Asymptotic approach towards rock bottom…
Or is there still some last straw to be found?
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Yes, there is….. replacing the management quite thoroughly.
Pauli’s brief comments regarding the company’s latest news.
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Valoe has been trying to find a sustainable financing solution for years, but in vain. Long before sliding into restructuring, the company was forced to scrape together its financing from risk financiers like Riverfort, whose extremely expensive funding makes it nearly impossible to build a sustainable business. Even during the restructuring, the company has now had ~10 months to find a sustainable financing solution, but despite hard efforts, one has not been achieved.
Almost all of Valoe’s operations have come to a standstill during the restructuring process. The company has had two production facilities (in Juva and Lithuania), of which the lease for the Juva facility has ended and, based on the restructuring documents, the entire Lithuanian subsidiary “with its industrial machinery and equipment related to solar panel production” was already pledged as collateral for unpaid loans in 2020. Due to Valoe’s problems, the company’s main owner, Savcor Technologies (held by the owner family), went under, and the owner family has thus lost its control of the company. Now, in the latest turn of events, even the administrator no longer believes that a financing solution can be reached. The company’s situation continues to deteriorate more and more.
Just as a thought: If, despite hard efforts, no one has been willing to offer Valoe a sustainable financing solution so far, why would anyone want to offer one in the future as the company’s situation continues to deteriorate?
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A successful company has two pillars: the product and the related expertise, and secondly, competent management. Supporting these is an owner who provides requirements and support. Which of these parts is not working at Valoe?
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Sono continues, but Valoe is not the partner. I wonder who is?
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I agree. The administrator lost faith on October 2nd. It’s already been over three weeks since then. And then a reasonable amount of time after that, in addition to those 10+ months? And years before that. I don’t think we’ll continue on this track into November. The company doesn’t even have an auditor.
The situation is really weak. There are probably over 10,000 shareholders, though, so it’s a significant matter for many. I’ve already braced myself for the fact that this time everything is lost.
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I don’t know why it is that in Finland we are capable of developing good products, but we should know how to hire the right people to take things further. After that, the benefits of the inventions escape abroad.
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“that in Finland we know how to develop good products” This does not apply to Valoe, because Valoe does not have any products of its own. Valoe bought the assets of a Dutch bankruptcy estate that were based on Fraunhofer’s technology, and those panels were not sold, so they were quickly forgotten. Then Valoe bought the scraps of an Italian bankruptcy estate, which were ISC Konstanz technology, namely the Zebra panels. Well, those didn’t sell either, and now Valoe isn’t even trying to sell them. So what is left? The OddForm panel. Valoe doesn’t disclose whose technology these are, though it probably doesn’t matter, as they haven’t been able to sell those either. It is worth remembering, however, that before Valoe bought that Italian bankruptcy estate, ISC Konstanz had already signed a contract with SONO Motors. And only later, once Valoe had started its cooperation with ISC, was that Sono contract transferred to Valoe—so from this, one could conclude that those OddForm panels are also ISC’s and not Valoe’s own design.
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thanks for the info, the question then is whether their products are so shitty or if they just don’t know how to sell them, and how the hell have they been able to hoodwink everyone to get even this far.
The products are good ideas. The biggest problem has been the management, which from the owners’ perspective has been completely wrong for the company’s stage of development. Initially, the owners believed in the company; those who joined later bought lottery tickets, a slice of which a good portfolio also contains.
