Mauna Kea Technologies Executes Agreement to Restructure its Existing Loan Agreement with the European Investment Bank
April 24 2024 - 11:45AM
Business Wire
Renewed EIB confidence in Mauna Kea
extending support until 2029
Final maturities deferred 4 years to 2028
and 2029
Alignment of debt maturities with the
Group’s trajectory of profitability and cash flow
generation
Cash runway until Q1 2025
Regulatory News:
Mauna Kea Technologies (Euronext Growth: ALMKT)
(Paris:ALMKT), inventor of Cellvizio®, the multidisciplinary probe
and needle-based confocal laser endomicroscopy (p/nCLE) platform,
today announced the execution of an agreement to restructure €21.3
million in outstanding debt obligations related to the Company’s
finance contract with the European Investment Bank (EIB).
Initially signed in June 2019, the finance contract enabled
Mauna Kea to access two loan tranches of €11.5 million and €6
million, respectively set to mature in a single installment in July
2024 and July 2025. The terms included a capitalized interest rate
of 5% for the first tranche, and an annual interest rate of 3% and
capitalized interest rate of 4% for the second tranche.
Additionally, the agreement involved issuing share warrants to the
EIB: 1,450,000 warrants at an exercise price of €1.88 for the first
tranche and 500,000 warrants at an exercise price of €1.24 for the
second tranche.
Under the newly agreed restructuring agreement, the EIB has
consented to defer the final principal and interests for both
tranches to July 2028 and July 2029 respectively. The revised
schedule sets initial principal repayments at €1 million in 2025,
€2.5 million in 2026, and €5 million in 2027. Furthermore, the
agreement incorporates a commitment to pay annual royalties of 2%
on certain revenues over a six-year period starting on January 30,
2024, with a cap of €10 million. Finalization of this agreement is
contingent inter alia upon a revaluation of the first tranche's
warrant exercise price to €1.24, which will be proposed at the next
Annual General Meeting (AGM) on June 6, 2024. Additionally, the
agreement stipulates that €7 million in funding must be secured
through licensing deals, partnerships, equity raises, or other
means by April 30, 2025.
"We are very pleased to have reached a favorable restructuring
agreement with the EIB, as it defers the majority of our repayments
to 2028 and 2029. The EIB, a major financial partner, has
demonstrated its confidence in our vision, its execution in the
past 2 years and our strategic objectives," commented Sacha
Loiseau, Ph.D., Chairman and CEO of Mauna Kea Technologies.
"Beyond our growth strategy and partnerships, we have been focused
on strengthening our financial structure for several months,
including bolstering our equity through the addition of Telix to
our shareholder base. The rescheduling of our maturities is also a
crucial step in enhancing our financial visibility and aligning it
with our cash flow generation horizon."
***
About Mauna Kea Technologies Mauna Kea Technologies is a
global medical device company that manufactures and sells
Cellvizio®, the real-time in vivo cellular imaging platform. This
technology uniquely delivers in vivo cellular visualization which
enables physicians to monitor the progression of disease over time,
assess point-in-time reactions as they happen in real time,
classify indeterminate areas of concern, and guide surgical
interventions. The Cellvizio® platform is used globally across a
wide range of medical specialties and is making a transformative
change in the way physicians diagnose and treat patients. For more
information, visit www.maunakeatech.com.
Disclaimer This press release contains forward-looking
statements about Mauna Kea Technologies and its business. All
statements other than statements of historical fact included in
this press release, including, but not limited to, statements
regarding Mauna Kea Technologies' financial condition, business,
strategies, plans and objectives for future operations are
forward-looking statements. Mauna Kea Technologies believes that
these forward-looking statements are based on reasonable
assumptions. However, no assurance can be given that the
expectations expressed in these forward-looking statements will be
achieved. These forward-looking statements are subject to numerous
risks and uncertainties, including those described in Chapter 3 of
Mauna Kea Technologies' 2022 Universal Registration Document filed
with the Autorité des marchés financiers (AMF) on June 28, 2023
under number D-23-0545, which is available on the Company's website
(www.maunakeatech.fr), as well as the risks associated with changes
in economic conditions, financial markets and the markets in which
Mauna Kea Technologies operates. The forward-looking statements
contained in this press release are also subject to risks that are
unknown to Mauna Kea Technologies or that Mauna Kea Technologies
does not currently consider material. The occurrence of some or all
of these risks could cause the actual results, financial condition,
performance or achievements of Mauna Kea Technologies to differ
materially from those expressed in the forward-looking statements.
This press release and the information contained herein do not
constitute an offer to sell or subscribe for, or the solicitation
of an order to buy or subscribe for, shares of Mauna Kea
Technologies in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities laws of any such jurisdiction. The
distribution of this press release may be restricted in certain
jurisdictions by local law. Persons into whose possession this
document comes are required to comply with all local regulations
applicable to this document.
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Mauna Kea Technologies investors@maunakeatech.com
NewCap - Investor Relations Aurélie Manavarere / Thomas
Grojean +33 (0)1 44 71 94 94 maunakea@newcap.eu
Mauna Kea Technologies (EU:ALMKT)
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