par Affluent Medical (isin : FR0013333077)
Affluent Medical closes €3.5 million bridge via capital increase from key shareholders.
Affluent Medical PRESS RELEASE
Affluent Medical closes €3.5 million bridge via capital increase from key shareholders
Aix-en-Provence, 29 January 2024 - 5:45 pm - Affluent Medical (ISIN: FR0013333077 – Ticker: AFME), a French clinical-phase MedTech company specialising in the international development and industrialisation of innovative medical prostheses, today announced the closing of a €3.5 million bridge financing with its key existing shareholders. This has been completed in the format of a capital increase with cancellation of shareholders’ preferential subscription rights through an offer reserved for a category of beneficiaries. Participating shareholders are the followings: Truffle Capital, LCEA, Ginko Invest, Denos and Hayk Holding. Sébastien Ladet, Chief Executive Officer stated: “As Affluent Medical advances its three clinical programs, each with significant milestones anticipated in 2024, this bridge financing allows us to continue to explore options for securing long term financing for our company and provide us with the flexibility to execute our roadmap. It reflects the confidence from our key shareholders in the strategy and the management of the Company.” Allocation of funds The transaction will enable the Company to finance its operational requirements, specifically covering costs associated with regulatory support for interactions with the FDA concerning Kalios, initiating the pilot study in men for Artus and continuing the pilot study for Epygon. With the closing of the bridge, the financial runway is extended until May 2024 without impacting operational activities. Main terms and conditions of the transaction This capital increase was implemented with the decision of the Board of Directors on January 26, 2024, in accordance with the delegation granted by the 6th resolution of the Extraordinary General Meeting of Shareholders of November 10, 2023. The transaction resulted in the issuance of 2,243,588 new ordinary shares, constituting 7.26 % of the Company's current share capital, without preferential subscription right for the benefit of a category of beneficiaries, at a per-share price of €1.56 (including issue premium). This represents about a 10% discount to the volume-weighted average price of Affluent Medical shares on the Euronext Paris regulated market during the twenty trading days preceding the pricing of the offer, in compliance with the sixth resolution of the Extraordinary Shareholders' Meeting held on November 10, 2023. Following this transaction, Affluent Medical share capital now consists of 33.145.236 shares, each with a nominal value of €0.10. For reference, a shareholder who held 1% of the company's share capital before the capital increase will see their interest reduced to 0.93% after the transaction. The settlement-delivery of the new ordinary shares issued in connection with this transaction, along with their admission to trading on the Euronext Paris regulated market under ISIN code FR0013333077, Ticker: AFME is scheduled for January 31, 2024.
Company’s funding strategy beyond May 2024 With a view to the period after May 2024, the Company is proactively addressing the ongoing need for financing with active exploration of various options to secure additional funding in terms of equity, strategic partnership, and non-dilutive financing. This approach reflects the Company's commitment to ensuring the necessary resources for its future developments and sustaining its growth trajectory.
Michel Therin, Chairman of the Board comments: “Affluent Medical is developing the next generation of medical devices designed to change the approaches towards repairing or replacing the mitral valve, and to cure urinary incontinence. As we move forward to the next step of the clinical program, we are more and more convinced of the value proposal of Kalios, the most advanced product that is the first mitral annuloplasty device that can be percutaneously adjusted for a beating heart, thereby avoiding repeat open-heart surgeries for patients. With the support of numerous renowned surgeons and considering the performance of the device compared to the existing therapeutic options, the board truly think we can bring a medical device to patients and the medical community in the short-term that is able to change and improve the lives of millions of patients.”
Impact on the distribution of share capital and voting rights
Distribution of share capital and voting rights pre-transaction
Prior to the capital increase and on the basis of information available to Affluent Medical, Affluent Medical's share capital was distributed as follows:
(1) The funds and companies managed by Truffle Capital are : FCPI Fortune III, FCPI Truffle Fortune 4, FCPI Truffle Fortune 5, FCPI Truffle Fortune 6, FCPI UFF Innovation n°12, FCPI UFF Innovation n°14, FCPI UFF Innovation n°15, FCPI UFF Innovation n°16, FCPI UFF Innovation n°17, FCPI Innocroissance 2015, FCPI Innocroissance 2016, FCPI Innocroissance 2018, FCPI Innocroissance 2019, FCPI Truffle Biomedtech Crossover Fund, FCPI Truffle Innov FRR France, Truffle ISF PME 2017, Meningose, Corazan and Truffle Medeor. (2) The other financial investors are: Holding Incubatrice Serie I, Holding Incubatrice Serie II, MyoPowers Medical Technologies SA, MitralFlex, Saint Joseph hospital Foundation, Simone Merkle, Kam, Zhu. Holding Incubatrice Serie I holds 1,774,104 shares representing 5.74% of the share capital and 7.57% of the voting rights on a non-diluted basis. Holding Incubatrice Serie II holds 741,922 shares representing 2.40% of share capital and 3.17% of voting rights on a non-diluted basis.
Distribution of share capital and voting rights post-transaction
Affluent Medical's share capital will consist of 33,145,236 shares following settlement-delivery. Following this capital increase, to which:
and on the basis of information available to Affluent Medical, the distribution of Affluent Medical's share capital is as follows:
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