BOOSTHEAT: VALIDATION OF THE SAFEGUARD PLAN DURING THE HEARING AT THE COMMERCIAL COURT – EXIT OF THE SAFEGUARD PROCEDURE – 05/23/2023 at 6:00 p.m.

Vénissieux, May 23, 2023

BOOSTHEAT (FR0011814938 / ALBOO), a French industrial player in energy efficiency, announces that it has presented today before the Commercial Court of Lyon its draft safeguard plan, as part of its collective proceedings opened since October 4 2022. During this hearing, BOOSTHEAT presented its new strategic orientation and the financing of its turnaround project, a healthy balance sheet thanks to the success of the actions carried out on its debt reduction and recalled the solid support of its reference shareholder HBR Investment Group. On the strength of this demonstration, the Lyon Commercial Court approved the draft safeguard plan “on the bench”, on the favorable opinion of all the bodies involved (commissioner judge, judicial administrator, judicial representative and public prosecutor). This very favorable decision puts an end to BOOSTHEAT’s safeguard procedure and definitively validates the takeover offer by HBR Investment Group as well as all the actions carried out for several months, in particular on the operational and financial restructuring of the company.

Hugo Brugière, CEO of BOOSTHEAT, declares

: “

We are very pleased with the outcome of this hearing and the validation of BOOSTHEAT’s draft safeguard plan, which testifies to the solidity of this turnaround project and puts an end to the Company’s safeguard procedure. We succeeded in convincing all the procedural bodies of the relevance of this ambitious plan built on BOOSTHEAT’s technological and human fundamentals, a largely sound financial situation and significant support from HBR Investment Group.

I would like to warmly thank Madam Commissioner Judge, for her attentiveness and the quality of our discussions, as well as our lawyer, Maître Dimitri Sonier, our judicial administrator, Maître Gaël Couturier, and our judicial representative, Maître Caroline Lepretre, for their support throughout. throughout this process and in particular within the framework of this hearing of great importance for the company.

We can now fully concentrate on turning around BOOSTHEAT. With an extraordinary breakthrough technology and a team of experts fully mobilized in action, I am convinced that BOOSTHEAT has all the assets to carry out its new strategic orientation. HBR Investment Group will continue to support the teams towards this success. »

I A REPOSITIONED, REORGANIZED AND ONCE AGAIN ATTRACTIVE COMPANY

During this hearing, BOOSTHEAT presented in detail its operational turnaround strategy around its

new design office organization centered on its two activities
[1]

: “thermal compression solutions” based on the company’s know-how and its 7 families of patents and “BS3” around its energy performance management software.

The Company recalled the recent move of its teams (12 employees largely from the former team and 13 service providers) to premises better sized to its new size and the operational start-up of its new test laboratory

[2]

.

On this occasion, BOOSTHEAT also recalled having received strong marks of interest for thermal compression technology from strategic partners (associative, industrial and laboratory), in North America (CTGN Canada and North American Gas Heat Pump Collaborative) and in France (Sapaic, CETIAT, GTI Energy)

[3]

.

I SUPPORTED BY ITS REFERENCE SHAREHOLDER AND ITS BOARD OF DIRECTORS IN THE EXECUTION OF ITS ROADMAP

During this hearing, BOOSTHEAT recalled the

strong involvement of its shareholder HBR Investment Group in the success of the Company’s turnaround project

, in particular through its financial support to release liabilities. To date, the support of HBR Investment Group represents an investment of €1.3 million in the context of the takeover of BOOSTHEAT and the execution of its backup plan project, whether through the contribution in current account in accordance with the authorization received from the supervising judge

[4]

or through debt buyback operations (bonds, banking, subsidies and leasing).

BOOSTHEAT also recalled the support of its Board of Directors

in the execution of its strategic roadmap, which notably includes 3 historical directors of BOOSTHEAT who have chosen to continue their mandate to support BOOSTHEAT in the success of its new strategy.

I A HEALTHY FINANCIAL FRAMEWORK AND A FUNDED TURNOVER PLAN

Finally, BOOSTHEAT recalled the major work carried out on the financial restructuring of the Company

with its creditors. The operations to buy back bond, bank and grant receivables by HBR Investment Group and the direct payments made by the latter (PGE in particular) enabled BOOSTHEAT to reduce its debt massively for a total of €18.4 million. HBR Investment Group has become the sole bondholder and main creditor of BOOSTHEAT and has undertaken not to request the reimbursement in cash of its debts which may be converted into capital over time.

[5]

.

In total, out of a declared liability of around €29 million at the start of the procedure, BOOSTHEAT now has a liability to be cleared over the duration of the plan of €1.3 million, for available cash of 1.1 €m as of April 30, 2023.

A debt settlement plan was drawn up and presented during this hearing concerning the residual receivables. The proceeds from the sale of equipment that has become non-strategic as part of the new business plan will be allocated to the reimbursement and compensation of creditors in accordance with the authorizations of the judge-commissioner

[6]

.

Finally, BOOSTHEAT specified the resources needed to implement the planned turnaround, i.e. to date approximately €6.6 million for the 2023 financial year (including €5.9 million in operating costs, and €0.7 million € of BOOSTHEAT’s debt restructuring costs excluding debt buybacks financed directly by HBR).

BOOSTHEAT recalled that the turnaround project is mainly financed by recourse to the existing equity financing line by issuing warrants redeemable in shares (ORA) (of which €2.5 million were called between 1

^er

January 2023 and April 30, 2023), by a contribution in the current account of a partner by HBR Investment Group and by possible signatures of industrial and research partnerships. BOOSTHEAT recalled that it benefits from the guarantee of HBR Investment Group within the limit of €10 million.

At the end of this hearing, the Commercial Court of Lyon decided “on the seat” of BOOSTHEAT’s draft safeguard plan, thus allowing the final exit from the safeguard procedure. This decision validates the final adoption of the Offer, allowing the Company to initiate its turnaround plan. The final judgment of the Commercial Court of Lyon relating to the decree of the safeguard plan should be available in the coming days. BOOSTHEAT will communicate again on this occasion, in particular to provide more details on this plan.

* * *

Find all BOOSTHEAT information on

https://www.boostheat-group.com/en/

ABOUT BOOSTHEAT

Founded in 2011, BOOSTHEAT is a player in the energy efficiency sector. The Company’s mission is to accelerate the ecological transition through the integration of its technology in highly energy-consuming applications. BOOSTHEAT has designed and developed a thermal compressor protected by 7 families of patents allowing significant optimization of energy consumption to tend towards a reasonable and relevant use of resources.

The Company is listed on Euronext Growth in Paris, (ISIN: FR0011814938).

I CONTACTS

NEWS finance & communication – Anne-Pauline PETUREAUX

Investor Relations

Such. : 01 53 67 36 72 / [email protected]

NEWS finance & communication – Serena BONI

Press relations

Such. : 04 72 18 04 92 / [email protected]

[1]

See press release of January 4, 2023

[2]

See press release of February 13, 2023 and press release of May 22, 2023

^[3]

See press releases of February 16, 2023 and May 2, 2023

[4]

See press release of February 13, 2023

[5]

See press release of May 17, 2023

[6]

See press release of February 13, 2023 and May 17, 2023

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