MedinCell Successfully Renegotiates the Drawdown Conditions of the Last Tranche of The EIB Loan and Secures an Additional €5m of Non-dilutive Funding

• Immediate availability of the last €5 million tranche of the €20 million European Investment Bank (EIB) total loan
• Strengthened financial visibility, beyond 2021 in most scenarios

MONTPELLIER, France--(BUSINESS WIRE)--“The renegotiation of EIB loan conditions complements other measures taken to enhance our financial visibility in the context of the Covid-19 crisis,” explains Jaime Arango, Chief Financial Officer of MedinCell. “Taking into account the €5 million immediately available and the PEG (Prêt Garanti par l’Etat / State Guaranteed loan) of €10.9 million, as well as the liquidity detailed at the time of the publication of our consolidated results a few days ago, we have more than €30 million of available financial resources. This amount can be put into perspective with the cash burn linked to the activity which amounted to €12.5 million during the last financial year ending March 31, 2020, in line with our forecasts. Anticipating an evolution of 10 to 15% of our expenses for the current financial year, not counting our Covid-19 project, our financial visibility remains comfortable and allows us to project beyond 2021.”

As a reminder, the EIB provided support of €20 million to MedinCell (Paris:MEDCL), to be received in three instalments in March 2018. The first two were paid in June 2018 and July 2019. This loan is repayable beyond 1 June 2023. At that time MedinCell should already be receiving royalty revenues from the sale of the first products based on its proprietary technology.

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