Laurent Carme, Chief Executive Officer of McPhy, stated: “The beginning of 2020 was marked by a succession of commercial successes, demonstrating the industrialization of the hydrogen sector, both in France and abroad. McPhy, which was selected to equip projects such as Zero Emission Valley in the sector of mobility in France or Djewels in the sector of industry in the Netherlands, has consolidated its position as a major technological and industrial partner in the hydrogen market. Whatever the sector of activity, the McPhy teams have been able to support our clients in their transition to zero-carbon hydrogen, despite the impact of the Covid-19 pandemic.”

Despite the health crisis linked to the Covid-19, McPhy’s sales rose 24% to €5.4 million compared to €4.3 million in the first half of 2019. The gross margin on material consumption remained stable at 46% compared to 2019.

In order to successfully complete its industrialization phase, the Group has strengthened its teams since June 30, 2019. The net recruitment of 9 people over one year thus brings the workforce at 30 June 2020 to 101 employees and personnel expenses amounted to €4.1 million over the first half year, an increase of €0.6 million compared to the first half year 2019.

To maintain McPhy’s technological leadership in its markets, the R&D effort has been reinforced and amounted to nearly €2.0 million over the period (€1.5 million in the first half of 2019). Net of the effect of the tax credit and subsidies, these expenses are up by €0.5 million compared to the same period last year.
The Group has put in place all the necessary measures to deal with the Covid-19 crisis, minimize the impact on its cash flow and preserve its continuity of operation. McPhy has thus contracted additional credit lines guaranteed by the French State for an amount of €4 million and has reinforced its financial flexibility by renewing an equity line with Kepler Cheuvreux on April 10, 2020.

As of June 30, 2020, McPhy had €24 million in cash and cash equivalents, a significant increase compared to the first half of 2019, resulting from the drawdowns performed on these lines of credit and equity financing for €9.1 million.

Orders booked and announced in the first half of the year:

• Order for a 20 MW electrolysis platform equipped with technology “Augmented McLyzer” to supply the largest zero-carbon hydrogen production unit in Europe, deployed by Nouryon and Gasunie (“Djewels” project).
• Order for a Starter Kit to equip the “mobility” segment of a zero-emission hydrogen ecosystem in the Centre-Val de Loire region (1).
• Order and remote installation of Piel by McPhy hydrogen and oxygen generators for the preparation of metal components for the Diax industrial group.
• Order for three McFilling stations, as definitive part, and two other stations and several electrolyzers, as conditional part, by the project company Hympulsion to equip the Zero Emission Valley project, the largest deployment of zero-emission hydrogen mobility in France (Auvergne Rhône Alpes region).

Orders booked in July 2020:

• Order for a complete zero-carbon hydrogen production and distribution chain composed of a modularized and scalable station distributing 200 kg of hydrogen per day and of a McLyzer electrolyzer, with a capacity to produce more than 400 kg of zero-carbon hydrogen per day.

In Chambéry – Inauguration of a hydrogen station equipped with a McPhy electrolyzer, for the Zero Emission Valley project

• Equipped with a McPhy’s McLyzer technology electrolyzer supplied to Atawey, this station producing green hydrogen on site was inaugurated in mid-February 2020.

Inauguration of Apex Energy’s 2 MW zero-carbon hydrogen production platform equipped by McPhy

• On June 12, 2020, Apex Energy completed the construction of a hydrogen production platform in Rostock-Laage, Germany. This hydrogen production unit will supply electricity and heating to the headquarter of the Group and a commercial area, thanks to a fuel cell.
• McPhy delivered and installed a 2 MW electrolysis platform (McLyzer 400-30), producing over 300 tons of zero-carbon hydrogen from renewable energy per year.

Inauguration of a McFilling 20-350 (or “Starter Kit”) station in Le Mans

• This first project with Total, the hydrogen station in Le Mans, installed and commissioned by McPhy in March 2020, was inaugurated alongside the project partners on July 8, 2020.
• The McFilling 20-350 station enables a recharging solution to vehicles with a pressure of 350 bar, as well as a partial recharging solution for vehicles requiring a pressure of 700 bar.
• This station will fuel, among other things, the first hydrogen bus tested by the Le Mans metropolitan area and a racing vehicle.

