Europlasma Announces Its 2015 Turnover, Outlines Its Financial Position and Establishes New Equity Line Financing to Fund Growth in 2016

The concurrent development of the 3 business units is still consuming cash for the time being, especially for CHO POWER until the 2 additional engines are put into operation, which will enable the CHO Morcenx plant to reach nominal capacity and economic performance.

At 31 December 2015, the group's cash amounted to €6.8 million. This includes financing of the engines spread over the financial year in accordance with the percentage of completion of the contract by the supplier.

To meet its cash requirements in 2016 to support its development, the group is implementing a funding plan that combines equity line financing with actions on working capital requirements.

3 - Equity line 

The group has secured an equity line for a maximum amount of €10 million with Kepler Cheuvreux.

This equity line will enable the group to gain more leeway, diversify its sources of funding, and meet its cash requirements with flexibility.

The terms of the transaction, are given below, and an explanatory Q&A document on the equity line is available on http://www.europlasma.com.

Jean-Eric Petit, Chief Executive Officer of Europlasma, made the following statement: "The growth in revenue in all three business units reflects the company's recovery strategy over the past two years. Vigorous development and recovery efforts will continue but will require additional funding in 2016. The equity line has already proved its relevance in supporting the development of other industrial companies. Through its modularity, it will provide the Group with additional visibility and comfort. Access to sufficient financing for a growth stock like Europlasma and in a tough stock market environment proves the strength of our positioning and vision, and the relevance of our operational advances."

Terms of the transaction 

This financing has a flexible structure based on two tranches: a first tranche of €5 million starting from the signature of the agreement, and a second tranche bringing the total amount to €10 million, that can be activated 6 months later.  

Europlasma will control the pace of the financial support provided by Kepler Cheuvreux and may suspend or terminate the agreement at any time.

Within the framework of this system, and provided that the terms defined by the parties are respected, Kepler Cheuvreux has made a firm and final commitment to subscribe, over the next 6 months, for an amount equal to €5 million, i.e. an indicative number of shares of approximately 7,128,647^[(1)], representing 10.2% of the Company's current share capital.

The issue price of new shares will correspond to the weighted average market price preceding the issue, reduced by a maximum discount of 8%. This discount will enable Kepler Cheuvreux, which does not aim to retain Europlasma's share capital, to act as a financial intermediary and to guarantee the subscription of shares as part of a firm commitment.

This transaction is implemented pursuant to the 10^th resolution of the combined annual shareholders' meeting of 24 June 2015.

Should the 1st tranche^[(2)] be used in full, a shareholder owning 1.00% of Europlasma's capital before its implementation would see their stake decrease to 0.91% of the capital on a non-diluted basis^[(3)], and 0.95% of the capital on a diluted basis^[(4)].

If necessary, the implementation of the 2^nd tranche will be detailed in a press release.

The number of shares issued as part of this agreement and admitted to trading will be published in a Euronext market notice and communicated on the Europlasma website.

For more information regarding the Equity Line, a Q&A is online on the company's website at the following link http://www.europlasma.com/en/regulated-information/financial-press-releases.html.

1. Based on an indicative average share price of €0.70 over the last two months
2. Resulting in the issue of 7,128,647 new shares
3. Based on 69,667,524 shares comprising the share capital of Europlasma at 10 February 2016
4. In the event of the issue of 63,936,129 shares from the exercise of all existing dilutive instruments (including this finance line) at the date of this press release

Disclaimer 

This release contains provisional information on the best estimates of the Management at the date of their publication. This information is by nature subject to risks and uncertainties which are difficult to predict and generally outside the Group's field of action. These risks include the risks listed in the Group's reference document available on its website http://www.europlasma.com.

Consequently, the future performance of the Group may differ significantly from the provisional data communicated and the Group can make no commitment to the achievement of these provisional elements. 

About EUROPLASMA 

At the heart of environmental issues, Europlasma designs and develops innovative plasma solutions for renewable energy generation and hazardous waste recovery, as well as related applications for multi-sector companies wishing to reduce their environmental footprint.

Europlasma is listed on Alternext (FR0000044810-ALEUP). For more information: http://www.europlasma.com

Contact
Europlasma
Anne BORDERES
Tel: +33(0)556-497-000
E-mail: contactbourse@europlasma.com

Kepler Cheuvreux
Thierry du Boislouveau
Tel.: +33(0)1-53-65-36-85
thierry.du-boislouveau@keplercf.com