OXE Marine AB publishes annual report for 2020
OXE Marine AB has published its annual report for 2020, highlighting significant progress in the development of its diesel outboard engine, OXE Diesel. The company secured EUR 4 million in funding and established new manufacturing partnerships in Poland and the USA. Key achievements include receiving a commercial order from the US Coast Guard and entering a cooperation agreement with Evoy AS for electric propulsion. However, the company faced production delays due to COVID-19. Management anticipates continued demand for its innovative products in the marine market.
- Secured EUR 4 million in funding.
- Received first commercial order from the US Coast Guard.
- New manufacturing partnerships in Poland and the USA.
- Entered cooperation with Evoy AS for electric propulsion.
- Obtained EPA Tier 3 certification for OXE300.
- European patent pending for electric duoprop outboard.
- Production delays due to COVID-19 impacting supply chain.
STOCKHOLM, March 26, 2021 /PRNewswire/ -- OXE Marine AB today published the annual report for the 2020 financial year on the company's website www.oxemarine.com.
MANAGEMENT REPORT
Information about the business
OXE Marine AB (publ) (NASDAQ STO: OXE) (OTCQX: CMMCF) was formed in 2012 and after several years of development has developed a diesel outboard for the marine market. The head office is located in Helsingborg with product development, part assembly, as well as testing of the product, carried out in Ängelholm. OXE Marine AB is listed on Nasdaq First North, ISIN SE0009888613. The global outboard market has long been dominated by gasoline engines, but with a diesel engine you get a stronger and, above all, a more fuel-efficient engine.Several attempts have been made to develop outboard engines for diesel fuel, but the difficulty lies in developing a sufficiently strong design for power transmission between the engine and the propeller. OXE Marine's outboard engine, OXE Diesel, is the first diesel outboard that is capable of replacing the well-established gasoline outboards in the higher power levels, in commercial and governmental operations. The engine is a modular platform that has been configured for a horizontally mounted engine, unlike traditional outboards that have vertical engine installations. OXE Marine's unique solution has led to great international demand for the company's engines. Among other things, in 2015 the North Atlantic Treaty Organisation ("NATO") introduced a directive, Single Fuel, which stipulates that all NATO equipment must be run on diesel if this is an available alternative in the market.
Significant events during the financial year
OXE Marine AB ("The Company") announced the following significant events during the year:
- The company name changed from Cimco Marine AB (publ) to OXE Marine AB (publ)
- The company received EUR 4 m in funding, relating to Tranche B of the EIB facility.
- PanLink in Tczew, Poland selected as the production partner for the OXE300 and Outdoor Network Manufacturing in Albany, USA selected as the new manufacturing partner for the 125hp to 200hp series.
- Following the successful collaboration with the BMW Group of marinizing their 3 liter, 6 cylinder bi-turbo engine for use in the OXE300s, OXE Marine AB and BMW agreed to co-brand the OXE300.
- The Company received first commercial order from the US Coast Guard following testing and validation.
- The Company entered into a cooperation agreement with Evoy AS, an electric marine propulsion company based in Norway, to assess the technical and market viability of a high-powered electric outboard.
- The Company announced that the European Patent Office intends to grant OXE Marine AB (publ) a European patent for an electric duoprop outboard.
- The Company carried out a directed share issue of SEK 65.9m to strategic and qualified investors to finance an accelerated growth strategy. The directed share issue increased the number of ordinary shares in OXE Marine by 32 950 000, from 164 839 521 to 197 789 521, and the share capital increased by SEK 987 993.18 from SEK 4 942 650.17 to SEK 5 930 643.35. The subscription price amounted to SEK 2.0 SEK per share and has been determined through a traditional book-building procedure with a large number of qualified investors. The Board assessed that the subscription price was market-based.
- The Company received the official approval and issuance of the United States Environmental Protection Agency ("EPA") Tier 3 certificate for OXE300.
- The Company's distributor Diesel Outboards LLC confirmed order for more than 50 OXE300 from US government for deployment in Central America.
- COVID-19: The company was impacted by COVID-19 in several ways, including delay in the preparations to start production of the OXE300 due to supply chain disruption. The Company also took appropriate action to conserve resources and ensure continuity of business and put certain employees on short term furlough and received funding from Tillväxtverket of SEK 0.5m for the period April to June 2020. The Management team took a voluntary
20% pay cut during this period.
Future Prospects
OXE Marine's future growth is dependent on the company developing and producing sustainable products. Work on quality assurance of the product and the supply chain will continue during 2021. The Company continues to develop an organisation that works in a structured and efficient way with quality. Based on the recent development in the Order Book, Management's assessment is that demand will continue to be strong from the market.
NOTE: The English version is a translation of the Swedish version, for any inconsistencies in the translation refer to the Swedish version.
This disclosure contains information that OXE Marine AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 26-03-2021 11:00 CET.
CONTACT:
Certified Adviser
FNCA Sweden AB is Certified Adviser for OXE Marine AB (publ). Contact details to FNCA Sweden AB: tel. +46 8 528 00 399, e-mail info@fnca.se.
For further information, please contact:
Myron Mahendra, CEO, myron.mahendra@oxemarine.com, +46 76 347 59 82
Anders Berg, Chairman, anders.berg@oxemarine.com, +46 70 358 91 55
OXE Marine AB (publ) (NASDAQ STO: OXE) (OTCQX: CMMCF) has, after several years of development, constructed the OXE Diesel, the world ́s first diesel outboard engine in the high-power segment. OXE Diesel has a unique belt driven propulsion system that allows a hydraulic multi-friction gearbox to be mounted. This means that the engine can handle significantly higher loads than a traditional outboard engine. OXE ́s OXE diesel has a horizontally mounted engine as opposed to a traditional outboard with a vertically mounted engine.
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The following files are available for download:
ANNUAL REPORT 2020 | |
https://news.cision.com/oxe-marine-ab/i/annual-report-2020,c2892877 | Annual Report 2020 |
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SOURCE OXE Marine AB
FAQ
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