Footnotes

(1) To date, name of the client and the project are confidential.

Next financial communication

2020 annual revenues release, on January 26, 2021, after close of trading.

McPhy has been selected to design, build and integrate a modularized and scalable station distributing 200 kg of hydrogen per day. A McLyzer electrolyzer, with a capacity to produce more than 400 kg of zero-carbon hydrogen (using water and electricity from renewable sources) per day, will be installed on site to ensure a true zero-emission chain.

This new contract would represent a turnover of €3.6 million and would bring to 31 stations (2) and 42 MW (3) of high-power electrolysis the number of McPhy references, confirming the leap of zero-carbon hydrogen.

Footnotes

(1) To date, name of the client and of the project are confidential, as well as the project’s location.
(2) References deployed, under installation or in development. Among them: 2 stations are part of the ZEV framework contract’s conditional part [contract signature: 18, June 2020].
(3) References deployed, under installation or in development. Among them: 4 MW are part of the ZEV framework contract’s conditional part [contract signature: 18, June 2020].

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Next financial communication

First semester 2020 results release, on July 28, 2020, after close of trading.

McPhy installed and commissioned the McFilling 20-350 station (also called « Starter Kit ») in March 2020 as part of this project in Le Mans.

Already selected to equip several projects in the territories, the McFilling 20-350 hydrogen station enables a recharging solution to vehicles with a pressure of 350 bar, as well as a partial recharging solution (up to 60%) for vehicles requiring a recharging pressure of 700 bar. This station will also be used to charge the first hydrogen bus tested by the metropolis of Le Mans.

Hydrogen ensures a significant reduction in pollution from the transport sector, as this fuel does not emit polluting particles or CO2 into the atmosphere. The fast recharging time and autonomy of hydrogen vehicles, similar to internal combustion engines, also ensure their professional use.

Since April, this project has been accounted for in the 30 stations (3) in reference for McPhy and contributes to the development of a more carbon-efficient mobility in the territories.

Footnotes

(1) https://mcphy.com/en/press-releases/projects-in-zero-emission-mobility/
(2) https://www.lemans.org/en/news/the-automobile-club-de-l-ouest-hydrogen-filling-station-in-le-mans-is-open/53992
(3) References deployed, under installation or in development. Among them: 2 stations are part of the ZEV framework contract’s conditional part [contract signature: 18, June 2020]

Next financial communication

First semester 2020 results release, on July 28, 2020, after close of trading.

Apex Energy completed the construction of its hydrogen production facility in Rostock-Laage, on June 12. This plant will supply the headquarter of the Group and a commercial area with electricity and heating, thanks to a fuel cell.

McPhy delivered and installed a 2 MW electrolysis platform (McLyzer 400-30), producing over 300 tons of zero-carbon hydrogen from renewable energy per year.

Announced in a press release on March 5, 2019, this 2 MW project is part of the 41 megawatts (1) of high-power electrolysis capacity supplied by McPhy and illustrates the growing interest of manufacturers who are making a strategic shift towards low-carbon energy.

This inauguration is fully in line with the strategy developed by the German government. The country aims indeed at becoming the world leader in hydrogen technologies. To reach this purpose, Germany will invest €7 billion in order to produce 5 GW (approximately 14 TWh) by 2030 and 10 GW by 2040, scaling up the industry and making zero-carbon hydrogen competitive. Hydrogen will then be used in a wide range of applications: heavy transportation, steel production, chemical, aviation, etc.

Footnotes

(1) References: under operation, under installation or under development. Among them: 4MW are part of the ZEV framework contract’s conditional part of the [contract signature: 18, June 2020]

Next financial communication

First semester 2020 results release, on July 28, 2020, after close of trading.

McPhy teams are very proud to support this emblematic project, which embodies the energy transition at regional level.

