As you probably know, our main distributor in the United States has been in default for a year now. Not only did it stop all orders, when it represented more than 35% of the group’s sales in 2017, it also left a significant arrears. Spineway had to find a financing solution in order to be able to continue its activity in the medium term.
After having considered and studied all the possibilities, Spineway then turned to the Alpha Blue Ocean fund through bond tools called OCEANE. These OCEANEs have enabled us to continue our activity and initiate our project of rapprochement with hospitals in Colombia and Africa.
However, this financing had a strong downward effect on the share price. Indeed, this fund profile is not intended to keep the securities over the long term. As he converts his bonds into stocks, he resells them on the market fairly quickly, resulting in downward pressure if there are not enough buyers in front.
We are aware that the shareholders of Spineway and first of all Mr. Leroux the CEO, who was the main shareholder, can only be disappointed by the current evolution of the stock market price but we are currently working to rectify the business and for this merger ambitious to generate value in the medium term, and become a model for other acquisitions.