DGAP-News: aap adopts package of measures to strengthen its financial base - Capital increase as attractive offer for shareholders

The information contained in this announcement is not intended for publication or distribution in or within the United States of America, Australia, Canada or Japan.

 

For the current and the coming years the Management Board targets to realize a significant sales increase and to further develop the pioneering and innovative silver coating technology of the company. With a view to the silver coating technology, aap strives for the start of a human clinical study in financial year 2019 as prerequisite for the planned market approval.

 

Based on these targets, different measures to strengthen the financial base are necessary. These contain besides a capital increase with subscription rights two asset-based financings. From the capital increase aap will obtain at least EUR 2.3 million on the basis of commitments it has already received from its shareholders. Accompanying to the implementation of the capital increase, the company intends to enter into sale-and-rent-back as well as factoring agreements, which shall lead to an inflow of further financial funds amounting to approx. EUR 1.7 million in financial year 2019. Thereby the company would have a total of at least around EUR 4.0 million available from the financing measures in the coming months. With these inflows and the realization of the planned sales growth the financing requirements are covered for at least the next twelve months.
 

Based on the underlying planning, the Management Board also expects to generate cash inflows to a similar extent from technology-related transactions (e.g. outlicensing of technologies, joint venture agreements with a carve-out of technologies or involving other companies in joint development of products), from public funds and due to the conclusion of legal disputes, which shall sustainably secure the company's financing at least by end of 2020.
 

In the course of the capital increase with subscription rights aap's share capital shall be increased by up to EUR 4,784,485.00 by issuing up to 4,784,485 new shares from the current amount of EUR 28,706,910.00 to up to EUR 33,491,395.00 by partially using the authorized capital. The new shares shall be offered to the shareholders of the company for subscription at a subscription price of EUR 1.04 per new share in an indirect subscription offer. The shareholders can receive 1 new share per 6 held aap shares within a subscription period, which is expected to start on 25 April 2019 (00.00 hours CET) and to end on 9 May 2019 (24.00 hours CET)¹⁾. At this time, aap has commitments from its shareholders to exercise subscription and oversubscription rights in a volume of EUR 2.3 million in total. This corresponds to approx. 46% of the capital increase.
 

With a sales growth of 25% to EUR 3.5 million in the first quarter aap had a good start in 2019 and thereby showed a solid kick-off for the planned dynamic sales growth in the entire year. All regions registered double-digit growth rates compared to the previous year. With a view to the targeted market approval of its silver coating technology, aap submitted at the end of 2018 the application to conduct a human clinical study to the Federal Institute for Drugs and Medical Devices ("BfArM") and is now involved in an intensive exchange with the Federal Institute. With this technology aap is addressing one of the biggest not adequately solved challenges in trauma: the reduction of surgical site infections (SSI). The silver coating technology developed by aap has, as a platform technology, a wide range of potential applications and can be used not only in orthopaedics but also in further areas such as cardiology, dentistry or for medical instruments and thereby offers an enormous market potential. The developments in silver coating technology, but also the further completion of the LOQTEQ(R) portfolio, are pursued with keen interest by global orthopaedic companies which reaffirmed their interest in the innovative silver coating technology and the products of aap's LOQTEQ(R) family during talks currently conducted.
 

Based on the aforementioned recent developments, the current price of the aap stock and the fixed confirmed support from our main shareholders, we are convinced that with the capital increase resolved on today we make an attractive offer to all shareholders to participate in the chances of a dynamically growing pure player in trauma.
 

¹⁾For further details regarding the planned capital increase with subscription rights please refer to the subscription offer, which will be published before the start of the subscription period on the corporate website of the company (www.aap.de) in the section "Investors / Capital Increase" as well as in the Federal Gazette under www.bundesanzeiger.de.

This announcement constitutes neither an offer nor a solicitation to purchase or subscribe for securities in the United States, Australia, Canada, Japan or any other jurisdiction in which an offer is unlawful.

This announcement is not an offer of securities for sale in the United States. Securities may be offered or sold in the United States only upon prior registration or upon exemption from the obligation of prior registration pursuant to the Securities Act. If a public offering of securities were to take place in the United States, it would be effected by means of a securities prospectus which investors could obtain from the Company. This prospectus would contain detailed information about the Company and its management, as well as financial information. There will be no public offering of the securities referred to in this announcement in the United States.

Subject to certain exceptions, the securities referred to in this announcement may not be offered or sold in Australia, Canada or Japan, or to or for the account of persons resident in Australia, Canada or Japan.

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aap Implantate AG (ISIN DE0005066609) - Prime Standard/Regulated Market - All German stock markets -

About aap Implantate AG
aap Implantate AG is a globally operating medical device company headquartered in Berlin, Germany. The company develops, manufactures and markets trauma products for orthopaedics. The IP protected portfolio includes besides the innovative anatomical plating system LOQTEQ(R) and trauma complementary biomaterials a wide range of cannulated screws as well as standard plates and screws. Furthermore, aap Implantate AG has an innovation pipeline with promising development projects as the antibacterial silver coating technology and magnesium based implants. These technologies address critical problems in surgery that haven't yet been resolved adequately. In German-speaking Europe aap Implantate AG directly sells its products to hospitals, buying syndicates and hospital groups while it uses a broad network of distributors in more than 25 countries at the international level. aap Implantate AG's stock is listed in the Prime Standard segment of Frankfurt Stock Exchange (XETRA: AAQ.DE). For more information, please visit www.aap.de, or download the Company's investor relations app from the Apple's App Store or Google Play.

Forward-looking statement
This release may contain forward-looking statements based on current experience, estimates and projections of the management board and currently available information. They are not guarantees of future performance. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. Many factors could cause the actual results, performance or achievements of aap to be materially different from those that may be expressed or implied by such statements. These factors include those discussed in aap's public reports. Forward-looking statements therefore speak only as of the date they are made. aap does not assume any obligation to update the forward-looking statements contained in this release or to conform them to future events or developments.
For inquiries please contact: aap Implantate AG; Fabian Franke; Investor Relations; Lorenzweg 5; D-12099 Berlin Tel.: +49/30/750 19 - 134; Fax.: +49/30/750 19 - 290; f.franke@aap.de