Laurent Carme, McPhy Chief Executive Officer, stated: “McPhy teams are very proud to support this emblematic project, which embodies the energy transition at regional level. The scale of the project is making a major contribution to the industrialization of the hydrogen industry and to the reduction of its costs, thereby making clean energy more competitive compared to fossil fuels. The success of this real premiere is linked to the coordination of major public and private sector players around structuring projects for the industrial and economic development of territories.”

“Hympulsion takes a decisive step forward within the Zero Emission Valley project. Our choices illustrate all the excellence and expertise of the hydrogen sector operating in the Auvergne-Rhône-Alpes Region. At a time when the current global health crisis has resonances with the climate crisis, Hympulsion is acting and investing by combining the creation of activity, employment and the fight against climate change. We share this common ambition with our financing partners, the Innovation and Network Executive Agency and the ADEME (the French Environment and Energy Management Agency).” testified Thierry Raevel, President of Hympulsion.

As a clean alternative fuel, hydrogen produced by electrolysis significantly reduces pollution in the transport sector and represents an essential lever for a more virtuous energy mix. Hydrogen-powered vehicles have the particularity of not emitting any polluting emissions, simply water steam. Thanks to a short recharging time between 3 and 5 minutes and a range similar to internal combustion engine vehicles ones, hydrogen vehicles are ideal for professional use, combining ease of use and participation in the fight against atmospheric pollution.

Initiated by the Auvergne-Rhône-Alpes Regional council and supported by the European Union, the Zero Emission Valley (ZEV) project stands out by its scale, its innovative nature and also the quality of the partnership built between public and private sector players. With a plan targeting the deployment, before the end of 2023, of 1,200 fuel cell vehicles, 20 hydrogen stations, including several with electrolyzers to produce hydrogen from renewable electricity without emitting CO2, this project aims to make Auvergne-Rhône-Alpes the pioneering region for hydrogen mobility in France and one of the first carbon-neutral territories at the European level, while helping to create profitable models that can be replicated on a European scale.

The ZEV project responds to an environmental, industrial and economic challenge:

• Fighting global warning and contributing to the preservation of public health: produced by electrolysis using electricity from renewable sources, hydrogen is a clean energy. Hydrogen-powered vehicles therefore emit no polluting particles or CO2 into the atmosphere.
• Reindustrializing territories and participating in the creation of value in territories: the massification of these technologies will make it possible to drastically reduce acquisition costs (vehicles, stations, electrolyzers) and thus strengthen the competitiveness of clean energies compared to fossil fuels.
• Creating skilled jobs in a booming sector at the service of clean mobility and the challenges of decarbonation of territories.

On an unprecedented scale in France, the synchronized deployment of vehicles and refueling infrastructure will be carried out by Hympulsion, a company having for shareholders the Auvergne-Rhône-Alpes Regional council, ENGIE, Michelin, Banque des Territoires and Crédit Agricole through the 5 regional banks of the Auvergne-Rhône-Alpes Region (1).

With more than 50 references in France and Europe, a team of more than 100 employees spread over 4 sites in the Auvergne-Rhône-Alpes Region and a production capacity of 70 hydrogen stations per year, the three groups McPhy (leader of the consortium), Atawey and TSM decided to combine their strengths within a joint and solidarity group: “MAT”.
Selected on the basis of rigorous technical and economic criteria in a dedicated call for tenders, the consortium made up of McPhy, Atawey and TSM will, according to the framework contract, design, manufacture and integrate 14 of the 19 (2) hydrogen stations to provide, 5 of which as definitive part. The following parts of the MAT framework contract plan the deployment of nine additional stations and several electrolyzers, which ensure the on-site production of zero-carbon hydrogen.

Within the consortium, McPhy technologies will equip 5 high-capacity hydrogen stations (McFilling 400/800 kg / day, upgradeable, electrolysis and gas connection compatible) combining compactness, modularity and a high level of performance, and several McLyzer electrolyzers, outcome of a first-rate R&D. The framework contract plans to deploy 3 McFilling stations as definitive part, and to implement 2 stations and several electrolyzers as conditional part.

The project as a whole represents more than € 11 million in sales for McPhy, confirming the Group’s excellent commercial dynamics.

