Mynaric Extends Maturity of Three Existing Bridge Loans Until February 7, 2025 and Expects Additional Bridge Loan, Restructuring Loan and Application for StaRUG Proceedings
Mynaric AG (NASDAQ:MYNA) has announced the extension of three existing bridge loans totaling USD 21.5 million from January 31, 2025 to February 7, 2025. The company, which currently holds EUR 8.4 million in cash and cash equivalents, is in advanced discussions for a fourth bridge loan and a separate restructuring loan.
The company expects to apply for StaRUG proceedings (German Corporate Stabilization and Restructuring Act) with the Munich local court in the coming days. The restructuring plan may involve reducing the company's share capital to zero followed by a capital increase excluding statutory subscription rights, potentially resulting in shareholders losing their entire investment.
The bridge loans can be terminated early if an independent German restructuring expert determines the company is unlikely to be restructured successfully. The company maintains its December 2024 provision for contingent liabilities from guarantee obligations. Currently, no other financing opportunities are available or in sight.
Mynaric AG (NASDAQ:MYNA) ha annunciato l'estensione di tre prestiti ponte esistenti per un totale di 21,5 milioni di USD, dal 31 gennaio 2025 al 7 febbraio 2025. L'azienda, che attualmente detiene 8,4 milioni di EUR in contante e equivalenti, è in trattative avanzate per un quarto prestito ponte e un separate prestito per la ristrutturazione.
L'azienda prevede di richiedere procedimenti StaRUG (Legge tedesca sulla stabilizzazione e ristrutturazione aziendale) presso il tribunale locale di Monaco nei prossimi giorni. Il piano di ristrutturazione potrebbe coinvolgere la riduzione del capitale sociale dell'azienda a zero, seguita da un aumento di capitale escludendo i diritti di sottoscrizione statutari, il che potrebbe comportare la perdita totale del capitale investito da parte degli azionisti.
I prestiti ponte possono essere risolti anticipatamente se un esperto indipendente tedesco in ristrutturazione determina che l'azienda è improbabile che venga ristrutturata con successo. L'azienda mantiene la sua accantonamento per responsabilità potenziali derivanti da obbligazioni di garanzia fino a dicembre 2024. Attualmente, non ci sono ulteriori opportunità di finanziamento disponibili o in vista.
Mynaric AG (NASDAQ:MYNA) ha anunciado la extensión de tres préstamos puente existentes por un total de 21,5 millones de USD, desde el 31 de enero de 2025 hasta el 7 de febrero de 2025. La empresa, que actualmente tiene 8,4 millones de EUR en efectivo y equivalentes, está en conversaciones avanzadas para un cuarto préstamo puente y un préstamo de reestructuración separado.
La empresa espera solicitar procedimientos StaRUG (Ley alemana de estabilización y reestructuración corporativa) al tribunal local de Múnich en los próximos días. El plan de reestructuración podría implicar la reducción del capital social de la empresa a cero, seguido de un aumento de capital excluyendo los derechos de suscripción estatutarios, lo que podría resultar en la pérdida total de la inversión de los accionistas.
Los préstamos puente pueden ser cancelados anticipadamente si un experto independiente en reestructuración alemán determina que es poco probable que la empresa sea reestructurada con éxito. La empresa mantiene su previsión de diciembre de 2024 para pasivos contingentes provenientes de obligaciones de garantía. Actualmente, no hay otras oportunidades de financiamiento disponibles o a la vista.
Mynaric AG (NASDAQ:MYNA)는 2025년 1월 31일에서 2025년 2월 7일까지 총 2,150만 달러의 기존 브리지 대출 세 건을 연장한다고 발표했습니다. 현재 840만 유로의 현금 및 현금성 자산을 보유하고 있는 이 회사는 네 번째 브리지 대출과 별도의 구조조정 대출에 대한 진전된 논의를 진행하고 있습니다.
회사는 곧 뮌헨 지방 법원에 StaRUG 절차 (독일 기업 안정화 및 재구성법)를 신청할 계획입니다. 구조조정 계획에는 회사의 자본금을 0으로 줄이고 법정 구독권을 배제한 자본 증가가 포함될 수 있으며, 이로 인해 주주들이 전체 투자금을 잃을 가능성이 있습니다.
브리지 대출은 독립적인 독일 재구성 전문가가 회사가 성공적으로 재구성될 가능성이 없다고 판단할 경우 조기 종료될 수 있습니다. 회사는 2024년 12월까지 보증 의무에서 발생할 수 있는 잠재적 부채를 위해 설정한 적립금을 유지하고 있습니다. 현재로서는 다른 재정 기회가 없거나 보이지 않습니다.
Mynaric AG (NASDAQ:MYNA) a annoncé l'extension de trois prêts relais existants totalisant 21,5 millions USD, du 31 janvier 2025 au 7 février 2025. L'entreprise, qui détient actuellement 8,4 millions EUR en espèces et équivalents, est en discussions avancées pour un quatrième prêt relais et un prêt de restructuration séparé.
L'entreprise prévoit de demander des procédures StaRUG (Loi allemande sur la stabilisation et la restructuration des entreprises) auprès du tribunal local de Munich dans les prochains jours. Le plan de restructuration pourrait impliquer une réduction du capital social de l'entreprise à zéro, suivie d'une augmentation de capital excluant les droits de souscription statutaires, ce qui pourrait entraîner une perte totale de l'investissement des actionnaires.
