A convertible bond and potential options for existing shareholders

Crossject announced the principle of granting of free options (“BSA”) to existing shareholders (to compensate for the fact the ones granted in February could not be exercised) as well as the issue of another convertible bond (€2.5m).

The convertible bond (maturity two years after issuance) will not bear interest and Gemme Ventures, the company’s historic shareholder, will contribute €0.8m to the total subscription.

The subscription price will be 92% of nominal value and the conversion price will be the lowest between €3.36 and a weighted average share price less 10% prior to the conversion.

The operation is very similar (albeit smaller) to that announced last February. The group indicates that this new issuance does not suggest that the company’s cash consumption could be higher than initially planned this year, but that it should further support the development of production capacities and commercial negotiations.

Also note that, since no options have been exercised since February, the new total dilution from both convertible bonds (23.68%) is exactly what it would have been if all options granted in February had been converted before June.

In other words, today’s move is meant to substitute for the options that were not converted due to the rather low share price since February and not a way of tapping more money from the market. To that extent, it will not change our numbers much.

No major impact on our numbers. The extra-financing will balance the future dilution of this new issuance.

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