Now more than ever, it is essential to combine economic development and employment with environmental protection to serve the cities, regions and societies of tomorrow

“Thanks to our solid industrial organization and our proven technological solutions, our aim is to place the dual objective of user satisfaction and economic performance at the heart of this project, while guaranteeing the highest levels of equipment quality and safety. Now more than ever, it is essential to combine economic development and employment with environmental protection to serve the cities, regions and societies of tomorrow”, concluded Laurent Carme.

With 37 MW of high-power electrolysis capacity, 25 stations (3) and the signing of this emblematic contract for zero-emission mobility, McPhy is consolidating its position as a major technological and industrial partner in the hydrogen market.

With more than 620,000 liters of fossil fuels replaced and more than 1,500 tons of CO2 emissions avoided each year, this project will make it possible to respond to climate challenges, such as those set by the Green Pact for Europe, which aims to make Europe climate neutral by 2050, while demonstrating that economic development, wealth creation and preservation of the environment can be compatible.

ZEV | Key figures

• 20 hydrogen stations
• 1,600 kg of green H2 produced per day in the long run
• 1,200 hydrogen-powered vehicles
• 623,700 liters of fossil fuels saved
• 1,517 tons of CO2 emissions avoided per year

Footnotes

(1) The project is financed by the Auvergne-Rhône-Alpes Region, the ADEME (French Environment and Energy Management Agency) and the European CEF Transport fund
(2) It should be recalled the commissioning of the first hydrogen station of the ZEV project, which acted as an experiment before the regional deployment, in Clermont-Ferrand in 2019 ; and the inauguration in Chambéry, in mid-February 2020, of a Hympulsion station equipped with an Atawey distribution unit and a McPhy’s Mclyzer technology electrolyzer enabling the station to produce green hydrogen on site.
(3) References deployed, under installation or in development | April 2020 Figures

Next events

First semester 2020 results release, on July 28, 2020, after close of trading.

The Piel facilities provide a solid source of growth for McPhy and tangible economic solutions for pollution reduction for industrial companies that are concerned about their environment and committed to zero-carbon energy.

Laurent Carme, McPhy CEO, stated: “The achievement of this project demonstrates the perfect adequacy of the new design of our Piel line of equipment for light industry and confirms the constant deployment of this range internationally with a fleet of 3,000 pieces of equipment spread all over the world. This new commercial success also illustrates the growing commitment of light industry to the fight against climate change. By producing their own clean hydrogen on site, industrial companies ensure the decarbonation of their processes, cost control and energy independence. Finally, this commissioning was carried out remotely thanks to the digital supervision modules integrated in the new Piel design. The digitalization of our equipment is particularly useful in the current sanitary context, but also meets a strong demand from industrial groups which wish to obtain, in real time, a reading and an analysis of their production data, or to plan preventive maintenance operations, and thus gain in flexibility and productivity. Alongside multi-megawatt projects, the Piel facilities provide a solid source of growth for McPhy and tangible economic solutions for pollution reduction for industrial companies that are concerned about their environment and committed to zero-carbon energy.”

The commercial offer has proven to be a high-level product but with excellent value for money.

Klaser Djani, DIAX Director, added: “McPhy selection was based primarily on the availability shown by the Piel technical sales staff in wanting to meet customer needs by providing a system that was easy to manage and able to adapt to future expansion needs requested by DIAX, with a promise of post-sale technique assistance that exceeded expectations. This is Piel’s real strength, especially in an uncertain period such as the Covid-19 pandemic which brought a lot of additional constraints. Finally, the commercial offer has proven to be a high-level product but with excellent value for money.”

Based in Bosnia, DIAX selected the complete line of Piel by McPhy hydrogen and nitrogen generators to equip its sintering diamond tools line. This equipment supplies clean energy to the whole sintering process of powder sintering, which is the process of compacting and forming a solid mass of material by heat or pressure without melting it to the point of liquefaction.

By selecting the complete Piel equipment chain, the DIAX company chose to produce its hydrogen on site, in order to free itself from the expensive and polluting logistical constraints linked to the transport of pressurized hydrogen cylinders. Besides, Piel ensures industrials energy independence and increased control of their costs by an on-site, on-demand and tailor-made way of production.

