Dear Smart Containers Community
Please find hereafter an update on the company's progress in the third quarter of 2020.
The COVID-19 pandemic has turned the world as we know it upside down. The pharmaceutical industry is racing to find a vaccine against this impactful virus, while supply chains get ready to distribute them at large scale. This is a mammoth task: these vaccines will be needed at an unprecedented scale within the shortest possible time frame. On top of it, they will be temperature sensitive, which will require transportation in a controlled cold chain environment – a task that SkyCell is well positioned to support.
Despite the logistical challenges caused by disruption to airfreight, SkyCell performed extremely well. Like many other companies who are critical suppliers in this time of uncertainties, SkyCell had to adjust its operations continuously to the changing environment, for example introducing a 24x6 operation. Despite all the hurdles, SkyCell was able to maintain the exceptional quality level it set to provide. All deliveries in this year have been processed in perfect condition, without temperature excursion and delivery on time. This has been audited again, 3rd year in a row with the result of less than 0.1% temperature deviation. SkyCell remains the only company that gets audited and publishes its performance. The industry feedbacks indicate that SkyCell is the leader in regard to quality by a distance.
EU Commission & Swiss Government assign SkyCell as critical supplierThe Swiss Government as well as the European Commission have put SkyCell on their list of critical suppliers. This means that SkyCell containers can cross borders also when they are closed. This is part of the green lane program for critical suppliers in the COVID-19 pandemic.
Sales growth on track
When it comes to sales, SkyCell has developed positively. Despite the economic slowdown,
SkyCell’s revenue is on track for a 70% YoY growth. This figure doesn’t include yet the shipment of vaccines needed to fight COVID-19, which we expect to have a major impact on SkyCell sales figures.
The growth financing round that SkyCell closed in April this year has allowed the company to extend the team with special focus on sales representatives in the U.S., Australia, Italy, China and South Korea. While we continue to hire, the team has grown to over 120 members worldwide. We are proud to see seasoned, high potential professionals join SkyCell despite the uncertainties of an economic downturn on the horizon. It proves that our reputation on the market is solid and that more and more industry experts recognize SkyCell’s growth potential.
Major milestone: partnership agreement with the world's second largest cargo airline Quatar AirwaysOur partnership with Qatar marks a new period of growth and sustainability. Ensuring increased access to self-charging, sustainable hybrid containers, the deal fosters new progress in our industry and prepares pharma shippers to efficiently safeguard COVID-19 vaccines ahead of a global distribution. Read our full press release [here](
http://apps.skycell.ch/qatar-airways-cargo-signs-agreement-with-skycell-for-hybrid-pharma-containers/). SkyCell is continuing to build up additional partnerships.
Outlook
While the economic outlook remains uncertain, we believe that the numerous initiatives in developing a COVID-19 vaccine will culminate in cooperation on all levels to tackle this virus. We as SkyCell prepare to contribute to this task with the expertise and know how we’ve built in the last 8 years.
Token UpdateAs you are all aware, listing a security token is a challenge, which leaves us with an unsatisfactory situation on all fronts. In the last couple of months, we have explored the best way forward for the company and our token holders.
As SkyCell prepares for future options such as a potential stock market listing for example on NASDAQ, tokens need to be exchanged for a traditional financial instrument, which has the same economic character to the token.
The solution after intense elaboration with corporate attorneys and tax attorneys is to offer
our token holders the opportunity to become dividend rights certificate holders (“Genussschein”). This gives token holders the same economic benefits as the token today.
As mentioned in the white paper, Smart Containers may exit via a trade sale or stock listing. Through this simplification we are prepared for both options. This move will provide token holders with an equity instrument, fully regulated according to Swiss law and with clear rights to receive dividends and exit proceeds.
We will therefore run a swap offer that will start in 1-2 weeks. It will allow you as a token holder to swap your tokens into dividend rights certificates.
The swap offer refers to SMARC only. LOGI tokens are issued by the LOGI CHAIN foundation which is a different entity. It is our aim to find a good solution with LOGI tokens as well before the end of the year. We will update in a few weeks how we aim to proceed.
To participate in the SMARC token swap, token holders will have to self-onboard via App, perform a KYC and send their SMARC tokens to a personalized burn address. Once we will start the token swap procedure, SMARC token holders will have three weeks to complete the swap. We thus recommend getting your wallets ready and making sure you have a small amount of ETH to pay for the transaction (gas).
A detailed explanation of the full swap and dividend rights certificate issuing procedure, the swap ratio, and an extensive FAQ will follow later this month together with the announcement of the start of the swap.
We are happy to answer any further questions you might have. All your inputs and remarks are welcome. We will reach out with the SMARC token swap details within a few days.
Until then, we wish you and your loved ones to stay in good health and hope that the pandemic will blow over fast.
Richard Ettl and the Smart Containers Team
thank you Marc.
