NEOVACS: Fundraising of 1 MEUR – 03/02/2023 at 6:00 p.m.

Warning :

Néovacs has set up financing in the form of OCEANE-BSA with European High Growth Opportunities Securitization Fund, which, after receiving the shares resulting from the conversion or exercise of these instruments, has not vocation to remain a shareholder of the company.

The shares resulting from the conversion or exercise of the aforementioned securities will generally be sold on the market at very short notice, which may create strong downward pressure on the share price.

Shareholders may suffer a loss of their invested capital due to a significant decrease in the value of the company’s share, as well as high dilution due to the large number of securities issued to the benefit of the company European High Growth Opportunities Securitization Fund.

Investors are advised to be very vigilant before making the decision to invest in the securities of the company admitted to trading which carries out such dilutive financing transactions, particularly when they are carried out successively. The company recalls that this dilutive financing transaction is not the first it has implemented.

Investors are notably invited to take note of the risks relating to these operations, mentioned in the press release below.

Suresnes, March 2, 2023 – 6:00 p.m. CET – Néovacs (Euronext Growth Paris: ALNEV) announces a fundraising of €1 million through the drawdown of 1 tranche of OCEANE-BSA bonds, with a nominal value of €1,000,000, underwritten by European High Growth Opportunities Securitization Fund
[1]
.

50% of the net proceeds from this operation (€960,000) will be used to finance the Kinoïde® research program on allergies

[2]

and, for 50%, to strengthen investment capacities in promising projects, both in the development of drug candidates (BioTech) and medical devices (MedTech). This activity, which has given rise to several equity investments to date (Bio Detection K9, Signia Therapeutics, Netri Medical Devices Venture and more recently Pharnext) will help diversify the risk carried by Neovacs by investing in ambitious but realistic projects.

Operation Features

The drawdown of 1 tranche of OCEANE-BSA announced today gives rise to the issue of 555,555,555 BSA which will be retroceded to Néovacs with a view to their cancellation

[3]

and could give rise to the creation of 1,111,111,111 new shares based on the last listed price. The participation of a shareholder holding 1% of the capital prior to this new drawing would be 0.29%.

The characteristics of the OCEANE-BSAs and the dilutive impact of the transaction are detailed in the press release of September 5, 2021

[4]

. This issue does not give rise to the establishment of a prospectus subject to the approval of the AMF. The role of the initial subscriber is to ensure that the company gradually raises funds. He is not intended to keep the shares and remain a long-term shareholder of the company, but to sell them gradually on the market. The monitoring table of OCEANE-BSAs and outstanding shares is available on the company’s website.

To date, the drawdown of 22 tranches of OCEANE-BSA and 4 tranches of commitment fees has raised €21.1 million, resulting in the creation of 14,858,0393,72 new shares

[5]

, including 2,231,038,580 for contract-related costs, and could still give rise to the creation of 1,111,111,111 new shares based on the last listed price. The participation of a shareholder holding 1% of the capital prior to these drawdowns is now 0.26%.

The public’s attention is drawn to the risk factors relating to the company and its activity, described in the 2021 Annual Financial Report available on the company’s website. The realization of all or part of these risks is likely to have an unfavorable effect on the activity, the financial situation, the results, the development or the prospects of the company. On the date of the last Financial Report, the company carried out a specific review of its liquidity risk and estimated that it would be able to meet its future maturities over the next 12 months thanks in particular to the use of this bond financing line. .

ABOUT NEOVACS

Neovacs is a French biotechnology company, listed on Euronext Growth since 2010, specializing in therapeutic vaccines targeting the treatment of autoimmune diseases. Its innovative technology called Kinoid®, patented until 2038, makes it possible to induce a polyclonal immune response, applicable in several indications. Neovacs has developed IFNα Kinoid for the treatment of lupus in a phase IIb clinical study. The main study has been completed, the full results were presented on the 13

^th

2019 international lupus congress. The Company has also completed promising preclinical work with another therapeutic vaccine, IL-4/IL-13 Kinoid, for the treatment of allergies. The ambition of this “Kinoid® approach” is to enable patients to better tolerate a lifelong treatment which would be more effective, well tolerated and very flexible in its administration.

For more information :

www.neovacs.fr

[1]

There is no capital link or concerted action between HBR Investment Group, Hugo Brugière and European High Growth Opportunities Securitization Fund (or more generally the Alpha Blue Ocean group)

[2]

See press release of December 8, 2020: “PROGRESS IN THE KINOID® RESEARCH PROGRAM ON ALLERGIES”

[3]

As mentioned in the press release of October 29, 2021

[4]

See press release of September 5, 2021: “New financing contract for a maximum nominal amount of €50m over a maximum period of 48 months”

[5]

Including, when necessary, shares issued as compensation due to the level of the stock market price compared to the nominal value of the share.

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