Evolva informs about renegotiation of financing arrangement, initiates review of strategic alternatives and revokes guidance 14.06.2023, 07:00 Uhr von EQS News Jetzt kommentieren: 0

PRESS RELEASE | AD HOC ANNOUNCEMENT PURSUANT TO ART. 53 LR
 

Evolva informs about renegotiation of financing arrangement, initiates review of strategic alternatives and revokes guidance

Reinach, 14 June 2023 — Evolva (SIX: EVE), a pioneer in the field of natural molecules and industrial biotech, is in discussions with its financing partner Nice & Green after disagreements regarding its outstanding financing lines. Negotiations to clarify the different interpretations and to find a solution that will secure the financing of Evolva at least until the end of this year are ongoing. In light of these events, the Board of Directors of Evolva is initiating a comprehensive review of strategic alternatives to accelerate discussions with strategic partners or to facilitate other strategic transactions. As this will require the full attention of the leadership team, the guidance for 2023 is revoked.

Based on the existing financing agreement, Evolva currently has open financing lines with Nice & Green of CHF 12 million. The financing partner has recently informed the company about a different interpretation of the terms applicable to these lines. Evolva has received a Letter of Intent (LOI) from Nice & Green to solve the situation and the parties are moving towards reaching an agreement that is in the best interest of Evolva and all of its stakeholders. The objective is to secure the financing of Evolva at least until the end of 2023. There is no assurance that the parties will reach an agreement. Evolva will inform about the result of the negotiation at the appropriate time. In view of these events, the Board of Directors has decided to initiate a comprehensive review of strategic alternatives, to accelerate discussions with strategic partners or to facilitate other strategic transactions, including a potential sale of the company. Houlihan Lokey has been retained by Evolva as financial advisor to support the process.

The Board of Directors of Evolva acknowledges and highlights the significant positive developments under the new leadership team led by Christian Wichert. Since he became CEO in early February 2022, the company achieved notable milestones and successes along the entire value chain. Most notably, the company increased product-related sales by +62% in 2022, while the associated gross contribution margin grew from negative -59% in 2021 to positive +16% in 2022. More recently, Evolva signed an important multi-year contract with a leading CMO partner which will significantly improve Evolva’s competitive position across multiple products from 2024 onwards and help to boost Vanillin sales. Several new products have been launched recently, are in market launch preparation, or are part of Evolva’s attractive innovation pipeline.

Based on these positive business developments, Evolva is confident regarding its mid-term prospects. The current financing situation, however, poses a significant challenge to the company and requires the full attention of the Board of Directors and management. Therefore, the immediate focus will shift to the review of strategic alternatives. Consequently, the guidance for 2023 is revoked. Evolva will provide an outlook as well as a strategic update together with the half-year results on 24 August 2023.
 

Important dates
24 August 2023  Half-year 2023 results

Contact
Doris Rudischhauser
Head of Investor Relations and Corporate Communications
+41 79 410 81 88
dorisr@evolva.com

About Evolva
Evolva is a Swiss biotech company focused on the research, development and commercialization of ingredients based on nature. We have leading businesses in Flavors and Fragrances, Health Ingredients and Health Protection. Evolva’s employees, half of which are women, are dedicated to make the best products that can contribute to health, wellness and sustainability. Find out more at evolva.com and connect with us on LinkedIn.

Disclaimer
This announcement is not an offer of securities into the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered, pledged, sold, delivered or otherwise transferred, directly or indirectly, in the United States, except pursuant to an exemption from, or transaction not subject to, the registration requirements of the Securities Act. No public offering of securities is being made in the United States. Further, the securities referred to herein have not been and will not be registered under the applicable securities laws of Canada, Australia or Japan or under the applicable securities laws of any other jurisdiction where to do so might constitute a violation of such laws.             
This press release contains specific forward-looking statements, e.g. statements including terms like believe, assume, expect or similar expressions. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may result in a substantial divergence between the actual results, financial situation, development or performance of the company and those explicitly or implicitly presumed in these statements. Against the background of these uncertainties readers should not place undue reliance on forward-looking statements. The company assumes no responsibility to update forward-looking statements or to adapt them to future events or developments.