to open on 12 May 2022, subscriptions for the Retail Investors Tranche have not started yet. The Lead Manager of the Offering is Dom Maklerski Navigator S.A with Noble Securities S.A. acting as Co-manager and cc group sp. z o.o. advising the Management Board and law firm WBW Weremczuk, Bobeł & Wspólnicy serving as legal advisors.

Creotech Instruments is the largest Polish manufacturer and supplier of space technologies to global partners. The Piaseczno-based company is also expanding its drone and quantum computing businesses and was the first European manufacturer of control electronics for new generation computers.

Some of Creotech Instruments’ existing projects were financed from last year’s IPO, which netted over PLN 11m.

Completed contracts in the area of space technologies and quantum computing position the company to improve its financial performance. In 2021,  Creotech Instruments generated total revenues of over PLN 40 (up by 20% YoY) and improved its EBITDA margin (adjusted for the net result on R&D activity) to approx. 17%.

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This material (and the information contained herein) is for information purposes only and in no event should be used as the basis for making a decision to acquire or subscribe for shares in Creotech Instruments S.A. with its registered office in Piaseczno (the “Company”). The public offering of the Company’s shares referred to in this material (the “Offering”) is carried out only on the basis of a prospectus within the meaning of Article 6.3 of Regulation 2017/1129 approved by the Polish Financial Supervision Authority (the “PFSA”) on 25 April 2022 (the “Prospectus”), which is the only legally binding document containing information about the Company, the Offering and the admission and introduction of the Company’s shares and rights to the Company’s shares to trading on the regulated market operated by the Warsaw Stock Exchange (the “WSE”). The PFSA approves the Prospectus only as meeting the standards of completeness, comprehensibility and consistency set out in Regulation 2017/1129. In approving the Prospectus, the PFSA does not verify or approve the Company’s business model, methods of conducting business activity or the means of its financing. In the proceedings for the approval of the Prospectus, neither the accuracy of the information contained in this document nor the level of risk related to the activities conducted by the Company nor the investment risk related to the purchase of the Company’s shares are assessed. For the purposes of the Offering in Poland and the admission and introduction of the Company’s securities to trading on the regulated market operated by the WSE, the Company published the Prospectus on its website (https://creotech.pl/ipo/) and additionally, for information purposes only, on the websites of DM Navigator (https://dmnavigator.pl/oferty) and Noble Securities (https://noblesecurities.pl/bankowosc-inwestycyjna/emisje-ączy/prospektyemisacyjne/2266-prospekt-emisacyjny-creotech-instruments-sa), in accordance with the applicable provisions of European and Polish law. Any investments related to the Offering should be made only on the basis of information contained in the approved and published Prospectus and in any amendments or supplements to the Prospectus. The Prospectus may contain information which varies from the information contained in this press release.

This press release is indicative only, and the information contained herein may not be deemed comprehensive or complete. This press release or any part hereof or the fact of its dissemination shall not constitute grounds or be relied upon in connection with any agreement, obligation or investment decision.

This press release is not intended to be distributed or used by any person or entity in any jurisdiction where such dissemination or use would conflict with local laws or regulations or which would subject the Company or its shareholders or any of their affiliates to authorization, notification, licensing or other requirements under applicable regulations. The dissemination of this press release and other information related to the Offering may be restricted by law. Any persons who come into possession of any document or other information referred to in this press release should inform themselves about and comply with such restrictions. Failure to comply with these restrictions may constitute a violation of the securities laws of any jurisdiction. It may be unlawful to distribute this press release in some jurisdictions.

The Prospectus and the Company’s securities covered by the Prospectus have not been and will not be the subject of registration, approval or notification in any country outside the Republic of Poland, in particular in accordance with the provisions of the Prospectus Regulation or American Securities Act of 1933 as amended (“US Securities Act”) and cannot be offered or sold outside the Republic of Poland (including in other European Union member states and the United States of America), unless such an offer or sale could be made in a given state lawfully, without the need to meet any additional legal requirements by the Company, shareholders or any of their affiliates and their advisors. In particular, this press release is not an offer of securities for sale in the United States of America. The securities referred to in this press release have not been and will not be registered under the US Securities Act and may not be offered or sold in the territory of the United States of America, except as an exception to the registration requirement under the US Securities Act or as part of a transaction that is not subject to registration under the US Securities Act. No public offering of the Company’s securities will be conducted in the United States of America.