Original-Research: Coreo AG - von GBC AG

Einstufung von GBC AG zu Coreo AG

Unternehmen: Coreo AG

Anlass der Studie: Research Note
Empfehlung: BUY
Kursziel: 2.60 EUR
Kursziel auf Sicht von: 31.12.2021
Letzte Ratingänderung:
Analyst: Cosmin Filker; Marcel Goldmann

Instead of the public bond issue, Coreo AG will conduct a private
placement, planned issue volume of EUR 30 million, forecasts and rating

On September 14, 2020, Coreo AG cancelled the bond issue which had been
running since August 24, 2020. Of the planned issue volume of EUR 30
million, approximately EUR 10 million were placed by the end of the
extended subscription period (14.09.2020). This would not allow the
original investment plan to be implemented. In accordance with the use of
funds, Coreo AG had planned on the one hand to repay the warrant bond with
an outstanding volume of EUR 15 million, which runs until 2022, and on the
other hand to finance new investments in residential and commercial real

As a replacement for the now cancelled public offering, the company
nevertheless plans to carry out a private placement in the amount of the
original bond volume of EUR 30 million to a well-known investor and the two
anchor shareholders. According to the company, the relevant discussions are
at an advanced stage. Following the adjustment of the bond conditions, the
private placement should be finalized in the coming weeks.

Compared to the previous bond issue, there will be no significant changes
for Coreo AG shareholders, apart from the adjustment of the terms and
conditions, which we believe should be minor. The full placement of the
originally planned volume of EUR 30 million would be ensured, which means
that the original investment plan could be implemented. The repayment of
the option bond with an outstanding volume of around EUR 15 million, which
runs until 2022, would then still be possible. The coupon of the warrant
bond in the amount of 10% should be significantly higher than the interest
rate in the private placement, which should result in considerable interest

In addition, the company plans to acquire properties worth more than EUR 40
million in the near future, for which exclusivity agreements have already
been concluded. The approximately EUR15 million still available after the
redemption of the warrant bond would be sufficient to implement the
specifically planned real estate acquisitions. With an assumed LTV (loan-
to-value) of approximately 66%, the Company could acquire new properties
with a volume of up to EUR 50 million.

Despite the cancellation of the bond issue, the fact that the Company is
expected to receive the originally targeted volume of EUR 30 million is to
be seen as positive overall. Especially since Coreo AG will be able to
carry out another bond issue at a later date on the basis of the
preparatory work carried out. In order to realize the portfolio growth of
EUR 40 million in 2020 and 2021 that we have forecast so far, the company
will require additional funds.

Our previous forecasts remain valid. Within the scope of the Anno Study
published on June 17, 2020, we assumed a significant expansion of the key
earnings and profit figures on the basis of the existing portfolio and
including planned new investments of EUR 40 million. We confirm the target
price of EUR 2.60 determined in the Anno study and thus continue to assign
the BUY rating.

Die vollständige Analyse können Sie hier downloaden:

Kontakt für Rückfragen
Jörg Grunwald
Halderstraße 27
86150 Augsburg
0821 / 241133 0
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (4,5a,6a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
Date (time) completion: 17.09.20 (3:05 pm)
Date (time) first distribution: 18.09.20 (9:30 am)

-------------------übermittelt durch die EQS Group AG.-------------------

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