Cellnovo Announces Arrangement of an Equity Line to Support its Development

PARIS--()--Regulatory News:

The Cellnovo group (“Cellnovo” CLNV: EN Paris), a medical technology company marketing the first mobile, connected, all-in-one diabetes management system, is announcing that it has arranged an equity line with Kepler Cheuvreux.

The Company’s Chief Executive Officer, acting pursuant to the powers delegated to her by the Board of Directors and in accordance with the Fourteenth Resolution of the AGM on June 24, 2016, decided on March 17, 2017 to go ahead with this transaction.

Drawing on the full amount of this equity line would enable the Company to raise €8.9 million in financing using the current share price(1) as guidance. This will top up the €10.7 million in cash Cellnovo held at December 31, 2016. The Company estimates its cash requirement over the next 12 months to the end of the first quarter of 2018 at between €6 million and €7 million. To cover this financing requirement over the next 12 months and possibly beyond, Cellnovo is currently negotiating around €10 million in debt financing, with an initial payment of €5 million to €6 million. The details are presented more extensively in the prospectus approved by the AMF (visa no. 17-098 dated March 17, 2017).

Pursuant to the terms of the agreement, Kepler Cheuvreux gave a full and firm commitment to subscribe for 1,500,000 shares at its own initiative over a timescale not exceeding 24 months, subject to the contractual conditions being fulfilled. Cellnovo retains the option of suspending or terminating this agreement at any time.

With Kepler Cheuvreux acting as financial intermediary and underwriter for the transaction, the shares will be issued at the volume-weighted average share price over the two trading sessions preceding a day on which the share warrants are exercised, less a maximum discount of 7.0%.

Assuming this equity line were to be used in full(2), a shareholder owning 1.00% of Cellnovo’s share capital prior to the transaction would see a reduction in their shareholding to 0.88% on an undiluted basis(3) and to 0.84% on a fully diluted basis(4).

The number of shares issued pursuant to this agreement and admitted to trading will be announced in a Euronext notice and on Cellnovo’s website.

A prospectus approved by the AMF (visa no. 17-098 dated March 17, 2017 has been prepared for the transaction. Cellnovo wishes to draw investors’ attention to the “Risk factors” section in Chapter 2 of the Note d’opération (securities note) no. 17-098 dated March 17, 2017 and to the update to the liquidity and dilution risks in Chapter 3 of the updated registration document filed on March 17, 2017 under no. D. 16-0576-A01.

(1) On the indicative basis of a Cellnovo share price of €6.40 (representing the weighted-average share price in the 21 trading sessions preceding March 17, 2017).
(2) Leading to the issuance of up to 1,500,000 new shares
(3) Based on the 12,025,587 shares making up Cellnovo’s share capital at December 31, 2016
(4) Taking into account the issuance of a maximum number of 510,500 new shares through the exercise of all the existing dilutive instruments (excluding this equity line).

About Cellnovo

An independent medical technology company specialising in diabetes, Cellnovo has developed and markets the first mobile, connected, all-in-one diabetes management system that helps make life easier for patients. Compact, tubeless, intuitive and entirely connected, Cellnovo’s insulin pump comprises a mobile touchscreen controller with an integrated blood-glucose meter. This unique device allows optimal management of insulin injections whilst ensuring extensive freedom of movement and peace of mind for patients. Thanks to the automatic transmission of data, it also allows the patient’s condition to be continually monitored by family members and healthcare professionals in real time. Cellnovo is currently participating in several major Artificial Pancreas projects with Diabeloop, TypeZero and Horizon 2020 to develop automated insulin delivery systems.

For further information please visit www.cellnovo.com

About the Cellnovo Diabetes Management System

Compact, tubeless, intuitive and entirely connected, Cellnovo’s insulin pump comprises a mobile touchscreen controller with an integrated blood-glucose meter. This unique device allows optimal management of insulin injections with drop-by-drop precision, whilst ensuring extensive freedom of movement and peace of mind for patients. Thanks to the automatic transmission of data, it also allows the patient’s condition to be continually monitored by family members and healthcare professionals in real time.

Cellnovo is listed on Euronext, Compartment C
ISIN: FR0012633360 – Ticker: CLNV

Contacts

Cellnovo
Chief Executive Officer
Sophie Baratte
investors@cellnovo.com
or
NewCap
Investor Relations
Tristan Roquet Montégon
+ 33 1 44 71 00 16
or
Media Relations in France
Nicolas Merigeau
+ 33 1 44 71 94 98
cellnovo@newcap.eu
or
Consilium Strategic Communications
Media Relations in United Kingdom
Chris Gardner, Chris Welsh, Laura Thornton
+44 20 3709 5700
cellnovo@consilium.com

Contacts

Cellnovo
Chief Executive Officer
Sophie Baratte
investors@cellnovo.com
or
NewCap
Investor Relations
Tristan Roquet Montégon
+ 33 1 44 71 00 16
or
Media Relations in France
Nicolas Merigeau
+ 33 1 44 71 94 98
cellnovo@newcap.eu
or
Consilium Strategic Communications
Media Relations in United Kingdom
Chris Gardner, Chris Welsh, Laura Thornton
+44 20 3709 5700
cellnovo@consilium.com