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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Contacts:
Mauna Kea Technologies
investors@maunakeatech.com
NewCap Investor Relations
Aurélie Manavarere Thomas Grojean
+33 (0)1 44 71 94 94
maunakea@newcap.eu