With more than 3,000 installations worldwide, the new Piel product range, whose design was completely overhauled in 2019, perfectly meets the hydrogen production equipment needs of light industry, when hydrogen requirements are less than 10 Nm3/h and or for discontinuous production patterns. This type of equipment is usually chosen by goldsmith and jewelry companies or meteorological institutes to inflate sounding balloons for example.

Due to Covid-19 outbreak, Piel products commissioning and start-up phases were carried out entirely remotely. The operation, finalized at the end of April, was possible by digital supervision modules integrated into the McPhy equipment, which allow to collect “machine” data in real time, or to interact remotely with the equipment, for example to carry out preventive or curative maintenance operations. McPhy teams were thus able to quickly and remotely start up the chain of equipment and supervise the necessary maintenance despite the constraints imposed.

Beyond preventive or corrective maintenance on the production line, the digitalization of Piel equipment allows time savings in travel time and reactivity, and provides DIAX more flexibility, while drastically improving the efficiency and profitability of their hydrogen production and storage system.

This installation of a complete Piel chain in the Balkans marks a new success in the development of the product range dedicated to light industry alongside the multi-megawatt installations and is part of the concrete fight against climate change and for green growth.

Next financial communication
First semester 2020 results release, on July 28, 2020, after close of trading.

Following the containment measures taken by the French government due to the Covid-19 epidemic, the Annual Ordinary and Extraordinary General Meeting of Shareholders (the “Meeting”) of McPhy Energy SA (the “Company”) was held today, under the chairmanship of Mr. Pascal Mauberger, Chairman of the Board of Directors of the Company, behind closed doors, without the presence (physical or by telephone or audiovisual conference) of the shareholders, pursuant to Order No. 2020-321 of March 25, 2020.

The Company reminds that the notices of meeting and convocation were published and the notices sent out in accordance with applicable regulations and specifies that all the documents relating to this Meeting were made available and remain available on the Company’s website at the following address: www.mcphy.com/fr/investisseurs/information-financiere/information-financiereassemblee-generale/.

In this context, the Company’s shareholders were able to cast their votes by mail or give their proxy by using the voting form. With a quorum of 40.65% (i.e., 7,467,127 of the shares with voting rights), the Company’s shareholders overwhelmingly adopted all the resolutions recommended by the Board of Directors and thus:

• Approved the parent company and consolidated financial statements for the financial year 2019;
• Approved the appropriation of the 2019 income and the write-off of prior losses;
• Approved the assistance agreement between the Company and Pascal Mauberger, Director and Chairman of the Board of Directors;
• Approved all Say on Pay related items (including the information mentioned in I of article L. 225-37-3 of the French Commercial Code, the remuneration policy for the Directors, the Chairman of the Board of Directors and the Chief Executive Officer for 2020 as well as their remuneration components for the financial year 2019) and set the overall remuneration package allocated to the Directors for the financial year 2020;
• Authorized the Company to trade in its own shares in accordance with Article L. 225-209 of the French Commercial Code;
• Renewed all financial authorizations and delegations to be granted to the Board of Directors;
• Delegated authority to the Board of Directors to make the necessary amendments to the Articles of Association to bring them into compliance with legal and regulatory provisions; and
• Renewed the mandate of the statutory auditor, SARL AUDIT EUREX.

In addition, it is recalled that pursuant to a decision of the Board of Directors of the Company dated January 16, 2020, the Board of Directors, upon delegation by the General Meeting of Shareholders of the Company on January 16, 2020, proceeded with the allocation of share subscription warrants (“BSA”) to all shareholders of the Company, the Ecotechnologies Fund and EDF Pulse Croissance Holding having waived the exercise of the BSA allocated to them. The exercise period of the said BSAs having ended on May 18, 2020, the Board of Directors, which met on May 20, 2020 after the General Meeting, noted the capital increase with cancellation of the preferential subscription right for a total amount of €2.1 million by issuing 793,670 new ordinary shares resulting from the exercise of 7,936,700 BSAs.

