OmniCar Provides Corporate Update
OmniCar Holding AB ("the Company"), a technology solutions provider empowering the auto industry, today provided a corporate update.
In October 2022, OmniCar communicated a strategic shift to focus solely on OmniCarService. Our results and pipeline for growth have been strong with results year to date showing a revenue increase more than 100% vs. the same period in 2021 which in connection with our increased focus on cost as well as new collaborations, such as that previously announced with XPeng, giving us a clear path towards profitability.
OmniCarSales, the Electric Vehicle Sales platform, did not develop in the positive direction we expected during 2022. Our efforts to reduce the operating cost have taken longer than anticipated, putting a pressure on our liquidity. We continue to review the cost structure, existing agreements, and governance as we take the steps necessary to move OmniCar forward in its new direction.
Additionally, Claus T. Hansen, our former Chairman who stepped down in October, and left the board on the 9th December, has claimed that he is entitled to 1.7M DKK related to a payment for the period of 1 November 2022 – 31 October 2023. The Board of Directors does not agree with the claim and has decided not to make the payment. The other party’s lawyer has stated that we can expect to receive a statement of complaint following our rejection of the claim. No other board members receive remuneration.
Chairman Petra Bendelin stated, “Despite the turbulent period we are confident in the OmniCar growth strategy, and the plan management has put into place for 2023. With over 2,000 5-star reviews, OmniCar has an established brand as your convenient car partner for life, one that will drive continued growth in the years ahead.“ OmniCar previously disclosed an invitation for an EGM where the company seeks a resolution to amend its current authorized shares outstanding ‘not less than 75,000,000 and not more than 300,000,000.’ “We see a need to have the possibility to increase our capital base. We intend only to use a limited portion of the asked increase to reach break-even giving us head room to support future expansion.
As the new Chairman of OmniCar, I look forward to contributing and assisting CEO Mikkel Kofod Christensen and the team in refining our growth strategy with a clear focus on expansion. For me, a solid governance, a clear vision supported by a sustainable strategy delivered by a dedicated team is important, and foremost, that we deliver on our promises. In the early part of 2023, we will invite our investors to hear more about our strategy, as well as sharing details on our objectives going forward.”
About OmniCar Holding AB
OmniCar Holding AB creates technology solutions that empower the auto industry. The company launched OmniCarService in 2020, Denmark’s first mobile car service platform. As part of this service, the company has developed an industry leading IT system which offers a real time price generator, CRM system, a geo-planning tool, and an integrated parts ordering system. Additional information about OmniCar Holding AB may be found on its website: https://www.omnicar.com/
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