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STRAX AB files for bankruptcy

The board of STRAX AB has today decided to file a bankruptcy application with the Stockholm District Court. The company has requested that Lars Wiking, lawyer at Advokatfirma DLA Piper Sweden KB, be appointed bankruptcy trustee.

Since the beginning of Covid-19 in February 2020 the STRAX group faced unprecedented challenges, including declining mobile accessories market, significant channel shifts away from traditional wholesale towards online direct, followed by inflationary pressures, impacting demand and cost structure. These factors coupled with increased interest costs have now proven to be too large to steer through. Additionally, there was an ongoing dispute with the majority shareholder of the German based distribution platform, which ultimately caused that business unit to file for insolvency in May 2024 and to a large extent caused a domino effect by dragging down the other parts of the STRAX group.

Significant efforts for extended period have been made to solve the situation, including securing financing. However, the disputes burdening the company were eventually too extensive to overcome.

About STRAX

STRAX engages in accessories that empower mobile lifestyles. Our portfolio of branded accessories covers the main mobile accessory categories: Protection, Power, Connectivity, as well as Personal Audio.
Own brands are Xqisit and Flavr. Our distribution business retains a broad reach in the Americas and the Nordics. Our distribution also services other mobile accessory brands.

STRAX has evolved since being founded as a trading company in 1995. Today we have approximately 15 employees in 4 countries. STRAX is listed on the Nasdaq Stockholm stock exchange.

Divested own brands consist of Urbanista, Gear4, Clckr and Planet Buddies.
Discontinued operations include Health & Wellness, own brands Dóttir and grell, and licenced brand portfolio of adidas and Diesel.

STRAX AB files for bankruptcy

Year-end report 2024

STRAX – Work ongoing to save and rebuild the company

The Group’s sales for the period January 1 – December 31, 2024, amounted to MEUR 7.4 (30.2)
with a gross margin of -65.0 (-34.9) percent.

The Group’s result for the period January 1 – December 31, 2024, amounted to MEUR -2.7 (-66.6) corresponding to EUR -0.02 (-0.51) per share.

EBITDA from continuing operations for the period January 1 – December 31, 2024, amounted to
MEUR -2.2 (-51.8).

Equity as of December 31, 2024, amounted to MEUR -16.0 (-71.8) corresponding to EUR -0.13
(-0.60) per share.

As of December 31, 2024, STRAX is not fulfilling the special conditions in the loan agreement with PCP due to the development of profitability and financial position in the Group. STRAX board and management are working closely with PCP on a plan to return to compliance of the agreement.

“Our priority remains salvaging, stabilizing and rebuilding STRAX. We’ve significantly reduced operating expenses and are working to lower debt and improve liquidity.”

Gudmundur Palmason, CEO

About STRAX

STRAX has evolved since being founded as a trading company in 1995. Today we have approximately 15 employees in 4 countries. STRAX is listed on the Nasdaq Stockholm stock exchange.

Year End Report 2024

New date for publication of the Year-end report 2024

The Board of Directors in STRAX AB has decided to move the date for upcoming board meeting and publication of the 2024 year-end report until Friday, February 28, 2025.

This information was submitted for publication, through the agency of the contact person set out below at 16:40 pm CET on February 27, 2025.

About STRAX

STRAX has evolved since being founded as a trading company in 1995. Today we have approximately 15 employees in 4 countries. STRAX is listed on the Nasdaq Stockholm stock exchange.

New date for publication of the Year-end report 2024

Interim Report Q3 2024

STRAX – Challenges remain, whilst the objective to save and rebuild the company remains intact

The Group’s sales for the period January 1 – September 30, 2024, amounted to MEUR 7.4 (25.0)
with a gross margin of -65.0 (4.3) percent.

The Group’s result for the period January 1 – September 30, 2024, amounted to MEUR -1.9 (-25.5) corresponding
to EUR -0.02 (-0.24) per share.

EBITDA from continuing operations for the period January 1 – September 30, 2024, amounted to
MEUR -1.5 (-22.0).

