IMPLANET: Partnership With Sanyou Medical: Conditions Precedent Fulfilled

Rhea-AI Summary

IMPLANET announces the successful fulfillment of conditions for its partnership with Sanyou Medical, which will allow for the implementation of a €5 million investment. This partnership aims to leverage technological and commercial synergies in spine surgery, with a distribution agreement pending approval from Chinese health authorities. A planned capital increase of approximately €5.5 million will be open to all shareholders and is expected to occur before October 31, 2022. The final agreements will be concluded by December 31, 2022.

Positive

• Partnership with Sanyou Medical confirmed, bringing in a €5 million investment.
• Potential access to the Chinese spine surgery market, the largest by volume.
• Implementation of a distribution agreement for JAZZ® range upon regulatory approval.
• Capital increase operation of approximately €5.5 million planned, opening opportunities for all shareholders.

Negative

• The rights of stock options and warrants are temporarily suspended until new shares are settled, which may affect current investors' positions.
• Dependence on regulatory approval from Chinese authorities for distribution agreement could delay market entry.

• Fulfillment of all the conditions precedent, enabling the commercial, technological, and financial partnership with Sanyou Medical to be implemented

BORDEAUX, France & BOSTON--(BUSINESS WIRE)-- Regulatory News:

IMPLANET (Euronext Growth: ALIMP, FR0013470168, eligible for PEA-PME equity savings plans) (Paris:ALIMP), a medical technology company specializing in vertebral implants, announces that all of the conditions precedent pertaining to the planned partnership with Sanyou Medical reported in the press release of June 29, 2022 have now been met. Implanet’s Board of Directors will meet shortly to determine the precise terms and the definitive schedule of the capital increase operation.

David FAN, Sanyou Medical’s co-founder & deputy CEO, stated: “Following the satisfaction of the last suspensive conditions, we confirm our commitment to invest into Implanet the amount of €5 million in accordance with the provisions of the Investment Agreement signed in June 2022. We are confident that in a near future, both teams will work together to join technical and commercial forces in order to build a new pivotal actor in spine surgery.”

Ludovic LASTENNET, Implanet’s Chief Executive Officer, added: “The commercial, technological and financial partnership with Sanyou Medical will now unfold its full potential. With the fulfillment of these conditions precedent, the distribution agreement and technological synergies negotiated will be implemented, as well as our planned capital increase. The latter will be open to all our shareholders and should take place before October 31, 2022.”

Reminder of the partnership agreement

As a reminder, this partnership relates to:

• a distribution agreement: once approved by the Chinese health authorities, Sanyou Medical will distribute Implanet’s entire JAZZ® range in China (the world’s largest spine surgery market by volume);
• a technological agreement: harnessing of each company’s know-how and R&D to develop a brand-new comprehensive hybrid fixation system range incorporating the very latest developments and innovations in the field of spine surgery;
• a financial agreement: operation by Implanet to raise capital of approximately €5.5 million in two stages, guaranteed up to €5 million by Sanyou Medical.

As announced in the press release of June 29, 2022, the final distribution and technology partnership agreements will be concluded by December 31, 2022.

A future press release will detail the precise terms and definitive timetable of the capital increase, to be completed by October 31, 2022.

The Sanyou Medical Group, via its subsidiary Sanyou (HK) International Medical Holding Co. Limited, reserves the right to acquire Implanet shares on the market before the subscription period.

Suspension of the right to shares allocated by the Company

Within the framework of this operation, the Board of Directors also temporarily suspended the right of holders of stock options, business creator share warrants and equity warrants and bearers of bonds redeemable in new shares allocated or issued by the Company to be allocated new shares.

This right is suspended until and including the date of settlement-delivery of the new shares issued within the framework of the issuance of securities giving access to the Company’s share capital, a suspension period limited to a maximum of three months from September 29, 2022 (00:00 am Paris time). This suspension will be automatically lifted on the day after the settlement-delivery of these new shares or following the period of three months indicated above, unless a notice to the contrary is published before the expiry date.

