Spinnova

Spinnova appears to have made significant progress in the second half of the year in reducing the production and investment costs of its technology.

At first glance, the company appears to have made progress in reducing the production and investment costs of its technology, but the remaining time until a commercial breakthrough is very difficult to estimate, even in light of new information.

In the report, we are particularly interested in comments on the progress of strategy execution, the development of the technology's cost-competitiveness, and the role of the consortium being built around the fiber.

Spinnova and international fashion company BESTSELLER are expanding their collaboration as JACK & JONES introduces new products made from SPINNOVA® fiber to its collection.

Spinnova announced on Tuesday that it had signed a letter of intent with the Brazilian techwear brand INSIDER.

The aim of the agreement is to ensure the future availability of SPINNOVA® fibers and to support the industrial adoption of the fiber.

We believe this new brand partnership is a positive addition to Spinnova's network of partners and will support the long-term outlook for demand of fiber produced using the company's technology. However, we do not believe that the agreement will have a significant financial impact in the near future. Reducing technology investment and production costs and identifying technology investment partners continue to play a key role in the company's commercialization efforts.

We have not made any material changes to our forecasts for the commercialization progress of Spinnova's technology following the company's H1 report. Due to the exceptionally difficult-to-assess risk/reward ratio, we are maintaining a cautious stance on Spinnova for the time being.

Spinnova released its H1 report this morning. For a development company like Spinnova, short-term numbers are of secondary importance, so our attention in the report was particularly drawn to the comments on technological development and the new strategy announced in June. On this note, the company provided reassuring news yesterday when it announced that it had signed agreements with Suzano regarding the purchase of Woodspin and Suzano Finland, as well as other matters related to the arrangement (incl. the removal of exclusivity rights and Suzano's 5 MEUR capital contribution to the purchased companies) in accordance with the letter of intent announced in June. Overall, based on our preliminary assessment, the report does not contain any significant surprises in relation to market expectations.

In the H1 report, we will pay particular attention to the comments regarding the new strategy, and we are also interested in the timeline for securing the letters of intent agreed upon with Suzano.