Adocia Was Granted a State-guaranteed Loan (PGE) for Eur 7 Million Associated With a Rescheduling of Loan Terms Contracted In 2019

Regulatory News:

Adocia (Euronext Paris: FR0011184241 – ADOC- the “Company”) (Paris:ADOC), a clinical stage biopharmaceutical company focused on the treatment of diabetes and other metabolic disease with innovative formulations of approved proteins, announced today that a EUR 7 million non-dilutive financing was approved by BNP, HSBC, LCL and Bpifrance in the form of a state-guaranteed bank loan (PGE).

“We would like to thank Bpifrance and our bank partners, BNP, HSBC and LCL for their support and the grant of a State-guaranteed bank loan (PGE). In this context, we are grateful that our partner, IPF Partners, also contributes to support our company by rescheduling bank loan payments for an amount of EUR 2 million,” commented Valérie Danaguezian, CFO of Adocia. “These two operations strengthen our cash position by EUR 9 million, which enables us to accelerate the clinical program planned in our operation plan.”

These bank loans are guaranteed by the French government up to 90% of the due amounts and are subject to payment following the first year. By the end of the first year, the reimbursement of the loans could be differed again and amortized over a maximum period of 5 years, at the Company’s option. These bank loans will have fixed interest rates ranging from 0.25% to 1.75% for the first year¹.

The Company was also granted, by its partner IPF Partners, a rescheduling of the loan payment contracted in 2019 for a total amount of EUR 15 million². The Company benefits from the postponement of its payment deadlines of the capital until December 2021, which represents a cash outflow postponement of 12 months up to EUR 2 million. The maturity dates of the two tranches do not change.

In consideration of this postponement, the board of July 20, 2020³ decided to grant IPF Fund II SCA SICAV FIAR a total number of 35,005 free warrants (BSA), under terms and conditions similar to those granted to IPF Fund II SCA SICAV FIAR under the main contract⁴, with the exercise price on the warrants amounting to EUR 7.70⁵. The number of warrants corresponds to 15% of the differed amount of the capital, i.e. EUR 300,000. At the date of this current press release, excluding any adjustment to the exercise price of the warrants, the number of shares that could be issued would be 38,961, or approximatively 0.5% of the Company’s capital.