The rights of holders of stock options, business creator share warrants and equity warrants and bearers of bonds redeemable in new shares allocated or issued by the Company who have not exercised their right to the allocation of shares in the Company by September 28, 2022 (23:59 pm Paris time) will be preserved in accordance with legal and regulatory provisions.

In this respect, a notice of suspension will be published in the BALO (bulletin of mandatory legal notices) n°113 of September 21, 2022.

Upcoming financial press release: 2022 first-half results, on September 20, 2022

Risk factors

Implanet would like to draw your attention to the other risk factors associated with the Company and its activity set forth in Chapter 4, “Risk Factors”, of its 2017 Registration Document approved by the AMF on April 16, 2018 under number D.18-0337, as well as in the annual financial report of December 31, 2021 2021 available on the Company’s website, in the investors – accounts and financial reports section.

About Sanyou Medical

Founded in 2005, Shanghai Sanyou Medical Co, Ltd. is a company dedicated to the R&D, manufacturing and sales of innovative and independent orthopedic products. The main products of Shanghai Sanyou are spinal and trauma implants. Shanghai Sanyou is one of the few companies with the ability to make original innovations based on clinical requirements in the field of spinal implants in China.

The Company has established a complete product development system with world-class R&D equipment and project management systems to ensure that its products are advanced, effective and reliable. By the end of 2021, the company had 27 registration certificates for Class III medical devices and 395 patents registered including 61 in inventions, 214 in utility models, 116 in designs and 4 in software copyrights.

About IMPLANET

Founded in 2007, IMPLANET is a medical technology company that manufactures high-quality implants for orthopedic surgery. Its activity revolves around a comprehensive innovative solution for improving the treatment of spinal pathologies (JAZZ®) complemented by the product range offered by Orthopaedic & Spine Development (OSD), acquired in May 2021 (thoraco-lumbar screws, cages and cervical plates). Implanet’s tried-and-tested orthopedic platform is based on the traceability of its products. Protected by four families of international patents, JAZZ® has obtained 510(k) regulatory clearance from the Food and Drug Administration (FDA) in the United States, the CE mark in Europe and ANVISA approval in Brazil. IMPLANET employs 39 staff and recorded a consolidated revenue of €6.1 million in 2021. Based near Bordeaux in France, IMPLANET opened a US subsidiary in Boston in 2013. IMPLANET is listed on the Euronext Growth market in Paris. For further information, please visit www.Implanet.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220919005487/en/

IMPLANET

Ludovic Lastennet, CEO

David Dieumegard, CFO

Tél. : +33 (0)5 57 99 55 55

investors@Implanet.com

NewCap

Investor Relations

Mathilde Bohin

Nicolas Fossiez

Tél.: +33 (0)1 44 71 94 94

Implanet@newcap.eu

NewCap

Media Relations

Arthur Rouillé

Tél.: +33 (0)1 44 71 94 94

Implanet@newcap.eu

Source: IMPLANET

FAQ

What partnership did IMPLANET announce with Sanyou Medical on September 19, 2022?

IMPLANET announced the fulfillment of conditions for a €5 million investment partnership with Sanyou Medical to develop and distribute medical technology.

What is the expected timeline for IMPLANET's capital increase related to the partnership with Sanyou Medical?

The planned capital increase of approximately €5.5 million is expected to take place before October 31, 2022.

What potential market access does the partnership with Sanyou Medical provide to IMPLANET?

The partnership allows IMPLANET to potentially access the Chinese spine surgery market, the largest by volume globally.

When are the final distribution and technology partnership agreements between IMPLANET and Sanyou Medical expected to be concluded?

The final agreements are expected to be concluded by December 31, 2022.

What impact does the suspension of rights on shares have for IMPLANET investors?

The suspension of rights for stock options and warrants may limit current investors' ability to acquire new shares until the settlement of new shares.