A strategic plan has been developed and is set to be implemented this year, aimed at paying off debt and optimizing the business. Strax intends to concentrate on four core brands and is considering selling a majority stake in its stable and profitable distribution business to generate funds. We anticipate that Strax has the potential to be a compelling turnaround story, with a highly skilled management team that we believe can successfully execute this plan.

Given its robust market presence in North America, Strax intends to continue its marketing and sales efforts in the US and Canada. The company will place a premium on promoting its own brands, specifically Urbanista, Clckr, Planet Buddies, and Richmond&Finch. Among these brands, Clckr, which has already established itself in over 10,000 stores, provides an exceptional foundation for reaching a wide-ranging customer base and supporting further growth.

The estimates provided by Redeye do not warrant any significant adjustments to our fair value range. Our base case value stands at SEK 2.8 (2.9), with a bear case of SEK 0.6 (0.9) and a more optimistic bull case of SEK 6. (6.1). Our SOTP valuation of SEK 4.90 falls within this valuation range.