High valuation: Summa Defence has been assigned a valuation of 185 million euros, even though its revenue in 2024 was 49.5 million euros and its operating profit (EBITDA) was negative.
Related-party transaction: Meriaura’s marine logistics business is transferring back to private ownership for a purchase price of 14.4 million euros, which raises questions about its true value.
Key individuals: The key individuals behind the project have previously brought similar arrangements to the stock exchange (e.g., Wetteri, Skarta/Nyab), which have involved high growth expectations and rapid movements.
Unusual valuation discrepancies: The estimated value of Meriaura’s marine logistics has varied significantly at different stages (48 million euros vs. less than 20 million euros), which creates uncertainty for investors.
Same dilemma as Kahvifreak. Over 100% increase in value… maybe I should recoup the purchase price and see with the remaining shares how far the bubble inflates before it bursts.
I had to ditch them, as I had no faith in what the company was doing. It was probably still up by about 110%, though. Let’s see after the shareholders’ meeting if we can generate new hype from lower levels again, once the name becomes more catchy.
Same here, the change of cents into euros has been waited for almost 10 years now… well, maybe now there’s some hope… my almost 19 thousand shares are eagerly awaiting the change
According to the announcement, 35,429 Summa Defence shares have been purchased from each, totaling 106,287 shares. The purchase price is approximately 0.94 euros per share, totaling almost 100,000 euros.
According to the announcement, in the share exchange, 3Lions subscribes for a total of 4,999,998 Meriaura Group shares, which will be subject to an 18-month transfer restriction from the implementation of the share exchange.
This is positive news for this company, but the current share price of €0.08 makes one wonder a bit. Compared to the current price, Arto gets the shares at a huge discount if he only pays €100k for 5 million shares. At the current price, the same amount would cost almost €400k. Of course, there is an 18-month transfer restriction, so no quick profit can be made.
Summa Defence’s 500 million euro revenue target sounds ambitious, especially since the 2024 outcome was significantly loss-making: an operating loss of approximately 10 MEUR before depreciation and a final loss of as much as 37 MEUR. At the same time, strong growth and profitability are communicated externally.
Now, Sybimar is being acquired through a share exchange, a circular economy company that has previously focused on drying for fish farming and greenhouses – very far from the defence sector. It feels like Meriaura’s owners’ own investments are being moved into the group with their own shares.
There are also contradictions related to the financing: there is talk of 28 MEUR capitalization, but at the same time, one of the main owners, Koskela, is in enforcement for 370,000 €. So where do those millions concretely come from?
Lightspace, highlighted as a flagship, has practically been on the verge of bankruptcy – financing received through Summa saved it. Now there’s talk of AI-AR glasses for battlefields, even though revenue has been only 400,000 € per year and no customer has been named.
In addition, fresh financial statements are not available from several group companies (e.g., Lännen Tractors, Aquamec, MCE AB). The question arises as to how the company’s due diligence has been performed and in what condition the financial administration is, when aiming for a stock exchange listing.
The market still doesn’t seem to have woken up to the outrageous valuation. When considering the entire share capital created in the merger, in the shoes of the entity owning Meriaura Group’s original shares, the market cap is now hovering around 650 million. Someone might consider a 5x forward sales valuation quite high for a seller of boats and tractors.
