Signing of a 22.5 Million Euros Loan Agreement with the European Investment Bank (EIB)
Mauna Kea Technologies and the European Investment Bank (EIB), which is the Bank of the European Union (EU), announce the signing of a 22.5 million euros loan agreement, supported by the European Strategic Investment Fund (EFSI) or "Juncker Plan".
This loan will enable Mauna Kea Technologies to intensify its market development efforts, to further invest in its research, development and innovation activities and, if needed, to increase its production capacity based on demand trends over the next several years. The first €11.5 million tranche is to be released in the coming weeks, while the subsequent €6 and €5 million tranches will be released at a later date subject to the achievement of certain milestones including the Company's commercial progress and future equity capital financing activities. The loan agreement is secured and is supplemented by an agreement to issue share warrants to the EIB for the first two tranches of the financing, covering 1,450,000 and 300,000 shares respectively (5.75% and 1.2% of the current share capital).
The aim of this type of financing, granted by the EIB with the European guarantee within the framework of the Juncker plan, is to support research and innovation projects developed by companies with substantial growth potential. Mauna Kea Technologies meets these criteria as its technologies have the potential to impact the lives of hundreds of thousands of patients in Europe.
The agreement was signed by Ambroise Fayolle, EIB Vice-President, and Sacha Loiseau, Chairman and Founder of Mauna Kea Technologies, during a visit to the company's headquarters in Paris.
“This project is fully in line with the mandate given to the EIB by its shareholders - the EU Member States - to support innovation throughout Europe”, stresses EIB Vice-President Ambroise Fayolle. “The Medtech company Mauna Kea Technologies, with its unique confocal laser endomicroscopy platform, has the potential to become a world leader in its field and represents the very example of companies essential for the future of the European economy, combining a high level of research in innovation and the employment of highly skilled workers.”
Pierre Moscovici, European Commissioner for Economic and Financial Affairs, Taxation and Customs, said: “I am delighted with this new agreement in the framework of the Juncker Plan. Mauna Kea has the potential to become a world leader in its market and the support of the European Union will enable it to accelerate its growth. This agreement is further proof for this Commission’s commitment to innovative companies: thanks to the Juncker Plan, nearly 240,000 French companies have already received financing on favourable terms. With InvestEU, we will strengthen this dynamic, for a competitive, innovative and job-creating France and Europe.”
Robert L. Gershon, Chief Executive Officer of Mauna Kea Technologies, comments: “We are very pleased to announce this financing agreement with the EIB and believe it represents validation of our focus on strong innovation and development of unique medical device technologies to enhance the standard of care and improve outcomes for patients around the World. I would like to thank all the stakeholders who have contributed to the implementation of this new loan agreement with the EIB.”
Christophe Lamboeuf, Chief Financial Officer and Deputy Managing Director of Mauna Kea Technologies, adds: “We are pleased to have the European Investment Bank as our new financial partner. This loan will considerably improve our financial visibility and will support our ability to execute our strategic growth objectives in the years to come.”
About the European Investment Bank (EIB) and the Juncker Plan
Created by the Treaty of Rome in 1958, the EIB is the EU bank, which, together with its dedicated SME support subsidiary the European Investment Fund (EIF), forms the EIB Group. The EIB Group provides its financing and know-how for sound and sustainable investment projects meeting EU objectives.
Supported by its expertise and the financial attractiveness lent by its AAA rating, the EIB Group is a key player in getting investment back on track in Europe. It supports the real economy while also attracting other investors by financing concrete projects with an impact on people's lives. EUR 8.6bn of new financing was allocated to support high quality growth and job driving projects in France in 2017.
The Investment Plan for Europe
The so-called Juncker Plan, is one of Jean-Claude Juncker's top priorities. It focuses on boosting investments in Europe to create jobs and growth by making smarter use of new and existing financial resources, removing obstacles to investment and providing greater visibility and technical assistance to investment projects. The European Fund for Strategic Investments (EFSI), which is the central pillar of the Investment Plan for Europe, enables the EIB Group to invest in more, often riskier, projects with high added value. EFSI is already showing concrete results. The projects and agreements approved for financing under EFSI so far have mobilised EUR 408.4bn in investments, of which EUR 69bn is in France. The plan is supporting around 952 000 SMEs across all 28 Member States.