The full results of the votes of the Meeting are available on the Company’s website at the following address: www.mcphy.com/fr/investisseurs/information-financiere/information-financiereassemblee-generale/.

Upcoming events
Publication of 2020 first-half results, on July 28, 2020 (after market)

Upcoming events

• Annual General Meeting, on May 20, 2020
• Publication of 2020 first-half results, on July 28, 2020 (after market)

In the current health context of the Covid-19 pandemic, McPhy has exceptionally decided to hold its Annual General Meeting of May 20, 2020 at 11:00 am CEST in closed session, without the presence (physical or by conference / video call) of its shareholders or other participants (such as the auditors or staff representative bodies), at the Company’s head offices, 1115 route de Saint-Thomas, 26190 La Motte-Fanjas, France.
This decision is a result of the measures adopted by the French Government, and notably order 2020-321 of March 25, 2020 pertaining to the holding of Shareholders’ Meetings.
The minutes of the Annual General Meeting will be made available to shareholders on the Company’s website: www.mcphy.com/fr/investisseurs/information-financiere/information-financiereassemblee-generale/.

The eligibility to participate in the Annual General Meeting is subject to having shares registered in the Company’s shareholders’ account in accordance with the terms indicated in the convening notice published in the BALO public notices on April 10, 2020, available on the Company’s website in the Shareholders’ Meetings section.

In these conditions, the Company’s shareholders will be able to exercise their voting rights exclusively via a postal voting form or by granting proxy to the Chairman of the AGM. Therefore, no admission cards will be issued.

The completed and signed postal voting form or proxy provided to the Chairman of the AGM should therefore be sent:

• either by email to emilie.maschio@mcphy.com by 11:59 pm CEST on Sunday May 17, 2020, which is recommended within the current context;
• or by regular post to BNP PARIBAS Securities Services, CTO Assemblées Générales, Les Grands Moulins de Pantin, 9 rue du Débarcadère, 93761 Pantin Cedex, France.

Registered shareholders will receive the voting form with their usual convocation.
For bearer shareholders, the postal voting or proxy form must be accompanied by the shareholding certificate issued by the approved intermediary who manages the securities account.

The postal voting form is also available in the Shareholders’ Meetings section of the Company’s website (www.mcphy.com/fr/investisseurs/information-financiere/information-financiereassemblee-generale/).

Given the exceptional circumstances associated with the Covid-19 pandemic, written questions may be sent to the Chairman of the Board of Directors by email at the following address: emilie.maschio@mcphy.com, which is the preferred method, or by recommended letter with acknowledgment of receipt, no later than the fourth business day prior to the date of the AGM, i.e. Thursday, May 14, 2020. They should be accompanied by the shareholding certificate.

All the documents relating to this Annual General Meeting are made available to shareholders on the Company’s website (www.mcphy.com/fr/investisseurs/information-financiere/information-financiereassemblee-generale/).

As previously announced (press releases of March, 10 and 30), faced with the Covid-19 pandemic, the Group has taken measures to protect the health of its employees, clients and partners and to uphold its commitments under the best possible conditions.

Thus, in order to take effective action within a rapidly changing context, the Group has implemented business continuity plans across all its sites that are updated according to changes in the situation in each country. The production sites in France and Germany have remained operational with limited on-site resources and strengthened safety conditions. In Italy, operations on the San Miniato site were suspended on March 23 and are gradually resuming.

Within this uncertain context, risks have been identified regarding delays in the execution of the Group’s contracts, notably due to the domino effect of any delays McPhy may see from its suppliers. At this stage, the extent of these delays cannot be accurately quantified, and will depend on the ability of the Group’s suppliers to meet their own commitments, on the length of the restrictions put in place by the various governments, on the extent of the global resumption in activity and on the Group’s ability to make up for the delays.

Moreover, the realization of certain contracts with potential new clients is likely to be delayed or suspended due to the cancelling or pushing back of key sector events. As a result, the Group’s short- and medium-term order book and revenue are likely to be affected by delays and impacts that are currently impossible to precisely estimate.

