On December 22, 2022 AB Science SA (Euronext – FR0010557264 – AB) reported today that it has received payment of €6.0 million
as the first tranche of a €15 million loan from the European Investment Bank (EIB)(Press release, AB Science, DEC 22, 2022, View Source [SID1234625526]).
As previously announced [1], the agreement signed with the EIB provides a financing in two tranches of EUR
6.0 million and a third tranche of EUR 3.0 million, each subject to the fulfillment of certain conditions
precedent, which have been satisfied for the first two tranches. Each tranche is accompanied by the issue of
warrants, the number of which is calculated in relation to a reference price of 14 euros according to the
following formula : Number of warrants = Amount of the tranche / (14 x m) with m = 3.4 for tranche 1 and
3.7 for tranche 2.
The first tranche has a maturity of six years and is therefore repayable in December 2028. It carries a
capitalized annual interest rate of 9.0% and the issuance of 126,050 warrants, each giving the right to
subscribe to one ordinary share of AB Science at 8.61 euros for 15 years. These warrants represent 0.24% of
the current capital of the Company (if they were to be exercised in their entirety).
The EIB also has a put option at intrinsic value (i.e. the difference between the stock market price and the
exercise price) allowing it to require the Company to repurchase all or part of the warrants then exercisable
but not yet exercised, under certain circumstances (for example in the event of a change of control or at the
reimbursement date of the first tranche). In addition, the Company has a right of first refusal to redeem any
warrants offered for sale to a third party, subject to certain exceptions.
On the basis of 126,050 new shares of the Company that could be issued upon exercise of all of these
warrants, the Company could potentially receive gross proceeds amounting to 1,085,290 euros. There is no
guarantee that the EIB will exercise all or part of the warrants or that the Company will receive any proceeds
from the exercise of these warrants.

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