The Social Chain AG: Dr. Georg Kofler designated new CEO
- Written by The Bulletin
- Dr. Georg Kofler will take over as new CEO of The Social Chain AG as of January 1st, 2023
- Current CEO Wanja S.
- Oberhof becomes President of Social Chain US Inc. and focuses on the expansion of the US business
- Ralf Dümmel takes over sole management of DS Group
- Costs are reduced by 30 percent: through synergies, cost cuttings and a more efficient organizational structure
- Successful refinancing: working capital financing of EUR 125 million secured for three years
- Dr. Georg Kofler declares subordination, creating EUR 36 million of additional equity
BERLIN, GERMANY - EQS Newswire - 16 November 2022 - Dr. Georg Kofler will take over as CEO of The Social Chain AG as of January 1st, 2023. The current CEO, Wanja S. Oberhof, will chair the management of the US business as President of Social Chain US Inc. and will be additionally responsible for all Group M&A activities. Ralf Dümmel will fully focus on the sole management of the DS Group with immediate effect and will therefore resign from his position as management board member.
Photo (left to right): Wanja S. Oberhof, Dr. Georg Kofler, Ralf Dümmel. Credit: The Social Chain AG/ Boris Breuer/ Stefan Groenveld
In its new structure, The Social Chain AG is managed by Dr. Georg Kofler as CEO and Andreas Schneider as CFO. Henrike Luszick and Henning Giesecke will continue to serve as members of the Supervisory Board of The Social Chain AG. A third member of the Supervisory Board will be announced shortly.
Cost reduction of 30 percent
The Social Chain AG is cutting its costs by 30 percent. The cost reduction will have full effect in the 2023 financial year: It will be achieved through synergies, significant savings in HR and structural costs and more efficient organizational structures throughout the group. With these changes, The Social Chain AG is responding to the challenging market environment and thereby ensuring its entrepreneurial options for the future.
Financing structure of Social Chain AG significantly improved:
Working Capital financing of EUR 125 million secured by a bank consortium for three years. EUR 25 million acquisition loan repaid.
DS Group, a 100% subsidiary of The Social Chain AG, successfully closed a working capital facility of EUR 125 million with a bank consortium. The credit facility has an initial fixed term of three years with the contractual options to prolong.
In addition, Dr. Georg Kofler contributes to the company's equity by subordinating shareholder loans totaling EUR 36 million.
Furthermore, The Social Chain AG repaid EUR 25 million of the existing acquisition loan for the purchase of DS Group.
As a result, The Social Chain AG significantly improved its financing structure: Overall, current financial liabilities were reduced from EUR 197 million to EUR 35 million. Non-current financial liabilities increased from EUR 114 million to EUR 233 million.[1] In total EUR 44 million financial debt has been repaid, while the current financial liabilities have been reduced by EUR 162 million.
Quote Dr. Georg Kofler:
"As an entrepreneur and anchor shareholder, I am committed to the business model of The Social Chain AG. As we all know the current market environment is really challenging. Many times in my professional career I have experienced and proven that under the pressure of crises new business opportunities arise. Our team, our business partners and our shareholders can be assured that I will bring in all my entrepreneurial energy and experience to lead the Social Chain AG into a profitable and sustainable future."
Quote Wanja S. Oberhof:
"As co-founder of The Social Chain AG, it was always my intention to build an international company. I realized that only a crystal clear focus on internationalization can lead to success, which I could not execute in my role as CEO. I am excited that my long-time business partner Dr. Georg Kofler is taking over the position of CEO, enabling me to fully focus on the expansion of the international business."
Quote Ralf Dümmel:
"My core strength is the direct operational business: rolling up my sleeves, sourcing products, driving innovations and orchestrating and executing the omnichannel sales of our innovative product portfolio – that's my life. The new structure of the Management Board allows me to dedicate all my energy to reach the maximum impact on sales and product innovation."
The content of this press release is for information purposes only and does not constitute investment advice or other recommendations pursuant to the German Securities Trading Act by The Social Chain AG or its affiliated companies. The information provided cannot replace investment advice. The information contained in this press release is not to be construed as an assurance of possible price developments and should not be construed as a request to enter into a transaction. The information contained herein does not constitute an offer to sell or the solicitation of an offer to sell securities or rights, or a solicitation to trade in securities or rights. Accordingly, The Social Chain AG and its affiliates make no representations or commitments as to the accuracy, completeness or correctness of the information or opinions contained herein. We assume no liability for direct or indirect damages caused by and/or in connection with the distribution and/or use of this document. The statements correspond to the status at the time of the preparation of this document. They may become obsolete due to future developments without the document being changed.
[1] These are ACTUAL figures as of 31.12.2021 compared to the reported numbers of 30.09.2022, the latter assuming full closing of the credit facility that was signed on 10.10.2022.
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The issuer is solely responsible for the content of this announcement.
