(BFM Bourse) – To secure the funds necessary for its development, the company has set up a multi-pronged plan which includes in particular a capital increase of 8 million euros and carryovers of tax and social security liabilities. Bpifrance will play a leading role in this rescue.
Under financial pressure, METabolic Explorer (Metex) enters into an agreement with its creditors and Bpifrance to try to get its head above water.
The company specializing in industrial fermentation allowing the manufacture of ingredients of natural origin intended for the animal nutrition, cosmetics and biopolymer markets, is facing a negative “scissor effect”. The animal nutrition market is in cyclical decline while the costs of raw materials and energy are rising, degrading the company’s accounts.
This combination of negative factors led its subsidiary Metex NØØVISTAGO not to honor its commitments under a syndicated loan of a total of 100 million euros from which it had already drawn 22 million euros. This led to the payment of this amount already drawn and, as a result, to a cash impasse.
The group’s gross cash was in fact 18.7 million euros at the end of June and Metex clarified that it had continued to deteriorate in the second half.
Bpifrance will ensure the capital increase
Hence the need for the company to obtain new financing which should also enable it to provide the liquidity necessary for its 2023-2024 transformation project.
This financing plan includes several components, including a capital component. Metex thus provides for a capital increase of a maximum amount of 8 million euros by issuing 7.08 million ordinary shares at a price of 1.13 euros per share, i.e. a discount of approximately 29% compared to the Friday’s closing price of 1.60 euro.
SPI, a fund managed by Bpifrance, has undertaken to participate in the amount of all of its subscription rights (DPS) and will also ensure the success of the operation, by also undertaking to subscribe the balance of the amount maximum of the issue that would not be subscribed by other investors. Metex has convened an extraordinary general meeting (AGE) on February 1 to obtain the necessary delegation for this operation.
SPI will also subscribe to simple bonds of Metex repayable in fine for an amount of 12 million euros. Bpifrance also grants two loans for a cumulative amount of 3.5 million euros to the company.
The public bank will also, with the banking partners of Metex NØØVISTAGO, grant a loan guaranteed by the State of 33.9 million euros “as soon as the extension of the system beyond December 31, 2022 is effective”, also indicated Metex.
Deferrals of liabilities
The same banking partners will grant a medium-term loan of approximately 15.5 million euros repayable in sixteen linear quarterly installments after a two-year grace period.
In addition, all the capital amortization deadlines for the capital loans of Metex and Metex NØØVISTAGO which fall from October 6 are postponed by 36 months. With the exception of those of Bpifrance, the interest rates of these loans are increased by 2.1%.
This agreement also provides for the rescheduling, subject to confirmation of certain public creditors, of the tax and social security liabilities of the company and its subsidiaries representing a total amount of around €5.4 million, repayable in March 2023 in the amount of €1. .6 million euros and, for the balance, on a straight-line basis over a period of twelve months from March 2023.
The 22 million euro credit drawn by Metex NØØVISTAGO – which is a revolving credit – will be cleared by the end of December 2023, the group having undertaken to use factoring to replace this credit.
Finally, Metex has indicated that it will have to seek a total of 30 million euros in additional financing by January 1, 2025.
Ebitda loss in 2022 and 2023
This vast financing plan is subject to certain conditions, in particular Bpifrance obtaining a waiver from the Autorité des Marchés Financiers from the obligation to launch a takeover bid (public purchase offer) on the group in the event of where it would exceed 30% of the capital, the approval of the shareholders for this same capital increase, the confirmation of the public creditors of the rescheduling of tax and social liabilities as well as the approval of the agreement by the Commercial Court of Paris.
“At this stage, it is anticipated that the conditions precedent will all be satisfied by the end of February 2023,” Metex said. “In this context, SPI has granted the company a current account advance of 2.5 million euros in order to deal with a cash shortfall. This advance will be reimbursed by compensation on the occasion of the subscription by SPI to the aforementioned simple bonds”, the group also explained.
This agreement should allow the restart of the group’s factory in Amiens, which has been stopped since the beginning of October, the 350 employees being currently on partial unemployment, according to AFP.
On the occasion of this announcement, the group also indicated that it anticipates revenues of around 230 million euros for 2022 and a gross operating loss (Ebitda) of between 20 million and 30 million euros. For 2023, it is currently counting on a turnover of 275 million euros, an EBITDA between -8 million euros and breakeven, and an operating cash outflow (before financing and investments) ranging from 4 million euros to 14 million euros.
By 2025, the company estimates that its turnover should reach approximately 420 million euros, an Ebitda of around 46 million euros and an operating cash flow (before financing and investments) of order of 42 million euros.
On the Paris Stock Exchange, METEX shares fell 13.8% to 1.379 euros, bringing the share price drop to 79.26% since the start of the year.
Julien Marion – ©2022 BFM Bourse
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