DEINOVE has set up with KEPLER CHEUVREUX a guaranteed equity line funding in four tranches over three years, with a maximum amount of € 15 m.
DEINOVE issues today the 1st tranche amounting to € 3.5 m.
DEINOVE significantly strengthens its cash perspective while maintaining the right not to issue all tranches and / or implement other financing transactions.
DEINOVE (Alternext Paris: ALDEI), a cleantech company that designs and develops new industrial production standards based on the exploitation of Deinococcus bacteria, announces the establishment of medium-term equity line funding with the company KEPLER CHEUVREUX. This financing solution brings DEINOVE the guarantee of raising up to € 15 million over a flexible duration of 3 years maximum.
"In the current market conditions, we felt that the solution proposed by Kepler Cheuvreux brought us both security and flexibility to finance our operations", said Emmanuel Petiot, CEO of Deinove. "With the amount of up to € 15 million, regardless of short-term market fluctuations, we have the necessary leeway to continue the development of our various ambitious projects in the field of plant chemistry."
The financing is structured in four tranches. Each tranche guarantees DEINOVE a predefined amount within a pre-set period of time.
The issuance of the first tranche took place simultaneously with the signing of the contract between DEINOVE and KEPLER CHEUVREUX, who agreed to subscribe to an amount equal to € 3.5 million over the next seven months - an indicative total of DEINOVE shares equal to approximately 500,000 representing 9,3% of the current capital of the Company - subject to compliance with the conditions defined by the contracting parties.
The issue price of the shares will be based on the current DEINOVE stock price with a maximum 7.5% discount. This discount allows KEPLER CHEUVREUX to act as a financial intermediary and a guarantor within their underwriting commitment.
For reference, should the proceeds of this facility actually amount to €3.5 million, based on a share price of €7 (after discount applied) , a shareholder currently holding 1.0% of the Company’s share capital would see his/her ownership reduced to 0.91% .
The other three tranches will be issued at the discretion of DEINOVE, who can renounce by proceeding to the early termination or suspension of the contract with KEPLER CHEUVREUX. DEINOVE has no obligation to use the remaining three tranches and it will use this financial instrument only when necessary and in the best interests of the Company and its shareholders.
This funding line terminates the Paceo® implemented on October 30, 2013.
Complementing its existing cash resources and the other sources of financing to which DEINOVE has access, this instrument allows the company to significantly strengthen its cash perspective and provides the company with an improved visibility on its financing plan.