Dear shareholders,
We have now entered the fourth quarter and would like to provide a comprehensive update regarding the company’s strategic direction, organizational changes, financing efforts, and ongoing disputes. Our focus is on establishing a clearer path forward for DGH International AB, while ensuring that decisions concerning capital, organization, and business development are handled with the highest priority.
Financing and Capital Structure
On October 27 an Extraordinary General Meeting was held to seek authorization for the Board of Directors to increase the company’s share capital—on one or more occasions—through share issues without preferential rights for existing shareholders. The objective is to enhance the Board’s flexibility in restoring the company’s shareholders’ equity, which was found to be consumed with over 50 % in the control balance sheet prepared as of February 28. The General Meeting approved this authorization and it will remain in effect until the next Annual General Meeting.
Strategy and Business Development
As previously communicated, we have now held our first strategy meeting together with Daro Group UK. The purpose was to define the path forward and establish a shared understanding of priorities, investment requirements, and potential areas for growth. During the meeting, we reviewed Daro Group’s three divisions: Infection Prevention, Specialist Lighting, and Contract Manufacturing. Topics for discussions, included, international expansion, financing needs, and matters related to personnel, organization, and corporate governance.
DGH’s former operations within dosimeters are being evaluated under the leadership of Michael Massaro (Technical Lead for Infection Prevention). The assessment is that there are commercial opportunities to re-establish these operations, though this would require significant investment in marketing, communications, quality assurance, and production capacity.
We will provide a more detailed description of Daro Group’s three divisions later this autumn.
Organization and Administration
The reorganization of DGH International AB has now been completed. Since the new Board of Directors took office in February, all of the company’s former employees have either been laid off or are currently serving out their notice periods. Intellectual property rights and remaining stocks of dosimeters have been transferred to Daro Group UK, marking a clear transition toward a more focused and cost-effective structure.
We also intend to integrate our various websites to facilitate a more effective communication with our shareholders and external stakeholders.
Georgina Pluck, CFO in Daro Group UK, will lead the transfer of DGH’s day-to-day administration to Daro Group’s office in Sudbury. This will be done in cooperation with an external resource in Sweden with a background in accounting and audit. This transition is expected to be completed during the second half of 2027.
Ongoing Disputes
Concerning the ongoing arbitration with HCM, the outcome is expected to be announced on July 9, 2027. We will provide further information once there are formal decisions.
Regarding the fine from the Swedish Economic Crime Authority and State Prosecutor Thomas Hertz, no new developments have emerged since the news that the seizure of assets was lifted in early September.
Our investigations into pursuing claims again former suppliers and former representatives of the company is ongoing. We expect this analysis to be completed before the end of the year.
We are working to build a more stable platform for DGH International AB. Our focus the coming months, will be on fine tuning our capital structure, continued integration of Daro Group UK, and follow-up on legal and administrative matters. We will keep you, our shareholders, informed of significant decisions and progress.
Finally, I would like to thank our CFO, Henrik Resmark, for our collaboration during this intensive period, as he will be leaving the company in December.
On behalf of the Board of Directors,
Fredrik Olsson
Chairman of the Board
DGH International AB
Daro Group UK