The subsidiary SolarSpring GmbH will file for insolvency proceedings in Germany and the Board will propose that the AGM resolves on liquidation of Clean Industry Solutions Holding Europe AB
The Board of Directors in Clean Industry Solutions Holding Europe AB (publ) ("CISH Holding" or the "Company") announces that its wholly owned subsidiary SolarSpring GmbH is left with no other option but to file for insolvency and that the Board of Directors in the Company will propose that the Annual General Meeting of CISH Holding resolves on liquidation of CISH Holding. The assessment is based on a thorough analysis of CISH Holding's future opportunities and the fact that the holding company has no remaining operational assets or business activities. As a result, the most prudent course of action is to liquidate the holding company to ensure that as large part as possible of the Company's remaining assets benefit the shareholders.
SolarSpring GmbH's operations have not progressed in 2024 to an extent that will enable a break-even result in the foreseeable future, without a significant investment. Due to the current market value of CISH Holding, the raising of such an amount is not deemed possible.
Even if further loans were granted by CISH Holding, which would allow the business to continue in the short to medium term, SolarSpring GmbH would still be at risk of insolvency in the coming months. It was a very difficult decision for the board of CISH Holding as its objective is to protect the value of CISH Holding's assets. Providing further equity to SolarSpring GmbH with no likely possibility to prevent insolvency of the subsidiary could not be justified by the board. It has therefore been decided to apply for insolvency proceedings in Germany for SolarSpring GmbH in the coming days. Should the insolvency proceedings not be successful, but instead result in a bankruptcy, CISH Holding will have to write off the asset causing a loss of approx. 5.4 mSEK.
The Board of Directors is confident that this decision is in the best interest of its shareholders under the current circumstances as it is preserving the maximum possible value of the Company.
Given that both subsidiaries have filed for insolvency and all operations were conducted through these entities, the holding company has no remaining operational assets or business activities. As a result, the most prudent course of action is to liquidate the holding company to distribute any remaining assets to shareholders.
Against this background and to ensure that as much as possible of the Company's remaining assets benefit the shareholders, the Board of Directors has decided to propose that the Annual General Meeting resolves to distribute as large a portion of capital as possible and take a decision that the Company is to be liquidated.
Assuming that the Annual General Meeting resolves in accordance with the Board of Directors' proposal, the Board of Directors will apply for delisting of the Company's shares from Nasdaq First North Growth Market.
This disclosure contains information that Clean Industry Solutions Holding Europe 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 21-05-2024 20:15 CET.