European High Growth Opportunities Securitization Fund (EHGO), faced with repeated failures of the issuer of Horizontal Software

LONDON--()--The following statement is a declaration from the European High Growth Opportunities Securitization Fund (EHGO):

The European High Growth Opportunities Securitization Fund ("EHGO"), in view of the repeated failures of the issuer Horizontal Software, has been compelled to file an application with the Lille consular for the reinstatement of its rights.

As a matter of fact, pursuant to a financing agreement dated 25 July 2018, modified by the amendments of 26 July 2018 and 17 September 2018, EHGO has undertaken to issue, for the benefit of Horizontal Software, the next-generation software publisher, financing for a total nominal amount of € 2 million bond issue via a reserved issue of convertible or exchangeable bonds in new and/or existing shares ("OCEANES") accompanied by share subscription warrants ("BSA").

To date, EHGO has subscribed to 99 bonds with a par value of EUR 900 000; 12 have been converted by Horizontal Software.

Following a new conversion notification sent by EHGO on 22 November 2018, Horizontal Software did not deliver the shares or pay the compensation penalty, in breach of its contractual obligations. Consequently, on 13 February 2019, EHGO was obliged to declare an event of default and to demand the early redemption of the 87 bonds subscribed and not yet converted.

Therefore, EHGO holds against Horizontal Software a principal claim for the amount of EUR 870 000, in addition to the contractual late payment penalties due as at 12 December 2018.

Despite several futile formal notices, Horizontal Software has made no payment and unilaterally terminated, without any explanation, the discussions which EHGO had agreed to initiate in order to try to find an acceptable and amicable solution.

Under these circumstances, EHGO was left with no other option; to preserve its rights, it has sought to obtain a preventative measure on the bank accounts of Horizontal Software and to take legal action in the Commercial Court of Lille-Métropole, in order to receive payment for the debt due.

The disregard for its contractual obligations coupled with the financial results published by Horizontal Software has moreover lead to concerns about the financial health of the group and resulted in EHGO, in its capacity as a shareholder and creditor, to raise questions regarding management's ability to make the necessary decisions in order to ensure the sustainability of the company.

The original source-language text of this announcement is the official, authoritative version. Translations are provided as an accommodation only, and should be cross-referenced with the source-language text, which is the only version of the text intended to have legal effect.

Contacts

Anais Batistini – Chief of staff
contact@alphablueocean.com

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Contacts

Anais Batistini – Chief of staff
contact@alphablueocean.com