I bought my ticket and started following the company; the hype carried it, but I didn’t increase my position because management really didn’t inspire confidence. Venture capitalists knew their math; they didn’t provide funding because they actually believed in the company. The whole thing worked because there is no anchor shareholder. Sad is the end of this song, can you guess it…
Valoe’s IBC panels aren’t exactly crap, they’re just expensive. At the top of the “best panels” list published in the spring is an IBC panel, although not ISC-Konstanz’s Zebras but the American Maxeon 7 (oh, I just checked the latest list and the Neostar 3N54 ABC panel had actually jumped to number one). Only one IBC panel made the whole list, as other N-type panels (TOPcons and others) have overtaken IBCs in development, and since they are much cheaper to manufacture, there simply isn’t a market for IBCs. Panasonic and other major manufacturers have already abandoned IBC. A decade or so ago, a rosy future was predicted for IBC, but even then, there was always a note at the bottom: “if they can lower production costs to the level of other N-type panels,” but manufacturers haven’t been able to achieve this cost reduction. Mr. IBC, i.e., ISC’s Kopecek, said in the spring that IBCs will replace other panels sometime around 2028, so even Mr. IBC himself doesn’t believe in their world conquest anymore. Previously, Kopecek was of the opinion that IBCs would take over the market around 2017. Zebras were on that list a year ago, by the way, but even then they were somewhere around rank 20… So if someone does want IBCs now, they won’t buy them from Valoe but these American panels, and if for some strange reason they specifically want Zebras, the Italian FuturaSun sells them, and also some big Chinese P-type/TOPcon manufacturer made a deal with ISC regarding Zebras about a year ago.
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Oh, this was supposed to be published today, but it came out yesterday! 
In July-September 2024, net sales were 0 M€ and operating profit was -0.8 M€.
The restructuring process was interrupted due to delayed financing, and the risk of bankruptcy increases without a solution. Factories closed, but customer relationships and financing negotiations continue. The future depends on a functional financing arrangement. 
Valoe Corporation Business Review 29.11.2024 at 8:20 PM
THIRD QUARTER OF 2024 IN BRIEF
Financial Situation
In July-September 2024, Valoe Group’s net sales according to IFRS standards were 0.0 million euros (0.2 million euros in 2023). EBITDA was approximately -0.4 million euros (-0.8 million euros), operating profit was approximately -0.8 million euros (-1.3 million euros), and the result for the period was approximately -0.9 million euros (-2.1 million euros).
In January-September 2024, Valoe Group’s net sales according to IFRS standards were approximately 0.2 million euros (1.1 million euros in 2023). EBITDA was approximately -1.4 million euros (-2.4 million euros), operating profit was approximately -2.5 million euros (-3.7 million euros), and the result for the period was approximately -2.9 million euros (-5.3 million euros). Valoe Group’s equity ratio, including capital loans, was -55.3 percent (-26.9 %) at the end of the review period.
| 7-9/2024 | 7-9/2023 | 1-9/2024 | 1-9/2023 | 1-12/2023 | |
|---|---|---|---|---|---|
| Net sales | 0 | 185 | 167 | 1 095 | 1 108 |
| EBITDA | -430 | -843 | -1 395 | -2 376 | -3 218 |
| Operating profit | -774 | -1 271 | -2 515 | -3 650 | -4 779 |
| Result for the period | -929 | -2 082 | -2 945 | -5 308 | -6 776 |
Valoe filed for corporate restructuring on December 5, 2023. The District Court of North Savo decided on January 22, 2024, to initiate Valoe’s corporate restructuring proceedings.
The administrator of the restructuring proceedings, attorney Pekka Jaatinen, gave his initial assessment in February 2024, in accordance with the Act on Corporate Restructuring, stating that Valoe’s business has potential that can be rehabilitated through the restructuring process. The administrator considered that the continuation of the company’s restructuring proceedings requires finding an interim financing arrangement. According to the administrator’s preliminary assessment, a feasible restructuring program can be prepared for the company, provided that the company is able to implement a financial or ownership arrangement that can secure the continuation of the company’s business in the long term. After the continuation financing for the company’s business was delayed, the administrator of the restructuring proceedings, Pekka Jaatinen, applied for the interruption of the restructuring proceedings on October 24, 2024, after the review period. The District Court of North Savo will process the administrator’s application for interruption on December 9, 2024. The court’s decision is appealable. An appeal must be filed within 30 days of the decision date. The company’s financing negotiations are still ongoing.
In a challenging financial situation, the company has continued part-time and full-time layoffs of personnel throughout the review period, in accordance with the outcome of the change negotiations held in January 2024.
During the first half of 2024, the company delivered prototype supplies to its most important customers for automotive, electronics, and space technology applications. During the review period, the company’s operations have been halted to conserve cash. However, the company has maintained its key competencies so that operations can resume immediately after a sufficient financing solution is found.
Trading in the company’s shares has been suspended since December 5, 2023, and remains suspended as of the date of this business review.
