Recycling / Circular Economy
Carbios announces the success of its capital increase
Not to be published, distributed or disseminated, directly or indirectly, in the United States of America, Australia, Canada or Japan. ?This an advertisement and not a prospectus within the meaning of Regulation (EU) 2017/1129, as amended.
• The final gross amount of the capital increase (issue premium included) is € 141 million and results in the issue of 5,558,695 new shares
• The capital increase was subject to total demand of approximately €173 million, i.e. a subscription rate of 141.2% (of which 90.7% on an irreducible basis)
• Full exercise of the extension clause
• Carbios' market capitalisation1 stands at € 569 million on a non-diluted basis based on the closing price of €33.8 at 7 July 2023
• The proceeds of the capital increase allow Carbios to implement its industrial and commercial strategy with the construction in France of the world's first PET bio-recycling plant
Emmanuel Ladent, CEO of Carbios says “The success of this transaction – the largest carried out on Euronext Growth since 2015 – is aligned with our collective challenge: fighting plastic pollution. Thanks to the support of our shareholders and these new resources, we are able to build and operate the world’s first PET bio-recycling plant and extend the benefits of our technology to other types of plastic. Harnessing a proprietary technology protected worldwide, Carbios intends to become a leader in the fast-growing recycled PET market. I thank all our long-standing and new shareholders who have expressed their trust and support in this project, which will create both economic and environmental value.”
Philippe Pouletty, Chairman of the Board of Directors of Carbios adds: “This successful capital increase in a difficult market environment confirms Carbios' ambition to become a world leader in the circular economy of plastics to preserve the planet.”
Use of proceeds of the Capital Increase with PSR Maintained
Approximately 85% of the net proceeds of the issue of the New Shares will be used to finance the construction of the first plant, with an estimated processing capacity of 50,000 tonnes a year and an estimated investment of approximately €230 million. In this respect, it is specified that the proportion of the investment in the first plant not funded from the net proceeds of the issue will be funded through financing to be received from Indorama Ventures (around €110 million), subsidies from the French government (€30 million) and from the Grand-Est Region (€12.5 million) and by part of the Company’s available cash (totalling €83 million as at 31 May 2023).
The Company will use the remainder of the net proceeds from the issue of the New Shares along with the net proceeds from the full exercise of the extension clause to finance expenses related to its PET R&D activities and to step up research on other polymers and/or further applications of its technologies.
A summary description of Carbios' business is provided in section 2.1. of the summary of the prospectus approved by the Autorité des marchés financiers on June 21, 2023, under number 23-236, which is available free of charge from Carbios, on the Company's website, on the website of the Autorité des marchés financiers and in the press release issued by Carbios on June 22, 2023.
Results of the Capital Increase with PSR Maintained
At the end of the subscription period on 7 July 2023, total demand concerned 6,827,273 New Shares, i.e. an oversubscription rate of 141.2%.
• 4,382,154 New Shares were subscribed on an irreducible basis, accounting for approximately 78.83% of the New Shares to be issued.
• Demand on a reducible basis concerned 2,325,128 New Shares and will therefore be allocated in part only, with 1 176 541 New Shares distributed according to a coefficient of 0.532543992 calculated based on the number of PSR presented in support of irreducible subscriptions without resulting in the allocation of fractions of New Shares and without the allocation being able to exceed the quantity of New Shares requested on a reducible basis.
In view of the strong demand, the CEO of Carbios, acting on delegation from the Board of Directors, has decided to fully exercise the extension clause to the tune of 725,047 additional shares, thus increasing the number of New Shares from 4,833,648 to 5,558,695.
Consequently, the gross amount of the Capital Increase with PSR Maintained (issue premium included) amounts to € 141 million and results in the issue of 5,558,695 New Shares at a subscription price of €25.32 per New Share (i.e. €0.70 with a par value and an issue premium of €24.62).