Eevia Health Faces Ongoing Liquidity Challenges

Eevia Health, a company known for its sustainable bioactive extracts, is experiencing significant liquidity challenges. Despite efforts to reduce operating costs over the past six quarters and a partial recovery in revenue following the loss of a major customer in July 2023, the company continues to operate with a negative EBITDA.

In an attempt to stabilize its financial position, Eevia completed two rights issues in 2024 and 2025, raising nearly MEUR 2 in new equity. However, the company has struggled to secure non-dilutive financing from Finnish funding institutions, with applications for EU-backed loans and grants repeatedly rejected. This lack of public financial support has hindered Eevia's turnaround plan, which relied on matching funding to support new sales contracts and cost optimization initiatives.

Facing a funding gap, Eevia plans to shift its R&D and production activities to regions more supportive of nutrition and health innovation. Immediate actions include prioritizing inventory sales to generate cash, significant cost reductions, and seeking a bridge loan followed by a private equity placement. The company also plans debt-to-equity swaps with approximately 35% of unsecured creditors.

Despite these challenges, Eevia sees major commercial opportunities with recent significant sales contracts. The Board and Management are committed to protecting shareholders and creditors, opting for private restructuring over public measures. However, the uncertainty around Eevia's financial position has delayed the audit process and impacted asset valuations.

For investors, the current situation suggests caution. The company's financial instability and reliance on uncertain funding sources make it a high-risk investment. Therefore, it may be prudent to hold onto current investments until more clarity emerges regarding Eevia's financial restructuring and future prospects.