Bactiguard has been active in the Middle East for a number of years. In most markets, we have established strong distributor relationships that generate regular sales. In other markets (including Iraq), business is more irregular and dependent on public procurement, which requires local presence to maintain a sustainable business. Therefore, Bactiguard intends, over time, to transfer the distribution responsibility for some of these markets to a European distributor, with long experience and established relationships in the region, as well as a strong financial position and ability to pay.

Under a previously signed framework agreement, Bactiguard now transfers the distribution in Iraq and accounts receivable at a book value of SEK 17.1 million. The proceeds amount to SEK 12.8 million and, therefore, a write-down of accounts receivable corresponding to the balance of SEK 4.3 million is made in the accounts for 2018. The positive cash flow of SEK 12.8 million will be recorded in connection with the completion of the transaction, when the proceeds are paid in the first quarter of 2019.

The transfer is expected to be positive for Bactiguard’s long-term profitability in the Middle East, but it is not possible today to assess the financial effects beyond what is stated above regarding the transfer of accounts receivable.

This information is information that Bactiguard Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below 2019-02-05, at 07:45

For further infromation, please contact:
Cecilia Edström, CFO, mobile phone: +46 722 262 328