EQS-Ad hoc: Airopack AG

Ad-hoc release / Press Release

Airopack Technology Group secures funding to double its manufacturing capacity

Upscaling to 200 million environmental friendly dispensers annually

Baar, 21 June 2017 - Airopack Technology Group AG ("ATG"), manufacturer of environmental friendly dispensers, is pleased to announce that it has secured funding to begin doubling its manufacturing capacity to 200 million pieces of Airopack annually. The upscaling process will start by the end of 2017. With this investment ATG is confirming its ability to bring sustainable packaging innovations to the market at competitive costs, becoming the new standard in planet friendly packaging solutions.

In December 2016 ATG opened its new state-of-the-art plant in Waalwijk, the Netherlands, with an initial annual capacity of 80 million pieces of Airopack. Airopack is a safe, all-plastic pressurized dispenser that is environmentally and planet friendly. It was developed by ATG, which holds its patent and is worldwide the sole producer of this unique dispenser. All assets in the Waalwijk plant are installed and fully operational according to plan, achieving an Acceptance Quality Limit (AQL) level of 0.065 for critical defects, the highest quality standard in the packaging industry.

Doubling manufacturing capacity
Due to continued strong customer demand, ATG is now commencing expansion of its manufacturing capacity at the Waalwijk plant. An increase of installed capacity to 100 million pieces annually is targeted by end 2017, with a further modular expansion of installed capacity to 200 million pieces annually over the course of 2018. The modular layout of the current plant provides for straightforward upscaling of capacity with minimal business disruption.

Funding secured
ATG will fund its business plan with a combination of (i) a capital increase with expected net proceeds of approximately EUR 11.7 million, (ii) an additional EUR 10 million debt facility provided by funds managed by affiliates of Apollo Global Management, LLC (the "Apollo Funds"), and (iii) asset-based financing, including lease and factoring provided by Rabobank and KBC respectively.

Capital increase
A private placement of 1,228,955 registered shares in ATG with a nominal value of CHF 5.00 per share has been fully subscribed by investors at an issue price of CHF 10.65 each. Apollo Funds will participate in the private placement pro rata for their current shareholding. New shares will be issued from the authorized capital and will be entitled to dividends from the financial year 2017 onwards. Completion of the private placement and listing of the new shares in accordance with the Swiss Reporting Standard of SIX Swiss Exchange is expected in the first half of July 2017.

For more information:

For media:

Hill + Knowlton Strategies
Frans van der Grint

T: 31 (0) 20 404 4707
E-Mail: frans.vandergrint@hkstrategies.com

For investors:

Airopack Technology Group AG
Quint Kelders, CEO / Liebwin van Lil, CFO

Zugerstrasse 76b
CH-6340 Baar
TF: +31 416 300 800
E-Mail: quint.kelders@airopackgroup.com
E-Mail: liebwin.vanlil@airopackgroup.com
www.airopackgroup.com