CEO IIKKA SAVISALO’S REVIEW
As financing negotiation solutions were delayed beyond the summer, the company has cut its costs as much as possible. The company’s factories in Finland and Lithuania have been closed during the review period. Financing negotiations have continued uninterrupted. During the review period, we have held discussions with several domestic and foreign investors. Discussions are still ongoing and are expected to yield results by the end of the year. The company’s most important customers have continued to express their readiness to continue cooperation with us as soon as Valoe’s financial position strengthens. However, a positive outcome of the financing negotiations is not certain. If a financing solution is not finalized in time, the company’s bankruptcy is possible.
VALOE’S FUTURE OUTLOOK
Valoe’s future outlook essentially depends on whether the company can achieve a functional financing solution. Several customers are still interested in using Valoe’s technology, and to our knowledge, the company’s potential competitors have not managed to catch up with our lead. The confused market situation in the European automotive industry, in particular, has slowed down the adoption of solar energy in the sunroofs of well-known car brands, alongside other innovations. The slowdown in development has given Valoe’s sales efforts a timeout, thanks to which the slowly progressing financing negotiations have not unduly disturbed customer relationships, and the opportunities for successful business in the future still exist.
VALOE’S COMPETITIVE ADVANTAGE AND OUTLOOK 2024
Valoe’s competitive advantage is still based on the utilization of back-contact current conductor technology. Solar cells connected to a circuit board provide design and manufacturing freedoms for OddForm panels, which now make Valoe’s solutions superior both technically and economically compared to other solutions. This connection method allows the panel’s current and voltage to be seamlessly adapted to the end product, for example, a car’s electrical system, thus avoiding weaknesses found in other solutions. Valoe’s solutions support even the most innovative solutions of automotive brand designers.
The opportunities for utilizing solar energy in new types of applications have also not disappeared. Many high-value-added solar energy solutions can enable entirely new product applications. In such applications, business can be very profitable.
Market Guidance
Valoe does not provide market guidance for the financial year 2024 due to the corporate restructuring proceedings.
RISKS
Valoe’s most significant risk is the continued delay in securing financing. If financing negotiations are not concluded by the end of the current year, Valoe’s bankruptcy is possible.
Certain statements in this business review, and particularly non-binding estimates related to our strategy, are forward-looking and based on management’s current views. By their nature, they contain risks and uncertainties and are subject to changes in the general economic or industry situation. Risks related to the company’s financial position and financing needs, as well as other risks, are described in more detail in the annual report published on April 28, 2024, which is available on the company’s website at www.valoe.fi.
Mikkeli, November 29, 2024
Valoe Corporation
BOARD OF DIRECTORS
Further information:
CEO Iikka Savisalo, tel. +358 40 521 6082, iikka.savisalo@valoe.com
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Good that material is also coming to Inderes.fi on the weekend. Here is Pauli’s fresh company report after this business review.
https://www.inderes.fi/files/a853eca0-5571-4376-bd2b-d175bdf44999
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We’ll see if there’s even a chance to sell anymore. We’ve been seriously trying to get funding for over a year. I don’t think it will succeed anymore. Was it true that on December 9th we’ll get the final decision?
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“So, on December 9th, will we finally get a definitive conclusion?”
Not even close. The appeal period is 1 month (Jan 8, 2025), the processing time for the appeal will also be one month (Feb 8, 2025), and then a decision on bankruptcy still needs to be made, so we’re well into spring. And it doesn’t end there; the bankruptcy estate will sell Valoe’s stuff to some eager solar cell entrepreneur. Would SALOSOLAR be interested?
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Now the decision has been postponed again by a few months: the next checkpoint is 4.3.2025.
Could it be so fortunate that someone would buy the know-how and production equipment?
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Well, it looks like it. So, at least something can be recovered from one’s own. The court probably didn’t make the decision on very flimsy grounds. Hopefully, we’ll hear more about this before Christmas.
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Here are also Pauli’s comments regarding the financing negotiation matter.
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By the way, the tax authority filed for bankruptcy against SCI Invest yesterday:
SCI Invest belongs to this group of related-party companies that revolved around Valoe. From the same group, Savcor Technologies has already gone bankrupt.
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