RALOS NEW ENERGIES AG 
By Griesheim, 29 June 2011
ralos® New Energies AG, a national and international service provider and project developer for roof-mounted systems and solar farms, has conducted a thorough review of the company’s strategy under the management of its CFO and current CEO Martin Meurer. The core elements of its future orientation will be a robust financial and business structure allowing a constant flow of income, networked, internationally geared sales and (cost) efficient project processes.
In this context, the Management Board has agreed a package of financial measures that will boost the balance sheet by up to €20 million. The significant improvement in all balance sheet ratios this entails will sustainably enhance the company’s ability to act on the capital market and raise funds. At the same time, the scope of operations for acquiring and implementing major projects will begin to broaden considerably.
This package also includes a capital increase with pre-emption rights of up to 320,000 shares at a subscription price of €2.50. These have already been bindingly subscribed to by current shareholders. Optimisation in interest and tax expenses – a profit transfer agreement will also be concluded between ralos Projects GmbH and ralos New Energies AG – and the early repayment of a liability now possible will make positive contributions to earnings and help to improve earnings per share.
Among the other key individual measures taken by the company, it has repaid a loan agreement with Sabeco Management Beratung GmbH in the amount of €2.65 million by issuing 840,000 shares, i.e. at a notional value significantly in excess of the current market price of around €3.15; it has thereby increased its share capital by €1,680,000.Shareholders are also providing long-term financing of €4 million.In addition, current liabilities of around €10 million have been converted into loans and their repayment has been linked to earnings performance at ralos.
Furthermore, the company has already taken a series of measures in its operational areas and initiated sales cooperation talks that should be completed soon. Given the operative standing of the ralos® Group, these cooperations will enable further growth in its project pipeline.
