Acceleration of the Genomtec_#174; ID platform commercialization andsigning up loan agreements in connection to financing of thefast-tracked project activities.
TheLoans may be repaid as follows:
1. in the form of a cash repayment due by 31 December 2022, with therepayment term reserved for the benefit of the Borrower, i.e. theBorrower has the right to repay earlier part of it or all of the loans2.in the form of subscription for Borrower's new issue of shares by theLenders (the _quot;Share Subscription Right_quot;). Repayment of the Loan based onthe Right to Take Up Shares is a right of the Borrower, i.e. the Companyhas the right to repay the Loan based on the Right to Take Up Sharesand, if the Borrower declares to exercise this right, the Borrower andthe Lenders agree to carry out the repayment based on the Right to TakeUp Shares. Under the Share Subscription Right, the Lenders shall beentitled for subscription of such number of shares in the Company asshall be quotient of: (a) the amount of the Loan paid and not repaid,together with interest due, and (b) the issue price calculated as thevolume-weighted average price of Genomtec shares on the NewConnect stockexchange market for the last 3 months since the date of the LoanAgreement, reduced by 20%.The analysis of the possible plannedacceleration of the Genomtec_#174; ID platform commercialisation, which theCompany announced in ESPI Current Report No. 27/2021 on 3 November 2021,showed that due to the postponement in the implementation of the IVDRDirective, the ideal time for market entrance of the Genomtec_#174; IDplatform would be the second half of the next year, which presents aacceleration of the communicated plan since then. It becomes possible byadvantageous product certification under the current directive (IVDD andnot IVDR as previously planned) thus allowing for quicker sales revenuegeneration. The IVDR certification will be executed at a later stageafter the Genomtec_#174; ID is launched on the market. The aforementionedactivities are aimed at fast-tracking Company's growth and its scale ofoperations, taking advantage of the market situation, legal environmentand the Company's know-how.Provision of funds supportingaccelerated commercialisation of the Company's flagship solution, theGenomtec ID platform, is an important event for the Company's operationsand, in the opinion of the Management Board, in the opinion of theManagement Board, this information meets the criteria of confidentialinformation within the meaning of Art. 7 sec. 1 MAR.