• secures additional investment capital in Loft
• partially repays existing debt
Loft’s Rooomy launch planned for April 2015
NedSense enterprises n.v. (“NedSense”) subsidiary Loft announces that it will launch a first version of its Rooomy platform in April 2015.
Rooomy connects home furnishings retailers and the real-estate community with consumers at the moment they are considering a home purchase or property rental, creating a new sales channel for brokers, developers and retailers. Real-estate brokers and property owners can use Rooomy by subscription to virtually stage their listings at low cost with furnishing products from participating brands. Rooomy’s virtual staging technology is a breakthrough for the real estate industry; where it is widely acknowledged that staged properties sell better. In turn, consumers can view 3D room environments of real estate listings in Rooomy, and re-decorate them in a few clicks with furnishings from participating brands. Over 15 leading US retail brands have already signed on as affiliates, making their products available for ‘e-decoration’ and promotion in the Rooomy app. The company will be working with leading real estate companies in the US to beta test Rooomy in the coming months.
Large shareholders invest additional EUR 800,000 in company
Nantahala and Bertoia, two existing shareholders in the company, have agreed to invest additional capital in the company to provide additional growth capital for Loft’s growth of the Rooomy platform.
The investment will be structured as subordinate bond that pays no interest, is due in June 2020, and is convertible to equity at price of EUR 16ct. The Convertible Bond is subject to the approval by the general meeting of shareholders of NedSense. It is envisaged that the Convertible Bond will be discussed and put to vote during the annual general meeting of shareholders of NedSense to be held on 9 June 2015 (the “AGM”). NedSense’s major shareholders including Project Holland Fonds, Todlin, Bertoia and Nantahala, together representing approximately 59% of NedSense’s issued share capital, have already confirmed that they will support the Convertible Bond and to vote in favour of the transactions contemplated thereby.
Partial repayment of existing bondholders through NedGraphics proceeds
NedSense also announces that it has accelerated the repayment of its existing debt financing providers. As indicated in its press release of 25 August 2014, part of the proceeds of the sale by NedSense of its NedGraphics business would be used to reduce debt. NedSense has reached agreement with Rijksdienst voor Ondernemend Nederland (RVO) on a repayment of EUR 900.000 on the innovation credit granted by the Dutch government to NedSense. The redemption is additional to the redemption scheme that was determined after the innovation project was delivered successfully in July 2014.
In addition NedSense has reached agreement with certain of its major subordinated convertible debt financing providers on a partial repayment and refinancing thereof. In this context NedSense has agreed to repay EUR 1,700,000 (plus accrued but unpaid interest thereon) of this subordinated convertible debt financing.
2014 Financial results
NedSense’s revenue, excluding NedGraphics, for the full year 2014 equals EUR 479k, a decrease of EUR 343k versus 2013. The decrease in revenue in 2014 is due to the company transitioning away from customized implementations of LOFT [and one-off license fees], to focus on the development of Rooomy [based on a subscription and referral fee model] and the related generic version of LOFT. Mainly as a result of increased professional fees, NedSense’s operating expenses excluding NedGraphics, increased by approximately 4% resulting in an operating result of approximately EUR -2.7 million. Including the divested NedGraphics division, NedSense’s operating result in 2014 is almost unchanged from 2013. The financial results are preliminary subject to final adjustments. On 23 April 2015, NedSense will publish its full 2014 annual report.
About NedSense
The NedSense portfolio is focused on the 3D customer experience solution LOFT. The LOFT suite allows brands to combine the physical stores with the virtual world, by creating a 3D virtual playground from a photograph of a room. The cloud based platform Rooomy provides a new sales channel for both home furnishings retailers and the real estate community, utilizing proprietary interactive 3D technology developed by LOFT. It is also the first business platform that connects the two sectors to help them reach consumers at the precise moment when they are considering a home purchase or property rental.
NedSense is listed on NYSE Euronext Amsterdam [NEDSE]. More information is available on www.nedsense.com, rooomy.com and www.loft-nedsense.com.