Bonds of rental scooters company Tuul have shed half their nominal value

On the Nasdaq Tallinn exchange, Tuul Mobility bonds are trading at approximately half of their nominal value. The company's CEO, Tauri Kärson, attributed this to the low volume of transactions and reassured investors that there is no cause for concern.
Tuul Mobility's 10-percent bonds were listed on the First North alternative market of the Tallinn exchange in March 2022. Currently, they are trading at approximately half of their nominal value.
Tuul Mobility CEO Tauri Kärson does not view the decline as alarming. Speaking to ERR, Kärson explained that the Baltic stock market is relatively small, meaning that even the sale of one or two bonds or shares can significantly influence market movements.
"However, to draw any fundamental conclusions, it's always prudent to look at transaction volumes, meaning how many bonds or shares have changed ownership. The majority of Tuul bondholders have remained the same since April 4, 2022, when the bond became publicly traded," Kärson added.
He pointed out that this year, only four bonds have changed hands, a volume that reflects the specific preferences or needs of individual investors.
"This is common in the market," Kärson said. "If someone needs to exit their position quickly, the price of a bond or share may drop. Conversely, if an investor has time to sell, the price may rise. In 2025, transactions involving Tuul bonds have occurred in both directions."
Kärson assured investors that they need not worry about the company's future. He highlighted a recent end-of-season user survey conducted by Tuul, with responses from 3,000 participants. According to the survey, 49 percent of users are increasingly replacing car trips with scooter rides.
"Tuul will be back on the streets in spring, offering a strong alternative to car travel in the new season," the CEO confirmed.
In the first half of last year, Tuul reported unaudited revenue of €1.2 million, with losses exceeding €538,000.
The company's interim report also revealed that its net assets did not meet the requirements of the Commercial Code. Specifically, Tuul Mobility's equity was in deficit by nearly €602,000, which the company attributed to slowed sales growth due to rising consumer uncertainty. As a result, Nasdaq Tallinn added a warning label to Tuul bonds on October 1, 2022.
"Tuul plans to achieve positive equity through cost reductions and process optimization to make the company profitable. Additionally, we are considering strategic alternatives, including raising additional investments and/or a full or partial sale of the company," Tuul stated at the time.
The company aims to restore positive equity by the first half of 2025.
In 2023, Tuul Mobility's consolidated revenue grew by 37 percent to €2.896 million, but the company still reported a loss of nearly €554,000. In comparison, revenue in 2022 was €2.1 million, with losses exceeding €787,000.
The maturity date for Tuul bonds is March 2027.
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Editor: Karin Koppel, Marcus Turovski