Equity as of September 30, 2024, amounted to MEUR -73.6 (-33.6) corresponding to EUR -0.61 (-0.28)
per share.

As of September 30, 2024, STRAX is not fulfilling the special conditions in the loan agreement with PCP due to the development of profitability and financial position in the Group. STRAX board and management are working closely with PCP on a plan to return to compliance of the agreement.

Significant events after the end of the period

STRAX completed an asset purchase agreement to acquire select assets from the insolvency estate of Strax GmbH in Germany. The transaction scope covers the two sales entities in Scandinavia, and some consumer accessories brands. The purchase price is KEUR 285, plus service fees.

“The effort to stabilize and save STRAX remains our top priority. We have made significant progress in minimizing operating expenses to essential levels and are actively pursuing strategies to reduce debt and improve liquidity.”

Gudmundur Palmason, CEO

About STRAX

STRAX has evolved since being founded as a trading company in 1995. Today we have approximately 15 employees in 4 countries. STRAX is listed on the Nasdaq Stockholm stock exchange.

Q3 2024

Acquires assets out of Strax GmbH insolvency estate

STRAX has completed an asset purchase agreement to acquire select assets from the insolvency estate of Strax GmbH in Germany. The transaction scope covers the two sales entities in Scandinavia, consumer accessories brands such as Xqisit and Flavr, inventories and customer contracts. The purchase price is KEUR 285, plus service fees.

“Our initial task will be stabilizing our sales and distribution entities in Sweden and Norway, whilst our mid-term plan is to add new brands and product categories, primarily in the health tech space. We are optimistic that we can re-establish Strax as a reliable supplier in the region.”

About STRAX

STRAX has evolved since being founded as a trading company in 1995. Today we have approximately 15 employees in 4 countries. STRAX is listed on the Nasdaq Stockholm stock exchange.

Acquires assets out of Strax GmbH insolvency estate

Interim Report Q2 2024

STRAX has been navigating through very challenging times and finding ways to save the company, if we are able to complete these activities and stabilize, we are then hopeful to be able to use the experience and upside assets to rebuild the company going forward.

The Group’s sales for the period January 1 – June 30, 2024, amounted to MEUR 6.5 (16.6)
with a gross margin of -64.0 (36.1) percent.
The Group’s result for the period January 1 – June 30, 2024, amounted to MEUR -2.7 (-6.7) corresponding to
EUR -0.2 (-0.11) per share.
EBITDA from remaining operations for the period January 1 – June 30, 2024, amounted to
MEUR -2.4 (-3.8).

Equity as of June 30, 2024, amounted to MEUR -76.1 (-12.2) corresponding to EUR -0.63 (-0.10)
per share.

As of June 30, 2024, STRAX is not fulfilling the special conditions in the loan agreement with PCP due to the development of profitability and financial position in the Group. STRAX board and management is working
closely with PCP on a plan to return to compliance of the agreement.

Significant events after the end of the period

Strax Holding GmbH, on July 9, 2024, was notified of a preliminary insolvency proceeding by the court in Bonn, Germany. This initiates a 90-day procedure where the company works together with an administrator to investigate the potential for the business to continue operations as a going concern.
The holding in Strax Holding GmbH has been written down to zero previously in STRAX AB.

“With the divestment of the US assets to Matter Brands we have largely completed the contemplated asset sales
and significantly reduced our interest-bearing debt through those transactions. The task of saving the company
is however not yet completed as we must reduce operating expenses to a bare minimum and improve short-term liquidity, where we are currently evaluating several alternatives.”

Gudmundur Palmason, CEO

About STRAX

STRAX is a global leader in accessories that empower mobile lifestyles. Our portfolio of branded accessories covers all major mobile accessory brands and categories: Protection, Power, Connectivity, as well as Personal Audio. The remaining own brand is Planet Buddies. We reach a broad customer base, through 70 000 brick and mortar stores around the globe, as well as through online marketplaces and direct-to-consumers.

