Advanced Biofuels


Global Bioenergies to Implement Line of Equity Financing With Societe Generale

Date Posted: October 5, 2015

Evry, France, Oct. 5, 2015 — Global Bioenergies (Alternext Paris: ALGBE/eligible for PEA-PME) announces the implementation of an optional line of equity financing (PACEO(R)) with Societe Generale.

At the current share price[1], the utilisation in full of this line of financing would procure for the Company an additional funding of 9 million euros.

Subject to certain conditions, most notably the Company's right to suspend execution of the program at any time, Societe Generale has committed to subscribing 250,000 new shares during the course of the next 36 months, or 8.9% of the current capital.

In case of full utilisation of the line[2], a shareholder holding 1% of the capital would see his equity investment go to 0.92% of the capital[3].

For each tranche, the issue price will include a discount of 5% relative to the average weighted price by volume of the preceding stock exchange session.

This discount makes it possible for Societe Generale, which does not intend to retain its stake in the Company, to guarantee the subscription of the shares despite possible volatility of the financial markets.

At the same time, the equity line agreement entered into with Yorkville Advisors on 16 May 2014 is terminated and the 97,736 share issuance warrants related to this agreement and not exercised to date are invalid.

Francois-Henri Sahakian, Global Bioenergies' CFO, states: "Global Bioenergies has good financial visibility: the gross cash of the Group was 13.8 million euros at 30 June 2015 (audited), and14.1 million euros at 30 September 2015 (not audited).

We can also count on 5 million euros in subsidies remaining to be received from the BMBF (German Federal Ministry of Research) and1.7 million euros from the French State (Investment for the Future).

The line of financing obtained from Societe Generale reinforces the financial situation of Global Bioenergies for the medium term."

Marc Delcourt, CEO of Global Bioenergies, concludes: "Global Bioenergies is approaching the most value-generating phase of its history: the startup of the demo plant.

"The construction of the demo plant is underway, and should be ended in July 2016.

"The line of financing signed with Societe Generale will bring us the means to start up and operate the demo plant, prerequisite to exploiting the process on a large scale."

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