Oslo, May 23, 2017 - As previously communicated, Solon has been in dialogue regarding the sale of non-core assets. Solon has now entered into binding agreements for the sale of three real estate properties including two commercial properties. The combined gain on sale is approximately NOK 19 million and will result in increased liquidity of approximately NOK 76 million. These sales will be recognized in Q2 and Q3 this year.
Solon has, after the above mentioned sales, divested all non core real estate assets.
As previously communicated, the biopharmaceutical division engaged a team of international industry experts to propose an updated development plan and strategic partnership assessment. The team has been in dialogue with several potential partners and the response has been positive. However, it has not yet been possible to conclude a strategic partnership on acceptable terms.
As the current agreement with the team of industry experts expires at the end of May, various alternatives are being considered by management including engaging advisors to explore market opportunities or winding down the activities. Until a decision is reached, the current activities aimed at maintaining the value of the related intellectual property rights will continue while at the same time reducing the current cost base to a minimal level. The planned cost reducing actions will decrease the annual cash burn for the biopharmaceutical division from approximately NOK 24 million to NOK 14 million with full effect anticipated from end of Q3 2017.
For further information, please contact:
Andreas Martinussen, Chief Executive Officer, Solon Eiendom ASA
Tel: +47 400 00 405, email: am@soloneiendom.no
Scott Danielsen, Chief Financial Officer, Solon Eiendom ASA
Tel: +47 952 55 620, email: sd@soloneiendom.no
About Solon Eiendom
Solon Eiendom is a Norwegian residential real estate development company focusing on the Oslo and Akershus region. Solon Eiendom was established in 2006 by founder Simen Thorsen and investor Tore Aksel Voldberg.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
