Fermentalg bolsters position by raising capital and issuing new shares

[France] French specialist in microalgae Fermentalg is celebrating raising its capital increase by €12.6 million (US$14.8 million) to accelerate its growth in natural food colorings, nutrition and health. The increase will give the company the additional means to finance its development, notably regarding the partnership signed with DIC Corporation.

In September, Fermentalg joined forces with Japanese chemical company the DIC Corporation to target the fast-growing market for natural alternatives to artificial food colorings, bringing together Fermentalg’s unique microalgae strain bank and integrated biotechnology platform with DIC’s significant applied research, industrial and commercial resources.

“I would like to thank all of our shareholders, both old and new, for the support and continued faith they have shown in taking part in this capital increase,” says Philippe Lavielle, Chairman and CEO of Fermentalg.

“Combined with the bond issue which will be subscribed by DIC Corporation by November 30, 2017 at the latest, the operation will give us the financial means needed to confidently pursue our strategic roadmap and bring our innovation to the markets.”

Key characteristics of the operation

Demand for the capital increase resulted in the issue of 6,997,715 new shares at a unit price of €2.50 (US$2.94), i.e. an oversubscription of 159 percent on the initial offering, taking the total amount to €17,494,288.

Irreducible subscriptions resulted in the issue of 4,163,848 shares following the exercise of 94.71 percent of preferential subscription rights. Reducible subscriptions resulted in the issue of 2,833,867 shares.

The decision by Fermentalg to exercise the extension clause in full resulted in the issue of 5,055,616 new shares and an increase of €12,639,040 (US$14,857,886.67). Accordingly, reducible subscriptions will only be allocated in part to 891,768 shares.

Following settlement-delivery on 23 October 2017, Fermentalg’s capital will be made up of 17,145,135 shares. A request has been submitted to admit the new shares for trading for new shares on Euronext Paris on the same line as existing shares (ISIN code:FR0011271600 – Ticker: FALG).

The stake of a shareholder who held 1.00 percent of the capital of the company prior to the increase but who did not subscribe to the operation is now reduced to 0.71 percent.

The prospectus linked to the capital increase was approved by the French markets authority, the AMF.


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