Spinnova: Binding pacts signed: Spinnova buys all Woodspin

Spinnova: Binding pacts signed: Spinnova buys all Woodspin

Spinnova, a Finnish company specializing in bio-based materials, has finalized the acquisition of Woodspin, a significant milestone in its strategic efforts. According to a recent update from Inderes [1], Spinnova and Suzano were set to dissolve their partnership by August, with Suzano transferring strategically important assets to Spinnova at a nominal price and providing an additional 5 MEUR in financing for Woodspin. The finalization of this agreement is a critical step for Spinnova as it aims to implement its new strategy and transition to the commercial phase of its technology deliveries.

Spinnova's H1 report, set to be released on Thursday at 8:30 am EEST, will provide insights into the company's progress in dissolving its partnership with Suzano and the status of its new strategy. The company has been working to unwind the partnership and identify new partners, which has likely impacted its cost-efficiency efforts. Despite these challenges, Spinnova has written down its Woodspin investment of 19.4 MEUR at the end of 2024, contributing to an estimated operating loss of approximately 29 MEUR for H1.

The acquisition of Woodspin is expected to enhance Spinnova's operational capabilities and strengthen its position in the bio-based materials market. However, the company's net cash position has declined from approximately 41 MEUR at the end of last year to around 32-33 MEUR due to negative operating cash flow and certain investments. This situation underscores the need for additional financing in the medium term.

Spinnova has not provided guidance for the current year and is unlikely to do so in connection with the H1 report. The company's focus remains on implementing its new strategy and transitioning to the commercial phase of its technology deliveries, which is expected to take at least a year under the best-case scenario.

References:
[1] https://www.inderes.fi/en/analyst-comments/spinnova-h125-preview-focus-on-new-strategy-and-status-of-suzano-negotiations