Reports Published: 29-11-17 08:43

OptiFreeze AB: Interim Report   2017-01-01 - 2017-09-30

Summary of quarters 1, 2 and 3 (Q1, Q2, Q3), 2017

The following summary refers to the period 1/1/2017 - 30/9/2017, compared to 1/1/2016 - 30/9/2016 

· Net sales for the first quarter totaled 0 SEK (0 SEK)
· Operating result for the period of till -7 094 459 SEK (-4 920 324 SEK)*
· Cash and bank balance 1 267 394 SEK (13 321 413 SEK SEK)
· Capitalized development costs of 1 055 136 SEK (704 744 SEK)
· Registered shares 9 805 714 (8 580 000)
· Result per share -0,83 SEK (-0,57 SEK)
· Equity Ratio 95 % (95 %)

Summary of quarter 3 (Q3), 2017

The following summary refers to the period 1/7/2017 - 30/9/2017, compared to 1/7/2016 - 30/9/2016 

· Net sales for the first quarter totaled 0 SEK (0 SEK)
· Operating result for the period of -1 860 084 SEK (-1 651 769 SEK)*

*Result incl.

depreciations for the period 

CEO and acting chairman comments

During Q3, the first industrial pilot facility was delivered to OptiFreeze. During this quarter the facility was used to confirm that previously conducted tests will also work in industrial production. OptiFreeze now has a pilot facility showing the technology to be fully scalable. Hence, the company can now divert its focus, from a method and research oriented focus to a more market oriented focus. There has been a dramatic increase in client and prospect interest. Q3 has seen intensified client and prospect contacts, as well as a vast number of meetings.

Amongst other things, OptiFreeze has intensified the talks with 2 prospective clients within the OptiDry and OptiFlower sectors. Successful client tests were performed at the OptiFreeze Lund facility. These tests confirm the technology to work with the client products. The plan is to expand these tests at the client sites. When this is done, OptiFreeze and the client will sign a cooperation agreement with the intention of the client purchasing a facility. At the end of Q3 (early November) OptiFreeze will commence joint testing with a large European distributor within the OptiFresh sector.

OptiFlower
During Q3, the company has created a separate flower (cuttings) category - OptiFlower. This category was previously part of OptiFresh. The process is identical for both, however the cuttings customer group is vastly different compared to the OptiFresh one. In addition, the OptiFlower potential is enormous, requiring a separate focus for this particular category. Since the OptiCept process has made it possible to both vastly reduce waste amounts and create vast supply chain savings, the interest in OptiFlower has been immense.

OptiDry
The technology implementation within the OptiDry application sector reduces drying times by 30 to 50 percent. This enables an increased production capacity as well as reduced energy costs. Also, the colour and aroma preservation abilities of the treated products will improve.

OptiFreeze and OptiFresh
As the new pilot facility was successfully implemented, the talks with food industry clients were intensified. The previous - slightly cautious - food industry attitude has been replaced by interest in more concrete discussions. The clients clearly see the vast technology advantages. The sales process will most likely take longer time with these clients compared to the OptiFlower and OptiDry sales processes. This is due to the clients being more cautious before introducing new manufacturing technology as this brings about changes in the delivery chain.

Client focus and goals
During the upcoming quarters there will be a heavy focus on sales, as well as on installing the first OptiFlower and OptiDry sector facilities. The OptiFreeze and OptiFresh market processing will focus on the client logistics solutions, as well as on emphasizing the market for those products receiving vastly prolonged sustainability thanks to the technology. The previously announced goals of a 2 sold facilities minimum during 2018 remain unchanged.

Other
During Q3 it was also decided that our CEO Nick Kramer will resign his post after a period of sick leave. The process of finding his replacement has been initiated, and it is our ambition to have a new CEO in place before the New Year. Göran Hedbys temporarily stepped in as acting chairman in order to make sure that operations were continued as planned, as well as securing top priority for our sales efforts.

Lund November 29th, 2017
Göran Hedbys, CEO 

OptiFreeze AB

Optifreeze har en patenterad teknik som möjliggör att smak, form och struktur hos grönsaker, frukt och bär kan säkerställas genom hela nedfrysnings- och upptiningsprocessen. Tekniken öppnar för nya affärsmöjligheter för odlare och distributörer samt för företag inom kylteknik och livsmedelsproduktion runt om i världen. Förlängd hållbarhet leder till billigare transporter som i sin tur leder till positiva miljöeffekter, behovet av snabba flygtransporter reduceras. Optifreeze är resultatet av en längre tids forskning vid institutionen för livsmedelsteknik i Lund. Forskargruppens arbete har uppmärksammats på olika sätt och har bland annat erhållit stöd från EU.

Kalkstensvägen 16,
224 78 LUND
+46 738 – 145 215 http://www.optifreeze.se