RightBridge Ventures Group AB: RightBridge averts further investment in Tricked resulting in foreclosure decision
As previously announced, Tricked ApS' board of directors and management have conducted a complete review of Tricked ApS ("Tricked" or the "Company") to create conditions for continued operation. During the period, the company has significantly reduced its costs, but the Board, shareholders and management have stated that continued operation without major investments is no longer feasible resulting in the decision of bankruptcy filing. Board, management and shareholders have therefore decided no further support the company financially for continued operations. Tricked's owners and board of directors have therefore declared the Company in bankruptcy. The decision means an impairment in the balance sheet of RightBridge Ventures Group AB ("RightBridge" eller "Group") linked to when the Company was acquired. Furthermore, this also means a cost reduction and improved liquidity, which Rightbridge's Board of Directors and management have taken into consideration.
During the last months, the local market conditions and the Company's baseline have changed and RightBridge therefore chooses to focus its funding on more profitable projects. The decision will have a material impact on RightBridge's and the Group's financial results during the second quarter of the year. The estimated impairment loss in the balance sheet is non-recurring and linked to when the Company was acquired. It will also affect a decrease in sales attributable to the Company's operations and at the same time a significant cost reduction for the Group. This will improve the Group's liquidity and earnings.
Intensive work has been ongoing within Tricked during the autumn, as well as during the first quarter of 2023. For Tricked, the market has fluctuated with reduced demand as a result for their gaming centre activities, and even though the cost base has been lowered, the right conditions are no longer in place for continued operation. The filing for bankruptcy follows a further analysis that has shown that the necessary investments required to continue the business in the long term with profitability are not economically justifiable.
At the same time, RightBridge can state that the problem is isolated to this subsidiary and that the other businesses continue to develop in line with expectations. We continue to work with Tricked and will return with further information. RightBridge is the largest creditor of the Company and will now review various alternatives with the future manager.
"At the same time as we receive several large deals within RightBridge, such as the recently announced deal with companies in the Middle East that occupy resources through delivery, we have continued to work on the transformation of Tricked. However, we see a problem in how the market has developed and in the Tricked offline business model in this particular current market. It is also important that RightBridge as a company has a cost perspective in its portfolio companies, even if the decision is tough to make, the result for the entire group will improve in the long run with the decision. " - Carlos Barrios, CEO RightBridge Ventures group AB
This information is inside information that RightBridge Ventures Group AB (publ) is obliged to make public according to the EU's market abuse regulation. The information was provided through the above contact person, for publication on 12 April 2023