J.Molner
Press release from First North

J. Molner AS Consolidated Unaudited Interim Report for the First 6 Months of 2023 and increase of The J. Molner Company OÜ voluntary reserve

Tallinn, 2023-09-15 08:00 CEST -- J.Molner AS presents the group's consolidated 6-month unaudited interim reports. In addition, the group announces that the shareholder of The J. Molner Company OÜ has adopted a resolution on 14^th September 2023 whereby the voluntary reserve capital of The J. Molner Company OÜ formed on 28^th September 2022 is retrospectively increased as of 30^th June 2023 by EUR 1,065,000. The new size of the voluntary reserve capital is EUR 1,815,000. The voluntary reserve capital is increased by a non-monetary contribution the object of which is the conversion of a loan, given by the creditor of The J. Molner Company, into a subordinated termless loan with interest of 5% per annum on outstanding principal that is calculated monthly and the interest shall be payable to the creditor upon the repayment of the loan, if The J. Molner Company OÜ decides to pay interest. The loan agreement amendment agreement converting the loan to the above-described subordinated loan, that is entered into the voluntary reserve capital of The J. Molner Company OÜ, was concluded on 14^th September 2023 and took effect retrospectively from 30^th June 2023. In relation to the increase of the voluntary reserve capital of The J. Molner Company OÜ the equity of the company is, as of 30^th June 2023, in compliance with the requirements applicable to the net assets of a private limited company according to the Commercial Code.

Management Report

The Management Report has been prepared for the consolidated financial results of J.Molner AS, The J.Molner Company OÜ and The J.Molner Company LLC (hereinafter the“Group“) for the first half year of 2023. J.Molner AS was established on 22.09.2022 as a holding company without independent economical activity. The purpose of establishing J.Molner AS was to enable the initial public offering (IPO)  and admission to trading on the First North multilateral trading system of the shareholding in The J. Molner Company OÜ. As the corporate form (private limited company) of The J.Molner Company OÜ,  does not allow it to make a public offering of the holding and apply for admission to trading, J.Molner AS as a public limited company was founded. J.Molner AS was established with non-monetary contribution the object of which was a 100% holding in The J. Molner Company OÜ, thus J.Molner AS is the parent company of The J. Molner Company OÜ. The J. Molner Company Inc. is a subsidiary of The J. Molner Company OÜ. In the beginning of 2023, the U.S. entity The J. Molner Company LLC was acquired. The main purpose of the U.S. entity is the sale of the Group's products in the U.S. market.

In January 2023, the Group successfully passed its inspection of Eesti Ravimiamet. During the first half of 2023, the Group continued the development of its own generic drugs and the provision of analytical chemistry and method development services to third parties. In terms of analytical and development services, the Group served customers from the United States, Canada and Europe. In June 2023, the Group submitted its first fully owned drug application to the U.S. Food and Drug Administration. In addition, the Group continued to return to the market three U.S. registered drugs owned by the Group since 2022. The first drug is planned to be returned to the market in the second half of 2023, subject to regulatory approval.

For one drug product, the Group received its first ever new market approval from Health Canada in June 2023; the application for approval for the second drug product was submitted in March, 2023. In April 2023, The Group entered into a licensing agreement with a Canadian pharmaceutical distributor to commercialize two injectable drug products in Canada, pending approval from Health Canada. In addition, the Group has entered into a licensing agreement with the same Canadian pharmaceutical distributor to develop two drug products at the Group’s laboratory in Tallinn.

Important notes:

•   The Group's business is not seasonal.

•   The Group's activities are not accompanied by significant environmental and social impacts.

•   Interest rates did not change significantly during the financial year and the period of preparation of the annual report.

•   As J.Molner AS was founded using the 100% shareholding in The J.Molner Company OÜ as non-monetary contribution the consolidated comparative data is provided for period 01.10.2022-31.12.2022.

As per 30.06.2023 the total consolidated unaudited balance sheet of J.Molner AS was EUR 2,338,793 (as per 31.12.2022, EUR 1,746,410). The total consolidated balance sheet increased by 25% compared to the total consolidated balance sheet at the end of 2022. As per 30.06.2023, consolidated current assets amounted to EUR 933,392 (as per 31.12.2022 EUR 816,776), which is 40% of total assets (as per 31.12.2022 47% ). As per 30.06.2023 consolidated fixed assets amounted to EUR 1,405,401 (as per 31.12.2022 EUR 929,634), which is 60% of total assets (as per 31.12.2022 53%). As per 30.06.2023 the consolidated liabilities of J.Molner AS amounted to EUR 1,429,663 (as per 31.12.2022 EUR 1,484,767), which is 61% of the total balance sheet (as per 31.12.2022 85%). As per 30.06.2023 the consolidated equity was EUR 909,130 (as per 31.12.2022 EUR 261,643), which is 39% from total balance sheet (as per 31.12.2022 15%). As per 30.06.20233 it was decided to increase the voluntary reserve at the level of The J.Molner Company OÜ from long-term loan to align equity with the requirements of the Estonian Commercial Code.Previously the reserve amounted to EUR 750,000 and it was increased by EUR 1,065,000.

In January – June 2023 the Group’s investments to fixed assets were EUR 455,849, including EUR 426,278 spent on research and development. Depreciation expenses for the first 6 months amounted to EUR 9,458.

In April 2023, J.Molner AS concluded an unsecured loan agreement which extended the existing credit facility of The J. Molner Company OÜ and under which J.Molner AS is entitled to draw down an additional loan with a principal of up to USD 2,000,000. The term of the loan is five years, and the interest is 7% p.a. As per 30.06.2023 the consolidated unaudited loan liabilities were EUR 1,206,153 (as per 31.12.2022 EUR 1,296,357), of which EUR 277,483 is short term liabilities (as per 31.12.2022  EUR 274,178) and EUR 928,670 (as per 31.12.2022 EUR 1,022,179) is long term liabilities. In the first half of 2023 the interest on loans was EUR 56,969. In the period 01.10.2022-31.12.2022 the interest on loans was EUR 26,431 EUR.

As per 30.06.2023 the consolidated unaudited sales revenue was EUR 270,769, in the period 01.10.2022-31.12.2022 the consolidated unaudited sales revenue was EUR 22,987. In January – June 2023 the consolidated unaudited loss was EUR 444,526, in period 01.10.2022-31.12.2022 the consolidated unaudited loss was EUR 318,612.

As per 30.06.2023 The Group had 24 employees, 1 member of the management board and 3 members of the supervisory board. In January – June 2023 the consolidated unaudited labour costs amounted to EUR 517,658, of which EUR 27,014 was the costs of the reserve provided to employees.

Consolidated statement of financial position

(In Euros)

Consolidated income statement

(In Euros)

* As J.Molner AS was founded using 100% of the shares in The J.Molner Company OÜ as non-monetary contribution, the consolidated comparative data is provided for the period 01.10.2022-31.12.2022.

Consolidated statement of cash flows

(In Euros)

Consolidated statement of changes in equity

(In Euros)

* In the first half of 2023, the voluntary reserve increased in the amount of EUR 1,065,000 as of 30.06.2023 and the option reserve of 27,014 euros are reflected in changes in other reserves.

         For additional information please contact:
         
         Jason Grenfell-Gardner
         
         J.Molner AS
         Management Board member
         +372 536 00 346
         jason@jmolner.com