Carbios successfully completes its capital increase and raises €114 million, setting a key milestone for its industrial development plans
This press release shall not be published, distributed or disseminated, directly or indirectly, in the United States of America, Australia, Canada or Japan.
- Strong demand results in the exercise of the increase option, within the limits granted by the Company’s general meeting, enabling to raise a final gross amount of €114 million and the issuance of 3,000,000 new shares
- The total demand reached 6,224,462 shares, representing a subscription rate of 207% (of which 15,3% on an irreducible basis in the context of the priority subscription period)
- International leading investors expressed their intention to subscribe for €190.0 million in the framework of the Global Offering, representing 80% of the total demand
- Retail investors (existing shareholders wishing to subscribe beyond their equity stake within the priority period as well as new shareholders) have expressed their interest in the Offering, their demand amounting to €10 million
- Following the transaction, BOLD (L’Oréal’s venture arm), Michelin Ventures and Copernicus Wealth Management hold 5.91%, 4.36% and 5.90% of Carbios’ share capital respectively and the free float amounts to 80.89% of the share capital
- L’Occitane Group has subscribed to the transaction for an amount of €10 million and thus holds 2.36% of the capital of Carbios
- The proceeds of the capital raised allow Carbios to pursue its strategy with the construction of a first of a kind 100% PET recycling production unit using its enzymatic technology
Clermont-Ferrand, France, May 10th, 2021 (08:30pm CEST) – Carbios (Euronext Growth Paris: ALCRB), the company pioneering new enzymatic solutions to reinvent the lifecycle of plastic and textile polymers (the “Company”), today announces the successful completion of its capital increase launched on May 3, 2021 which was without shareholders’ preferential subscription rights by way of a public offering and with a priority subscription period, on an irreducible basis (à titre irréductible) only, to its existing shareholders and a global offering (the “Offering”), for an amount (including the issue premium) of €114 million, after exercise of the increase option (clause d’extension), within the limits granted by the Company’s general meeting.
BNP Paribas, Bryan, Garnier & Co Limited, Bryan Garnier Securities, J.P. Morgan, Natixis and ODDO BHF SCA acted as global coordinators and joint bookrunners in connection with the Offering (together, the “Managers”).
“The outstanding success of this capital increase gives us the means to pursue our strategy with the construction of a first of a kind 100% PET recycling facility exploiting our technology and to further enhance our development while plastic industry is at a turning point of its evolution. On behalf of the entire Carbios team, I would like to thank all of our historical and new shareholders which have placed their trust in us through their subscriptions to this capital increase. Together, we are building today a sustainable circular plastic economy that will benefit future generations,” said Jean-Claude Lumaret, CEO of Carbios.
USE OF PROCEEDS
The Company is planning to use the funds raised mainly to finance:
- the construction of a reference unit using its enzymatic technology for recycling 100% of PET, the production capacity of which is estimated at 40,000 tons per year and for which the investment is estimated at around €100 million (approx. 65% of the net proceeds of the issue); in this regard, it is specified that the part of the investment in the reference unit not financed through the net proceeds of the issue will be financed, when the time comes, through other sources of financing;
- the operational expenses of the Company (approx. 5% of the net proceeds of the issue);
- operational expenses related to the demonstration plant under construction on the Cataroux industrial site of which €10 to 15 million still have to be financed by the Company (approx. 5% of the net proceeds of the issue); in this regard, it is specified that the part of the investment in the demonstration plant not financed through the net proceeds of the issue will be financed, when the time comes, through other sources of financing;
- expenses related to its R&D activities specific to PET and PLA, and the deployment of its research activities for other polymers and/or other applications of its technologies (approx. 10% of the net proceeds of the issue); and
- the rationalization of its portfolio in order to develop its biodegradation technologies beyond PLA (approx. 15% of the net proceeds of the issue).
Based on cash flow items to date and forecasted Company’s expenses, the net proceeds from the issue should enable the Company to achieve its strategic objectives and cover its working capital requirements until the end of 2023.
TERMS OF THE OFFERING
The new shares not subscribed within the priority period as well as the new shares issued pursuant to the exercise of the increase option were subject to a global offering (the “Global Offering”) comprised of (a) an open price public offering in France (the “Public Offering”) primarily intended for retail investors and (b) an international private placement (the “International Private Placement”) (i) in the European Union (including France) and in certain other countries (excluding the United States, Canada, Australia and Japan); and (ii) in the United States to a limited number of “qualified institutional buyers” (“QIBs”) within the meaning of Rule 144A (“Rule 144A”) under the U.S. Securities Act of 1933, as amended (the “Securities Act”) and/or institutional “accredited investors” within the meaning of Rule 501(a)(1), (2), (3), (7), (8), (12) or (13) of Regulation D of the Securities Act (“IAIs”) pursuant to an exemption from registration under Section 4(a)(2) of the Securities Act.
The subscription price of the new shares was set by the Company’s board of directors on May 10, 2021 at €38 per new share, representing a discount of 7.3% on the €40.98 closing price of May 7, 2021 and of 8.8% on the €41.68 5-trading day volume weighted average price preceding May 7, 2021 (included).
The capital increase, of an aggregate amount of €114 million, issue premium included, will result in the issuance of 3,000,000 new shares, i.e. 36.7% of the Company’s share capital.
In the context of the priority subscription period granted to them, the demand from the Company’s existing shareholders amounted to €36.2 million, representing 32% of the total capital increase, of which €25.4 million excluding the subscription commitments described below. International leading investors expressed their intention to subscribe for €190.0 million in the framework of the Global Offering, representing 80% of the total demand. Finally, retail investors (existing shareholders wishing to subscribe beyond their equity stake within the priority period as well as new shareholders) have expressed their interest in the Offering, their demand amounting to €10 million.
