Press Release Biocartis Group NV

Agreement regarding recapitalization of operating subsidiaries by secured by secured creditors and wind down of listed holding company

PRESS RELEASE:INSIDE INFORMATION / REGULATED INFORMATION

26 September 2023, 07:00 CEST

AGREEMENT REGARDING RECAPITALIZATION OF OPERATING SUBSIDIARIES BY SECURED CREDITORS AND WIND DOWN OF LISTED HOLDING COMPANY

• The Company’s Secured Creditors (being its First Lien Creditors and Bondholders, as defined below) will take ownership of the Biocartis operating subsidiaries through enforcement and inject EUR 40 million of new equity capital to fund the business to EBITDA break-even by the end of 2024
• Under the ownership of the Secured Creditors, the business will have a right-sized balance sheet with EUR 132 million of deleveraging from today
• Transaction should be completed by end of 2023 and is not expected to impact Biocartis's customers, suppliers, partners or employees
• Shareholders of Biocartis Group NV will receive no distribution from the security enforcement and are expected to receive nothing at the time of its wind down
• Unsecured 4.00% convertible bonds due 2027 will be written down to zero pursuant to their terms as part of the enforcement
  
  

Mechelen, Belgium, 26 September 2023 – Biocartis Group NV (the “Company” or “Biocartis”), an innovative molecular diagnostics company (Euronext Brussels: BCART), announces it has been informed of an agreement by its Secured Creditors on a recapitalization of its operating subsidiaries and comprehensive balance sheet restructuring transaction (the “Transaction”) that will materially de-lever the operating business by reducing its debt burden by EUR 132 million and recapitalizing it with EUR 40 million of new equity capital under the ownership of the Secured Creditors. This new capital is expected to fund the business through EBITDA break-even by the end of 2024 and ensure business continuity of the operating Biocartis companies, safeguard the interests of customers, suppliers, partners, and employees of Biocartis, and support execution of the growth strategy towards profitability. As a result of the Transaction, there will be a change in ownership through enforcement of security by the Secured Creditors of substantially all of the assets of Biocartis to New Biocartis (as defined below); customers, suppliers, partners, and employees are not expected to see any impact as a result of this ownership change.