Founded as a trading company in 1995, STRAX has since expanded worldwide and evolved into a global brand business. Today we have approximately 26 employees in 6 countries. STRAX is listed on the Nasdaq Stockholm stock exchange.

Divested own brands consist of Urbanista, Gear4, Clckr and RichmondFinch.

Q2 2024

Moved date for the Q2 interim report to Friday August 30, 2024

The board of directors of STRAX AB has decided to postpone the publication of the Q2 report until Friday August 30, 2024, due to extra time required due to the insolvency filing by the German subsidiary Strax Holding GmbH.

This information was submitted for publication, through the agency of the contact person set out below at 15:10 pm CEST on August 21, 2024.

About STRAX

Founded as a trading company in 1995, STRAX has since expanded worldwide and evolved into a global brand business. Today we have approximately 70 employees in 6 countries. STRAX is listed on the Nasdaq Stockholm stock exchange.

Divested own brands consist of Urbanista, Gear4 and Clckr.

Discontinued operations include Health & Wellness and licenced brand portfolio of adidas and Diesel.

Moved date for the Q2 interim report to Friday August 30, 2024

Notice of preliminary insolvency proceeding for subsidiary Strax Holding GmbH

Strax Holding GmbH was today notified of a preliminary insolvency proceeding by the court in Bonn, Germany.

This initiates a 90-day procedure where the company works together with an administrator to investigate the potential for the business to continue operations as a going concern.

The holding in Strax Holding GmbH has been written down to zero previously in STRAX AB.

About STRAX

Divested own brands consist of Urbanista, Gear4 and Clckr.

Discontinued operations include Health & Wellness and licenced brand portfolio of adidas and Diesel.

Notice of preliminary insolvency proceeding for subsidiary Strax Holding GmbH

Bulletin from STRAX AB’s Annual General Meeting

At today’s Annual General Meeting in Strax AB (publ) it was resolved to adopt the income statement and the balance sheet for the company, as well as the consolidated income statement and balance sheet for the year 2023. Furthermore, it was resolved that the results for the year should be transferred to profit carried forward. The Annual General Meeting resolved to discharge the board members and the CEO from liability.

It was resolved that the number of members of the Board of Directors, for the time until the end of the next Annual General Meeting, shall be three (3) ordinary Directors and no deputy Directors. It was resolved, in accordance with the Nomination Committee’s proposal, that Gudmundur Palmason and Ingvi Tyr Tomasson are re-elected as members of the Board of Directors and that Kjartan Örn Sigurdsson was elected as new member of the Board of Directors, all for the period until the end of the next Annual General Meeting. It was further resolved to elect Ingvi Tyr Tomasson as chairman of the Board of Directors for the period until the end of the next Annual General Meeting. It was further resolved to elect Forvis Mazars AB, with authorised public accountant Samuel Bjälkemo as auditor in charge, and the authorised public accountant Andreas Brodström, also at Forvis Mazars AB, as auditors for the period until the end of the next Annual General Meeting.

It was resolved that the remuneration for the members of the Board of Directors be set at SEK 150,000 each to member of the Board of Directors who is considered to be independent in relation to major shareholders and set at SEK 225,000 to the chairman of the Board of Directors in the event the chairman is considered to be independent in relation to major shareholders. It is thus Kjartan Örn Sigurdsson that shall receive remuneration, whereas remuneration to the Board of Directors shall be paid with a total of SEK 150,000. It was further resolved that the remuneration to the auditor, for the time until the end of the next Annual General Meeting, shall be paid as per current account as approved by the company.

It was further resolved, in accordance with the proposal from the Board of Directors, to authorise the Board of Directors to, up until the next Annual General Meeting, on one or several occasions and with or without preferential rights for the shareholders against cash payment or against payment through set-off or in kind, or otherwise on special conditions to issue new shares, warrants and/or convertibles. However, such issue of shares must never result in the company’s issued share capital or the number of shares in the company at any time, being increased by more than a total of 10 per cent. The previous authorisation to issue new shares and which was given at last year’s Annual General Meeting, was valid up to this year’s Annual General Meeting and has consequently lapsed.

