CHANGES IN MANAGEMENT AT TERRANET WITH DECISION TO PROMOTE GREATER EFFECTIVENESS
Terranet continues to develop its relationships with global clients and partners, but sees that revenues from licensing deals are projected to be further out than previously anticipated. The company has thereby decided to cut costs by 40% to provide it with the runway required to reach licensing revenues. Cost-cutting measures will be in full effect towards the end of Q4 2018. As a result, the core business, based in Lund, Sweden, will operate as a smaller unit while some project resources, will be outsourced to partners, such as an existing cooperation with a partner in India.
Terranet develops and sells software for the offline communication between people, vehicles, mobile devices and machines. The software is designed to be integrated into products of companies with a global footprint, and it is typically once they reach the market that Terranet receives licensing revenues. As Terranet’s products are designed for mass production, customers first have to carefully evaluate, test, and together with the company, tailor the technology to meet their customers’ needs. Following such an evaluation period, products are then scheduled for completion and launched on the market after which revenues can be expected. These stages have proven to take longer than previously anticipated, leading to Terranet making the necessary adjustments to its organization.
Terranet’s Chairman, Christian Lagerling, has announced that he plans on resigning from the company’s board. The Board has today decided to propose Fredrik Hedlund as new Chairman of the Board, and will present this proposal at the Extra General Meeting on 27 July, 2018. Christian Lagerling was originally recruited to the Board in May 2016 to facilitate the company’s planned listing on the Nasdaq First North. With Terranet having completed its IPO last year, Christian sees his work with Terranet as now complete and welcomes a chairman with extensive commercial industry expertise as being the new energy required for the company’s next phase. Fredrik Hedlund currently holds a leading position at Northvolt, which is responsible for running a multi-billion SEK project with a new battery factory in Skellefteå. Previously, Fredrik Hedlund served as a strategic manager at Sony Mobile.
Current CEO Pär-Olof Johannesson has a broad global network of contacts. The Board of Directors will propose to the General Meeting that Pär-Olof be elected to the Board. It is proposed that as Vice Chairman, Pär-Olof will play an active role in developing global business, which is important to generating new licensing agreements as well as structured deals.
Terranet’s current VP of Engineering, Ola Samuelsson, will be appointed as the new CEO in connection with the General Meeting. Ola takes on the role with a solid knowledge of technology, and will manage the business with a focus on reaching licensing deals where Terranet sees the strongest potential.
It is the Board’s assessment that the aforementioned changes will strengthen the company during a time where perseverance and focusing on licensing deals is integral to reaching substantial revenues that one can expect Terranet’s future licensing deals to provide.
For more information contact:
Fredrik Hedlund, proposed new Chairman of the Board
Christian Lagerling, outgoing Chairman of the Board
Ola Samuelsson, CEO (to be confirmed at the GM)
Pär-Olof Johannesson, Deputy Vice Chairman of the Board (to be confirmed at the GM)
investorrelations@terranet.se
+ 46 70 332 32 62
ABOUT TERRANET
Terranet develops software and holds patents that enable offline communication between people, mobile devices, and machines. Terranet’s head office is located in Lund, Sweden with established sales and marketing agents in the US, China and India. Terranet Holding AB (public) is listed on Nasdaq First North Premier.
www.terranet.se