Leclanché carries out important communication on its activities

Ad hoc announcement according to Art. 53LR

Leclanch makes important communication about its activities

– The Company confirms that it has obtained a bridge loan of CHF 20.4 million from SEFAM^[1] in order to finance its activities until the planned merger of Leclanch E-Mobility SA with a specific purpose acquisition company (SPAC) listed in the United States, as announced on December 23, 2021.

– SEFAM has also agreed to postpone CHF 40 million of its Leclanch loans to remedy the Company’s negative equity position at the end of 2021 and until May/June 2022, when the merger of Leclanch E-Mobility SA with SPAC should be finalized.

– Lack of cash and global supply chain disruptions continue to impact cell and system production, significantly reducing customer deliveries.

– In view of the merger of Leclanch E-Mobility SA with SPAC, the Company is restructuring its operational model. On the other hand, the current CFO has chosen to leave the Company in the coming months.

– SEFAM has committed to invest up to USD 50 million in the PIPE^[2] to support the merger with SPAC.

– Commercial developments are continuing favorably with the acquisition of new customers throughout the world. Compared to the announcement made in June 2021, contract revenue^[3] of the eTransport activity (now Leclanch E-Mobility) increased by 38% to reach USD 477 million.

YVERDON-LES-BAINS, Switzerland, February 24, 2022 -Leclanch HER one of the world leaders in energy storage solutions, today carries out an important communication on its activities.

Obtain strong and continuous support from its main shareholder, SEFAM

The Company is grateful to SEFAM for its continued support and investment during this phase of Leclanch’s transformation.

– SEFAM granted a bridge loan of CHF 20.4 million to the Company allowing it to continue its activities until the merger of Leclanch E-Mobility SA with SPAC, as announced on December 23, 2021.

– Despite this bridging loan, the Company’s cash position remains tight, which leads to late payments to certain suppliers. The Company is redoubling its efforts to raise additional funds to remedy this situation as soon as possible.

– The debt postposition agreement of CHF 40 million of the loans granted by SEFAM Leclanch to remedy the Company’s negative equity position should make it possible to complete the audit of the 2021 accounts and facilitate the merger process with SPAC.

Anil Srivastava, managing director of Leclanch, said : We are grateful to SEFAM for granting us this bridging loan. The Company is in discussions with other investors/lenders to increase its working capital. In the meantime, I would like to express my sincere thanks to all our key suppliers for their understanding when, unfortunately, certain payments are sometimes made after the due date of their invoices. Thanks to the bridging loan and ongoing fundraising, the Company is certain to be able to pay all its past due invoices in the coming months. We look forward to further strengthening our business relationships with our suppliers as the merger with SPAC progresses..

Implementation of the new operational model

Following the announcement made on December 23, 2021 regarding the spin-off of the eTransport business into a new Swiss legal entity, Leclanch E-Mobility SA, and its planned merger with a US-listed Special Purpose Acquisition Company (SPAC) , the Board of Directors of the Company has approved a new operational model in order to ensure a smooth transition at the time of the merger and to allow the implementation of a targeted growth plan for all the activities of Groupe Leclanch SA . The two independent operational units are:

1. Leclanch SA focused on stationary energy storage solutions and specialty battery systems;

2. Leclanch E-Mobility SA focuses on the eTransport business.

Irrespective of the aforementioned restructuring, Hubert Angleys, the CFO, has decided to leave the company and pursue other opportunities. He will remain in post for some time in order to finalize the work of auditing the 2021 accounts and the implementation of the new organization. The Company has appointed Fabrizio Pauletti as interim financial director until the merger with SPAC. He will work closely with Hubert Angleys during this transition period.

Fabrizio Pauletti obtained his diploma and doctorate in economics from the University of Basel and is a certified financial analyst and portfolio manager (CIIA). He has been a member of the board of directors of various companies in the financial and industrial sectors. He teaches courses in corporate finance at the Controller Academy in Basel and Zurich.

Dr. Llus M. FargasChairman of the Audit and Risk Management Committee, will assist and guide the interim CFO during the merger process.

Stefan Mller, Chairman of the Board of Leclanch, said: I would like to thank Hubert Angleys for all he has brought to Leclanch and for his hard work in helping the Company grow over the past six years. His dedication and professionalism have been a great asset to the Company, and I sincerely wish him success in his new professional adventure. I would also like to thank him warmly for the minutes of all board meetings and calls that he patiently took care of as secretary of the board.