About STRAX

Founded as a trading company in 1995, STRAX has since expanded worldwide and evolved into a global brand business. Today we have approximately 90 employees in 6 countries. STRAX is listed on the Nasdaq Stockholm stock exchange.

Divested own brands consist of Urbanista, Gear4 and Clckr.

Discontinued operations include Health & Wellness and licenced brand portfolio of adidas and Diesel.

Bulletin from STRAX AB’s Annual General Meeting

Interim report Q1 2024

Challenges remain whilst all efforts focus on reducing debt and improving liquidity across the remaining group.

The Group’s sales for the period January 1 – March 31, 2024, amounted to MEUR 4.5 (9.1)
with a gross margin of -14.3 (36.8) percent.
The Group’s result for the period January 1 – March 31, 2024, amounted to MEUR -7.3 (-3.1) corresponding to EUR -0.06 (-0.03) per share.
EBITDA from remaining operations for the period January 1 – March 31, 2024, amounted to
MEUR -7.1 (-2.2).

Equity as of March 31, 2024, amounted to MEUR -62.1 (-9.5) corresponding to EUR -0.52 (-0.08)
per share.

As of March 31, 2024, STRAX is not fulfilling the special conditions in the loan agreement with PCP due to the development of profitability and financial position in the Group. STRAX board and management is working closely with PCP on a plan to return to compliance of the agreement.

Significant events after the end of the period

STRAX entered into an Assets Purchase Agreement with Matter Brands, LLC, formerly Alara Inc, to divest the brands Clckr, Jewel and Fundamental as well as key customer contracts and the majority of the US organization. Matter Brands, LLC, has a strong portfolio of brands including Gadget Guard as a category leader in screen protection, Atom Studios as a category leader in design and sustainability, as well as Alara Technologies, an industry leader holding several global patents in the field of EMF protection.
Matter Brands, LLC, is paying for the assets by issuing new shares corresponding to a total of 40 percent of outstanding shares in Matter Brands, LLC.
STRAX AB, through its subsidiary STRAX Holding GmbH divested its 40 percent ownership of Matter Brands LLC for at total consideration of the equivalent of approximately MEUR 11 to P Capital Partners AB (“PCP”) with a potential future upside for the Group. The consideration of approximately MEUR 11 will be fully assigned towards the outstanding loans under the facility agreement with PCP. The sale will also lead to a capital gain of approximately MEUR 5.
STRAX associated company STRAX GmbH filed for insolvency in May 2024.
Following events this week including the filing of insolvency of the associated company STRAX GmbH on May 28, 2024, the Board have decided to write down shares in subsidiaries in the parent company’s financial statements to zero with effect as of December 31, 2023, as well as write off the value of goodwill in the Group. This change is reflected in the Q1 2024 report as the full year 2023 numbers have been changed compared to what was previously reported in the year-end report for 2023.
Consequently, the Board has further decided to initiate the process of a control balance sheet dated May 31, 2024. The control balance sheet will be audited by the auditors and will be presented at an EGM, according to the process for control balance sheet.
In connection with the insolvency filing of the associated company Strax GmbH that entity has raised claims regarding payment of outstanding receivables towards Strax Holding GmbH. There have previously been agreements how these outstanding amounts would be handled both short and long term, but under the current preliminary insolvency of Strax GmbH it is not clear how this will affect Strax Holding GmbH and thereby the Strax AB Group.

“This year we have continued following the path of reducing our interest-bearing debt through asset sales. It´s certainly been a rough couple of years for us and our short-term objective remains to salvage the company through divestment of further assets and closing businesses via insolvency procedures. We are not out of the woods just yet but do have a restructuring plan in place enabling a future for the company.”

Gudmundur Palmason, CEO

About STRAX

Divested own brands consist of Urbanista, Gear4 and Clckr.

Discontinued operations include Health & Wellness and licenced brand portfolio of adidas and Diesel.

Q1 2024