Evolva Holding SA / Key word(s): Strategic Company Decision PRESS RELEASE | AD HOC ANNOUNCEMENT PURSUANT TO ART. 53 LR Evolva informs about renegotiation of financing arrangement, initiates review of strategic alternatives and revokes guidance Reinach, 14 June 2023 - Evolva (SIX: EVE), a pioneer in the field of natural molecules and industrial biotech, is in discussions with its financing partner Nice & Green after disagreements regarding its outstanding financing lines. Negotiations to clarify the different interpretations and to find a solution that will secure the financing of Evolva at least until the end of this year are ongoing. In light of these events, the Board of Directors of Evolva is initiating a comprehensive review of strategic alternatives to accelerate discussions with strategic partners or to facilitate other strategic transactions. As this will require the full attention of the leadership team, the guidance for 2023 is revoked. Based on the existing financing agreement, Evolva currently has open financing lines with Nice & Green of CHF 12 million. The financing partner has recently informed the company about a different interpretation of the terms applicable to these lines. Evolva has received a Letter of Intent (LOI) from Nice & Green to solve the situation and the parties are moving towards reaching an agreement that is in the best interest of Evolva and all of its stakeholders. The objective is to secure the financing of Evolva at least until the end of 2023. There is no assurance that the parties will reach an agreement. Evolva will inform about the result of the negotiation at the appropriate time. In view of these events, the Board of Directors has decided to initiate a comprehensive review of strategic alternatives, to accelerate discussions with strategic partners or to facilitate other strategic transactions, including a potential sale of the company. Houlihan Lokey has been retained by Evolva as financial advisor to support the process. The Board of Directors of Evolva acknowledges and highlights the significant positive developments under the new leadership team led by Christian Wichert. Since he became CEO in early February 2022, the company achieved notable milestones and successes along the entire value chain. Most notably, the company increased product-related sales by +62% in 2022, while the associated gross contribution margin grew from negative -59% in 2021 to positive +16% in 2022. More recently, Evolva signed an important multi-year contract with a leading CMO partner which will significantly improve Evolva's competitive position across multiple products from 2024 onwards and help to boost Vanillin sales. Several new products have been launched recently, are in market launch preparation, or are part of Evolva's attractive innovation pipeline. Based on these positive business developments, Evolva is confident regarding its mid-term prospects. The current financing situation, however, poses a significant challenge to the company and requires the full attention of the Board of Directors and management. Therefore, the immediate focus will shift to the review of strategic alternatives. Consequently, the guidance for 2023 is revoked. Evolva will provide an outlook as well as a strategic update together with the half-year results on 24 August 2023. Important dates
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Disclaimer Additional features: File: PRESS RELEASE | AD HOC ANNOUNCEMENT PURSUANT TO ART. 53 LR Evolva informs about renegotiation of financing arrangement, initiates review of strategic alternatives and revokes guidance Reinach, 14 June 2023 - Evolva (SIX: EVE), a pioneer in the fi End of Inside Information |
| Language: | English |
| Company: | Evolva Holding SA |
| Duggingerstrasse 23 | |
| 4153 Reinach | |
| Switzerland | |
| Phone: | +41 61 485 20 00 |
| Internet: | www.evolva.com |
| ISIN: | CH0021218067 |
| Valor: | 2121806 |
| Listed: | SIX Swiss Exchange |
| EQS News ID: | 1656353 |
| End of Announcement | EQS News Service |
1656353 14-Jun-2023 CET/CEST
