Xilam Animation

Projected Capital Increase With Preferential Subscription Rights

Regulatory News:

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Xilam Animation (Paris:XIL), Academy Award-nominated French animation studio, announces its intention to carry out a capital increase in cash, with preferential subscription rights, in the coming weeks. This projected capital increase is subject to receiving a waiver from the French Financial Markets Authority (“AMF”) from the requirement to file a public offer and it will involve the issuance of new shares representing less than 20% of the company's capital, up to a maximum of 982,299 new shares, for a maximum amount of 6 million euros. Xilam Animation's Board of Directors has sub-delegated to the CEO the power to determine the terms and conditions of this capital increase, pursuant to the fifteenth resolution of Xilam Animation's Ordinary and Extraordinary General Meeting of 23 June 2022.

Pursuant to the provisions of Article 1 paragraph 5 of the Prospectus Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017, this right issue will not result in a Prospectus subject to the approval of the AMF, as the capital increase represents less than 20% of the number of shares of the same class already admitted to trading on the regulated market.

Following the repayment of a €15m EuroPP in July 2023, the Company's debt is currently mainly self-liquidating, and is therefore backed by ongoing production (see Xilam Animation press release dated 26 October 2023). The funds raised through this projected capital increase are intended to enable the Company to optimize its financial structure by rebalancing its balance sheet and improving its debt-to-equity ratio, in a context of increasing debt costs and tighter lending conditions.

For information, Marc du Pontavice, holds directly and through MDP Audiovisuel (421 603 473 RCS Créteil) and Xilam Group (539 985 788 RCS Créteil) (Marc du Pontavice, MDP, Audiovisuel and Xilam Group, together the "Concert"), 1,817,838 shares in Xilam animation, representing 37.01% of the capital, and 3,606,176 voting rights representing 53.58% of the exercisable voting rights and 52.96% of the theoretical voting rights. The members of the Concert will guarantee, pro rata to their respective shareholdings, 75% of the Capital Increase, in the event that other shareholders of Xilam Animation do not participate in whole or in part in this operation.