Subscriptions within the framework of the capital increase, including those from the Company’s existing main shareholders or new investors (BOLD and Michelin Ventures), which committed to participate in the Offering for a combined amount of €11.4 million, were allocated as follows:
|Nb. of existing shares (non-diluted basis)||% of share capital before the Offering||Subscription commitments (in euros)||Subscriptions received (in euros)||o/w on irreducible basis||o/w other||Subscriptions (number of new shares subscribed)||Stake in the capital increase
|% share capital after the Offering|
|Business Opportunities for L’Oréal Development (BOLD)||482,834||5.91%||6,741,732||6,741,732||6,209,504||532,228||177,414||6,741,732||660,248|
To the Company’s knowledge, the distribution of the Company’s shareholding (on a non-diluted basis) on the date of the AMF’s approval on the Prospectus (as defined below) and following the completion of the capital increase was and will be as follows:
|Before the Offering||After the Offering|
|Exercisable Voting Rights
|Exercisable Voting Rights
|Number||% of capital||Number of Voting rights||% of voting rights||Total number of shares||% of capital||Total number of voting rights||% of voting rights|
|Funds managed by Truffle Capital||46,511||0.57%||46,511||0.57%||46,511||0.42%||46,511||0.42%|
|Copernicus Wealth Management SA(2)||635,392||7.78%||635,392||7.77%||658,392||5.90%||658,392||5.89%|
|Business Opportunities for L’Oréal Development (BOLD)||482,834||5.91%||482,834||5.90%||660,248||5.91%||660,248||5.91%|
- Excludes the shares of Truffle Capital funds which have a dedicated separate line in the table
- Shares held by funds and / or individuals whose management company is Copernicus Wealth Management
The exercise of all securities giving access to the Company’s share capital at the date of the AMF’s approval on the Prospectus would result in the issuance of 712,648 new ordinary shares, representing 6.4% of the share capital of the Company following the completion of the capital increase.
To the Company’s knowledge, no other shareholder owns, directly or indirectly, alone or in concert, more than 10% of the capital and voting rights of the Company.
Admission of new shares
The settlement and delivery of the new shares and their admission to the Euronext Growth multilateral trading facility of Euronext in Paris are expected for May 12, 2021. The new shares will be listed on the same line as the Company’s existing ordinary shares, will carry dividend rights and will be immediately fungible with the Company’s existing shares.
Abstention and lock-up commitments
The Company has agreed on a lock-up period expiring 120 calendar days following the date of settlement of the new shares, subject to certain customary exceptions set out in the note d’opération and to a possible waiver by the Managers.
Certain shareholders with a significant stake in the Company (BOLD and Michelin Ventures), together holding 10.36% of the Company’s share capital, and directors have also signed lock-up commitments taking effect on the date these commitments were signed and continuing for 90 days from the date of settlement of the new shares, subject to certain customary exceptions.
The Offering is subject to an underwriting agreement between the Company and the Managers which may be terminated by the Managers at any time up to (and including) the settlement date, subject to certain customary conditions for this type of agreement.
Availability of the prospectus
The prospectus, which received the AMF approval n°21-126 on April 30, 2021 (the “Prospectus”), consists of (i) the 2020 Universal Registration Document filed with the AMF on April 14, 2021 under number D.21-0306 (the “URD”), (ii) the amendment to the URD filed with the AMF on April 30, 2021 under number D.21-0306-A01 (the “URD Amendment”), (iii) a note d’opération (the “Note d’Opération”) and (iv) a summary included in the Note d’Opération.
The Prospectus is available on the Company’s website (www.carbios.com/en) and the AMF’s website (www.amf-france.org).
Investors are advised to carefully consider the risk factors described in section 3 of the URD, as well as in section 2 of the Note d’Opération before deciding whether to invest in the new shares. Should all or any part of these risk factors materialize, Carbios’ businesses, financials, results, development or prospects may be negatively affected.
Carbios, a green chemistry company, develops biological and innovative processes representing a major innovation in the end of life of plastics and textiles. Through its unique approach of combining enzymes and plastics, Carbios aims to address new consumer expectations and the challenges of a broader energy transition by taking up a major challenge of our time: plastic and textile pollution.
Established in 2011 by Truffle Capital, the mission of Carbios is to provide an industrial solution to the recycling of PET plastics and textiles (the dominant polymer in bottles, trays, textiles made of polyester). The enzymatic recycling technology developed by Carbios deconstructs any type of PET plastic waste into its basic components which can then be reused to produce new PET plastics of a quality equivalent to virgin ones. This PET innovation, the first of its kind in the world, was recently recognized in a scientific paper published in the prestigious journal Nature. Additionally, Carbios is working hand in hand with multinational brands — like L’Oréal, Nestlé Waters, PepsiCo and Suntory Beverage & Food Europe — to implement its technology, and to lead the transition toward a truly circular economy.
The Company has also developed an enzymatic biodegradation technology for PLA (a bio sourced polymer) based single use plastics. This technology can create a new generation of plastics that are 100% compostable in domestic conditions, integrating enzymes at the heart of the plastic product. This disruptive innovation has been licensed to Carbiolice, a joint venture created in 2016, in which Carbios now holds a majority stake alongside the SPI fund operated by Bpifrance.
For more information, please visit www.carbios.com/en
Carbios (ISIN FR0011648716/ALCRB) is eligible for the PEA-PME, a government program allowing French residents investing in SMEs to benefit from income tax rebates.
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 Shares held by funds and / or individuals whose management company is Copernicus Wealth Management
Carbios successfully completes its capital increase and raises €114 million, setting a key milestone for its industrial development plans10 May 2021 | 20h30
This press release shall not be published, distributed or disseminated, directly or indirectly, in the United States of America, Australia, Canada or Japan. Strong...