Anil Srivastava, Managing Director of Leclanch, said: Hubert Angleys has played an invaluable role in developing the business of the new Leclanch. He has truly been a great business partner and colleague. I had the pleasure of working with him and was able to really appreciate his integrity and his multitasking abilities. We wish him the best for his future projects.

Although delayed by a few weeks, the SPAC process is progressing satisfactorily

In our December 23, 2021 announcement, we mentioned that we hoped to announce the final merger with SPAC in mid-February 2022. SPAC’s audit work on Leclanch is still ongoing. We expect this process to be completed within six to eight weeks. Thus, we expect to be able to announce the final merger with SPAC by the end of April 2022. We would like to reaffirm that the SPAC process, although delayed, is going well.

The continued support of our major shareholder, who is committed to investing up to USD 50 million in the PIPE, will significantly complement the size of the SPAC trust and ensure the highest possible cash injection into the merged company.

Continued winning of new customers and strong growth momentum

Despite persistent supply chain issues, the Company continues to win new customers around the world. The Enterprise is pleased to announce that it has renewed its contract with a major train and locomotive operator in North America. This once again confirms the competitive value of Leclanch products and solutions, and above all the trust of its customers.

The Leclanch Group’s cumulative order book since the beginning of the year (backlog) exceeds USD 51 million, including USD 33 million or 62% of the total for Leclanch E-Mobility.

For more information, email [email protected] or visit www.leclanche.com.

About Leclanch

Leclanch SA, headquartered in Switzerland, is a leading global provider of high-quality energy storage solutions designed to accelerate our progress towards a clean energy future. Leclanch’s history and heritage is rooted in over 100 years of innovation and the company is a trusted provider of energy storage solutions worldwide. This, combined with the Company’s culture of German engineering, precision and Swiss quality, makes Leclanch the partner of choice for disruptors, established companies and governments who are at the forefront of positive change in how energy is produced, distributed and consumed around the world. The energy transition is mainly driven by changes in the management of our electricity networks and the electrification of transport, and these two end markets form the backbone of our strategy and our economic model. Leclanch is at the heart of the convergence of transport electrification and the evolution of the distribution network. Leclanch is organized into three business units: energy storage solutions, e-mobility solutions and specialist battery systems. Leclanch is listed on the Swiss Stock Exchange (SIX: LECN).

SIX Swiss Exchange: ticker symbol LECN | ISIN CH 011 030 311 9

Disclaimer

This press release contains certain forward-looking statements relating to the business of Leclanch, which may be identified by terms such as strategic, proposed, introduce, will, planned, expected, expected, committed, expects, plans, established, prepared, plans, estimates, goals, would, potential, expectation, estimate, proposal, or similar expressions, or by express or implied discussions regarding the ramp-up of Leclanch’s production capacity, potential applications for existing products, or potential future revenues of such products, or the potential future sales or profits of Leclanch or any of its business units. You should not place undue reliance on these statements. These forward-looking statements reflect Leclanch’s current views with respect to future events and involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from any future results, performance or achievements expressed. or implied in these statements. There is no guarantee that Leclanch’s products will achieve any particular revenue levels. There is also no assurance that Leclanch, or any of its business units, will achieve any particular financial results.

Leclanch Contacts

^[1] SEFAM stands for: AM INVESTMENT SCA, SICAV-SIF – Illiquid Assets Sub-Fund and AM INVESTMENT SCA, SICAV-SIF – R&D Sub-Fund, as well as STRATEGIC EQUITY FUND – Renewable Energy Sub-Fund, STRATEGIC EQUITY FUND – Multi Asset Strategy Sub -Fund, STRATEGIC EQUITY FUND – E Money Strategies Sub-Fund (also called Energy Storage Invest) and, all these funds being globally the main shareholder of Leclanch, hereinafter referred to as SEFAM.

^[2] Private investment in public shares – it supplements the capital held in the trust account of the SPAC.

^[3] Contractual revenue: unweighted backlog and master supply agreements, including: backlog; committed opportunities, including planned calls under supply agreements (long term supply agreement – LTSA, MOU, LOI, general T&C); and one-off projects undertaken with any client with or without a framework agreement.