Frankfurt – April 29, 2008 – Nanostart AG, the Frankfurt-based nanotechnology investment company, can once again look back over a successful fiscal year. Its annual net income according to German statutory accounting (HGB) totaled EUR 1.4 million, thus roughly matching the level of the prior year (2006: EUR 1.5 million).
With these latest figures, Nanostart continues to be profitable in every year since it began its operating activities in 2004. In addition, the exchange listing of MagForce Nanotechnologies AG has provided further validation of the company’s very high hidden reserves item (unrealized gains).
The net income was primarily attributable to the profitable sale of investment holdings, resulting in a realized gain of EUR 3.9 million (prior year: EUR 2.5m). Most of this amount arose from the private placement of shares in MagForce Nanotechnologies AG, a Berlin-based medical technology company, prior to its listing in the Entry Standard segment of the Frankfurt Stock Exchange.
Even after this transaction and exchange listing in September 2007, Nanostart continues to hold approx. 81% of the shares of MagForce Nanotechnologies. The closing exchange price of MagForce Nanotechnologies as of December 31, 2007, was EUR 57.56, putting a value of approx. EUR 171.1 million on the unrealized gains on the share held by Nanostart as of this date. In total, the unrealized gains on the investment portfolio of Nanostart AG at the end of the fiscal year were EUR 185.9 million (prior year: EUR 15.2 million).
In addition, the portfolio was further expanded during the fiscal year toward the company’s investing objectives. An important strategic step was its investment agreement with Curiox, a life sciences company based in Singapore. With this initial investment in a Singaporean company, Nanostart has established a strong starting position in the Asian market. Furthermore, Nanostart took a stake in NanoGram Inc., a leading nanotechnology company in California’s Silicon Valley which holds a highly promising new technology for the production of solar cells. Together with Nanogate AG, a nanotechnology investment company based in Saarbrücken, Germany, Nanostart entered into an investment agreement with Holmenkol AG, an established producer of nanotechnology-based sports and lifestyle products based in Heimerdingen, Germany, with each of the two partners owning a 50% share. During the fiscal year, Nanostart also increased its shareholdings in Lumiphore Inc. of Redwood City, California, to approx. 21% and in BioMicro Inc. of Salt Lake City, to approx. 9% through additional financing rounds.
In the course of the fiscal year, the company’s net asset value (NAV) was increased to EUR 205.0 million (prior year: EUR 25.1m), reflecting the exceptionally favorable developments during the year.
For the current fiscal year, company management plans to continue the targeted expansion of the investment portfolio, while also anticipating a further growth in the value potential of the existing portfolio.
The company’s annual report for 2007 (in German) will be published in June 2008.
Disclaimer:
This notice constitutes neither an offer to sell nor a solicitation of offers to purchase or subscribe to securities. There will be no public offering of securities of Nanostart AG in conjunction with the existing listing of its shares in the “Entry Standard” segment of the regulated unofficial market (Freiverkehr) on the Frankfurt Stock Exchange. This notice does not constitute a securities prospectus. Neither this notice nor the information contained within is intended for direct or indirect distribution within the United States of America, Canada, Australia or Japan.
Transparency disclosure in accordance with Sec. 17 Par. 2 of the General Business Conditions for the Regulated Unofficial Market on the Frankfurt Stock Exchange.
