A message from the CEO, Geir Almås

When SoftOx began to work on its formulations 10 years ago, it seemed far out of reach. It took belief, hard work, and a bit of luck to stomach the uncertainties, downturns, and other challenges, to get to where we are today.
I am here to say today, that through the dedication, and commitment of our team, and the core values we all share, SoftOx is in the best position it has ever been in.
That said, I am equally certain, there will be hurdles on our journey to the top, as we learn to navigate through unprecedented times, as well as exponential growth, as SoftOx matures from its infancy into a well-known brand. It is therefore important to restate that our long-term vision is absolutely on track, and ongoing developments create more confidence than ever before.

We understand that many of our shareholders are frustrated over the robust share price decrease, over the last few days, and take that seriously. It is therefore that we would like to clarify, any parts which may have been miscommunicated, which consequently caused the ripple in the market.
We have done our very best to navigate through these last months, and have onboarded new team members, to ensure that we have the right competencies in the right places and can meet the increased demands. Nevertheless, change does not occur overnight, and we will continue to adjust to new and increased demand from both customers and shareholders.

Below, I will address some very specific items, which I believe require further clarification:
In announcing the recent increases in production, we communicated that it would take time to achieve corresponding sales volumes. Establishing a position in the market with large serious players such as the health care enterprises, pharmacy, and grocery chains, requires time.

We have established production facilities in record time, and under very limited and restricted market conditions due to COVID19 and generated a revenue of NOK 5 million.
This is far better then what is typically expected amongst competitors in the same market space, during a similar time frame, and market penetration.
Further, we have already initiated sales to certain departments of the largest health enterprises in Norway, which is a huge win for SoftOx, as it typically takes years to achieve this level of success. This demonstrates both competence and capability.

To strategically increase sales further, we will participate in the HINAS tender this Autumn (where large product volumes are purchased for hospital use.) Given we are successful, the inception of a significant milestone will be initiated. In line with this, SoftOx will begin to install its dispensers right beside every alcohol dispenser at the Norwegian health enterprises next year.

We believe we will continue to succeed with a rapid market penetration. While we recognize that under the existing circumstances, we could have potentially doubled our revenue from sales, our strategy did not align with what we perceived as a “quick fix” to get there, I.E. price reduction. We believe our product is superior, and do not wish to compete on price point, of readily available (alcohol based) solutions, but rather focus on efficacy of our product, to secure optimal profitability in the long run. Our perspective is, and will continue to be long term, and although we understand the trade-off, we would like to point out, this is a strategic move, and well thought through.
According to external experts, the negative costs associated with today's solutions have been estimated to be ten times higher than the price paid by the hospitals for these products. We recognize the societal consequences, and strive to provide a better solution, however, we recognize that challenging a market leader requires patience, and must be timed correctly.
As previously communicated, the foundation for our product lies in successful completion of clinical studies, confirming our product, does not dry out the skin like alcohol-based products and provides a much broader spectrum in effects.

To conclude, I would like to state again, that we believe that SoftOx is in a stronger position today, than ever before, and look forward to the exciting years ahead of us, on our journey to the top. The market rhetoric following the webinar, and the drop in share prices, we will not speculate on, however it is important that our valued shareholders understand our strategy, as well as the implied challenges of rapid growth, and external factors, and manage expectations accordingly. You have my most sincere commitment to you all, to deliver as much as possible, as quickly as possible, and to continue to lead by delivering superior products. I am also grateful to receive constructive feedback, and take your comments seriously, in evaluating both our successes as well as areas of opportunities, in future decisions. It is my hope that my comments will reinstate confidence, as I truly believe 2020 will be the most historically significant year for SoftOx.

Kilde : https://soft-ox.com/wp-content/uploads/2020/07/Message-from-the-CEO-Geir-Alm%C3%A5s.pdf