Unaudited interim financial statements for Q3, 2020

In the first three quarters of 2020 Capitalia reported turnover of EUR 763 thousand and profit of EUR 80 thousand. The drop of turnover (decrease of 25% compared to the corresponding period last year) reflects the smaller volume of deals that we have financed and hence lower commission income. Our liquidity and balance sheet position has remained strong with significant available cash reserve.

In the second quarter of the year Capitalia issued new financing in the amount of EUR 4.53 million (EUR 2.99 million in the previous quarter). Among the financed businesses during this period where, for example, such companies as Pure Chocolate (production of chocolate products), Agrocredit Latvia (financing of agricultural companies) and Eskaro (production of paints and tarnishes). Almost all of the deals we are now financing through our co-financing platform minimizing the dependence of capital flow from Mintos platform. With increasing cautiousness in attraction of new debt financing from businesses as they await how the impact of the pandemic will weight on the regional economy, we are increasingly focusing on development of other services. Among such are advisory on equity finance raising, business sale and business acquisition. Also, we are working on development of new investment instruments for our pool of investors. We plan to offer bond placements (including secondary market transactions) as well as real estate deals. These activities are done in parallel to application for the brokerage license for which a daughter company of Capitalia – SIA Capitalia Investment Services – has applied. The daughter company has paid-up capital of EUR 100,000. 

We believe that over the last quarter of the year the financing activity will be relatively low. With that in mind we will continue to focus on developing alternative review channels, mainly consulting on corporate finance transactions. 
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