EV Digital Invest AG updates forecast for 2024 and places convertible bonds

EV Digital Invest AG updates forecast for 2024 and places convertible bonds

• EV Digital Invest AG updates EBIT forecast for 2024 to between EUR -3.5m and EUR -4.1 million
• Based on the updated financial planning, there is a capital requirement, which will be covered by the issuing of convertible bonds. Majority shareholder subscribed the first convertible bond and an obligation to subscribe to the second one
• Key strategic measures successfully implemented in 2024 – acquisition of the ECSP licence, introduction of the deposit account, successful launch of the first solar financing project, which was fully financed within just a few minutes

Berlin, 30 May 2024. EV Digital Invest AG (ISIN: DE000A3DD6W5), operator of the two online investment platforms ‘Engel & Völkers Digital Invest’ and ‘Digital Invest Assets’, expects the effects of the historically unprecedented real estate crisis to be felt for longer than previously expected. The company is therefore lowering its forecast for 2024. Based on the updated financial planning, there is a capital requirement that will be covered by the placement of two convertible bonds, which will be subscribed by the majority shareholder. By successfully diversifying its product portfolio, EV Digital Invest AG is laying the foundations for sustainable and broad-based growth as soon as the recovery in the property market becomes clearly noticeable. The aim is therefore to continue to orientate the company towards sustainable profitable growth in a market environment that remains challenging.

Marc Laubenheimer, CEO of EV Digital Invest AG, explains: “The current market situation poses major challenges for all companies related to the property sector. However, our vision remains intact: we want to become a multi-asset platform that enables our clients to invest from one Euro to several million Euros in a wide range of risk classes. We are pleased that our majority shareholder shares this vision and is providing the capital required to realise it. We are confident that our new products have been well received by our customers. Our deposit account product got off to a good start and our first solar financing project was fully placed within a few minutes. This gives us confidence for the future.”

Update forecast and cover capital requirements
Due to the ongoing difficult market phase, the company expects income¹⁾ of between EUR 2.3 million and EUR 2.7 million for 2024 (2023: EUR 4.5 million). EBIT of between EUR -3.5 million and EUR -4.1 million is planned for the 2024 financial year (2023: EUR -3.7 million). The previous forecast for the 2024 financial year envisaged an increase in income of 10 to 30 per cent compared to the previous year, with an improved EBIT of up to EUR -1.9 million.

At the same time, various measures are being taken to reduce total costs to between EUR 5.8 million and EUR 6.6 million. The Management Board already took cost-cutting measures in the first quarter of 2024, enabling total costs to be reduced by more than 10% in the first three months of the year compared to the financial planning.

However, in this context, an additional capital requirement was identified. This will be covered by the placement of two convertible bonds with a total issue volume of EUR 2.5 million. For this reason, the company decided today to issue a first convertible bond with a nominal amount of EUR 1.1 million. This was subscribed by the majority shareholder. In addition, the majority shareholder has undertaken to subscribe to a further convertible bond with a nominal value of EUR 1.4 million, which is to be issued after the upcoming Annual General Meeting. Shareholders' subscription rights have been or will be excluded. The conversion price is EUR 3.25 per share, emphasizing the majority shareholder's continued committment to the company's long-term development. The term of the convertible bonds is 2 years. The bonds are subject to qualified subordination.

Karl Poerschke, COO of EV Digital Invest AG, explains: “In addition to the planned stabilisation of revenues, we have already taken initial steps to reduce costs. We will continue to intensify these efforts. With this concept and the successful introduction of new products such as the ‘ECSP loan’ offer, our deposit account product and solar projects, we were able to convince our investors.”

About EV Digital Invest AG
EV Digital Invest AG, license partner of Engel & Völkers Marken GmbH & Co. KG, offers investors a broad range of products and services on its digital investment platforms across various asset classes – from real estate investments in various asset classes, a deposit account and ETFs to holistic wealth management. Under the two brands ‘Engel & Völkers Digital Invest’ and ‘Digital Invest Assets’, investors can invest from one Euro to several million Euros – with or without real estate focus. With a sustainable and quality-focused business strategy, the company has a strong positioning in attractive growth markets.

Under the “Engel & Völkers Digital Invest” brand, investors are given the opportunity to participate in selected real estate projects as co-investors. As a quality-leading platform in the field of digital real estate investment and financing, as well as part of Engel & Völkers' global licensing partner network, it enjoys exceptionally high brand recognition. EV Digital Invest AG has financed real estate projects with over EUR 248 million in investment volume.

Under the brand “Digital Invest Assets”, the company also offers digital investment opportunities unrelated to real estate. The offering includes a deposit account, efficient ETF portfolios for general wealth preservation and growth as well as individual investment solutions – tailored to the needs and goals of wealthy clients/investors.

More information:
www.ev-digitalinvest.de
www.digitalinvest-assets.de

EV Digital Invest AG
Licence partner of Engel & Völkers Marken GmbH & Co. KG
Joachimsthaler Str. 12
10719 Berlin
www.ev-digitalinvest.de

Contact:
Kirchhoff Consult, Jan Hutterer
Borselstraße 20, 22765 Hamburg
Phone: +49 40 60 91 86 65
E-mail: ev-digitalinvest@kirchhoff.de

1) Income is made up of the following items in the income statement: 1. sales, 2. other operating income, 3. other interest and similar income.