Neovacs Issues €0.22 Million in Bonds as Part of Its Restructuring Program

Details of the Bond Issue

Neovacs has carried out an issuance of simple bonds for an amount of €0.22 million, subscribed by the trust-management formed in June 2023. According to the press release, this issuance represents the first tranche of a global program that could reach up to €4 million. The trust received all 17,687 redeemable bond obligations (ORA) issued by the company, with a nominal value of €100 each. The mechanism provides for the trust to convert these ORAs into shares in a structured manner, then sell these shares on the market, and subsequently subscribe to several successive issuances of simple bonds using the proceeds from these sales. An amendment concluded in March 2025 modified the terms and the subscription schedule of the simple bonds to optimize the company's financing by allowing an accelerated issuance of these securities.

Impact of the Equitization Process

According to the group, the equitization process led by the trust has raised a total of €2.34 million since its inception, through the initial issuance of ORAs and subsequent issuances of simple bonds. This operation resulted in the creation of 1,169,288,409 new shares. The company notes that the stake of a shareholder holding 1% of the capital before this operation has now become insignificant, standing at less than 0.0001% of the capital. The simple bond issue announced today could result in the creation of an additional 31,666,666 new shares based on the last quoted price. In this scenario, the stake of a shareholder holding 1% of the capital before this new draw would be reduced to 0.54%.

Neovacs: A Dual Focus on R&D and Investment

Neovacs presents itself as a French biotechnology company that conducts dual activities in research and development and investment. According to the press release, its proprietary products are vaccine candidates developed from its kinoid technology platform targeting lupus and allergies. The approach relies on using the patient's immune system to regulate the overproduction of proteins. Alongside its research activities, the company indicates that it leverages its internal expertise to invest in innovative companies in biotechnology and medical technologies. The group reminds that this dilutive financing operation is not the first implemented and warns shareholders of the significant dilution risks and downward pressure on the share price related to the market sale of shares resulting from the conversion of instruments.