McPhy pledges to communicate, as soon as possible, any objective information that could clarify the impact of this pandemic on its industrial and commercial roadmap.

In order to minimize the impacts on its cash position and to ensure the continuity of its operations, McPhy has implemented cost reduction measures and has planned to initiate the necessary procedures enabling it to benefit from the aid announced by the French government and the European Union (partial activity measures, cancellation or deferral of tax payments, etc.) The Group has also received an agreement in principle from its banking partners to formalize additional State-backed credit lines of €4 million. Lastly, in order to strengthen its financial flexibility and secure access to additional resources, the Company renewed on April 10 its equity financing line with Kepler Cheuvreux for a period of two years, representing an indicative amount of €18.3 million (press release 14, April 2020).

Bolstered by a solid and secured financial situation to continue its activity, McPhy has confidence in the pertinence of its corporate project to enable it to cope with the challenges of this pandemic. Indeed, the Group is driven by robust fundamentals and the positive outlook for the hydrogen and energy transition market, which will be more relevant than ever in the post-crisis world.

McPhy is fully committed to achieving its “Driving Clean Energy Forward” corporate project, i.e. being able to accelerate the roll-out of zero-carbon ecosystems thanks to its zero-carbon hydrogen production and distribution equipment, and strongly believes in the possibility of seizing new opportunities once this global crisis is over.

McPhy’s Extraordinary Shareholders’ Meeting of January 16, 2020 approved the resolution concerning the issuance of 14,773,307 BSA stock warrants enabling all shareholders (with the exception of Fonds Ecotechnologies and EDF Pulse Croissance Holding, who have agreed not to exercise any warrants allocated to them) to participate in the operation and benefit from the same subscription conditions.

As a reminder, the stock warrants can be exercised from January 17, 2020 until May 18, 2020, i.e. two days before the Company’s Annual General Meeting called to approve its annual accounts for the year to December 31, 2019. These stock warrants give holders the right to subscribe to new shares at a price of €2.70 per share. One stock warrant is attributed for each share held, and 10 stock warrants allow the holder to subscribe to one new ordinary share. The exercise of the stock warrants could strengthen the Company’s shareholders’ equity by up to €2.8 million.

At March 31, 2020, 4,059,490 of these stock warrants had been exercised, resulting in the issuance of 405,949 new shares representing €1.1 million.

Upcoming events
• Annual General Meeting, on May 20, 2020
• Publication of 2020 first-half results, on July 28, 2020 (after market)

CEO Laurent Carme, acting upon delegation of the Board of Directors, has decided to renew a financing line. The operation will be carried out on the basis of (i) the existing delegations of power granted by the Shareholders’ Meeting of June 26, 2018 (17th resolution), limited to 1,000,000 shares, and (ii) any other decision or delegation of powers agreed by any Shareholders’ Meeting convened after the signing of the contract, limited to 2,500,000 shares.

In accordance with the terms of the agreement, Kepler Cheuvreux has pledged to subscribe to a maximum of 3,500,000 shares (representing, for information purposes, an issued amount of €18.3 million (1)), on its own initiative, over a maximum timeframe of 24 months, subject to contractual conditions being satisfied. The shares will be issued on the basis of a volume-weighted average share price over the two trading days prior to each issue, minus a maximum discount of 5%. These conditions allow Kepler Cheuvreux to guarantee the share subscription over time, as part of a firm commitment.

McPhy retains the option of suspending or terminating this agreement at any time.

Assuming full drawdown of this financing line, a shareholder with a 1.00% stake in McPhy prior to its implementation would see its stake reduced to 0.84%, on an undiluted basis (2).

The number of shares issued under this agreement and admitted for trading will be the subject of a Euronext notice and a press release on McPhy’s website.

This issue will not be subject to a prospectus requiring a visa from the AMF French stock market authority.

Footnotes
(1) Based on the closing share price of April 9, 2020 (i.e. €5.23)
(2) Based on 17,731,800 shares comprising the Company’s share capital at March 31, 2020

Upcoming events
• Annual General Meeting, on May 20, 2020
• Publication of 2020 first-half results, on July 28, 2020 (after market)