Les prêts relais peuvent être résiliés par anticipation si un expert indépendant allemand en restructuration détermine que la société est peu susceptible d'être restructurée avec succès. L'entreprise maintient sa provision pour les passifs éventuels issus des obligations de garantie jusqu'en décembre 2024. Actuellement, aucune autre opportunité de financement n'est disponible ou en vue.
Mynaric AG (NASDAQ:MYNA) hat die Verlängerung von drei bestehenden Brückenkrediten in Höhe von insgesamt 21,5 Millionen USD vom 31. Januar 2025 auf den 7. Februar 2025 angekündigt. Das Unternehmen, das derzeit über 8,4 Millionen EUR an Barmitteln und Barmitteläquivalenten verfügt, führt fortgeschrittene Gespräche über einen vierten Brückenkredit sowie einen separaten Umstrukturierungskredit.
Das Unternehmen plant, in den kommenden Tagen einen Antrag auf StaRUG-Verfahren (Deutsches Gesetz zur Unternehmensstabilisierung und -restrukturierung) beim Amtsgericht München zu stellen. Der Umstrukturierungsplan könnte eine Reduzierung des Eigenkapitals des Unternehmens auf null sowie eine Kapitalerhöhung ohne gesetzliche Bezugsrechte beinhalten, was dazu führen könnte, dass Aktionäre ihr gesamtes Investment verlieren.
Die Brückenkredite können vorzeitig gekündigt werden, wenn ein unabhängiger deutscher Umstrukturierungsexperte feststellt, dass das Unternehmen voraussichtlich nicht erfolgreich umstrukturiert werden kann. Das Unternehmen hält seine Rückstellung für Eventualverbindlichkeiten aus Garantieverpflichtungen bis Dezember 2024 aufrecht. Derzeit gibt es keine weiteren Finanzierungsmöglichkeiten oder in Sicht.
- None.
- Company has only EUR 8.4 million in cash reserves
- Potential complete loss of shareholder value through share capital reduction to zero
- Bridge loans of USD 21.5 million could be terminated early based on restructuring expert assessment
- No alternative financing options available
- Company requires additional bridge loan for operational needs
Insights
A critical analysis of Mynaric's financial situation reveals an extremely concerning scenario. The company has accumulated
The planned StaRUG proceedings represent a last-resort measure under German law, similar to Chapter 11 bankruptcy in the U.S., but with a focus on financial restructuring. The proposed zero-capital reduction followed by a capital increase without subscription rights is particularly alarming for current shareholders, as it effectively means a complete wipeout of existing equity. This extreme measure typically occurs when a company's liabilities significantly exceed its assets, leaving no residual value for current shareholders.
Several critical red flags emerge from this announcement:
- The short-term extension of bridge loans to February 7, 2025, suggests extreme urgency in finalizing restructuring plans
- The company's need for contingent liability provisions against all outstanding loans indicates significant risk of default
- The statement that "other financing opportunities are neither available nor in sight" reveals a complete lack of alternative funding sources
- The requirement for an independent restructuring expert's ongoing validation of restructuring viability adds another layer of uncertainty
This situation presents a severe risk to all stakeholders, particularly existing shareholders who face potential total loss of investment. The success of the restructuring will largely depend on the company's ability to secure the additional restructuring loan and maintain operational viability during the proceedings. However, the need for increasingly larger loans suggests a concerning cash burn rate that could challenge any restructuring efforts.
MUNICH, DE / ACCESS Newswire / January 31, 2025 / Mynaric AG (NASDAQ:MYNA)(ISIN: US62857X1019)(FRA:M0YN)(ISIN: DE000A31C305) (the "Company") announces the extension of the maturity of its three bridge loans and the expectation to agree on a fourth bridge loan, a separate restructuring loan and an application for the initiation of a financial reorganization under the German Corporate Stabilization and Restructuring Act (Gesetz über den Stabilisierungs- und Restrukturierungsrahmen für Unternehmen ("StaRUG").
New maturity date of bridge loans
The Company today entered into an amendment to its existing loan agreement with its U.S.-based lenders, which are funds affiliated with a U.S.-based global investment management firm (the "Lenders"), pursuant to which the Lenders have agreed to extend the maturity date of the three existing bridge loans in the aggregate amount of USD 21.5 million from January 31, 2025 to February 7, 2025. The Lenders provided such loans in October 2024, November 2024 and December 2024.
The three bridge loans can still be terminated early if, among other things, the previously commissioned independent German restructuring expert provides notice on or prior to the new maturity date that it is no longer more likely than not that the Company is capable of being restructured.
As of January 29, 2025, the Company had cash and cash equivalents on hand of EUR 8.4 million, which the Company will use to meet its ongoing operational and working capital needs.
The provision that the Company made in December 2024 for contingent liabilities resulting from guarantee obligations in the amount of all loans provided by the Lenders outstanding, including interest and exit fee, remains in place.
Preparation of StaRUG proceedings
The extension of the maturity date is the result of very advanced discussions with the Lenders for a fourth bridge loan and a separate restructuring loan. Based thereon, the management board of the Company concluded today that it is mostly probable that the Company will apply for the initiation of StaRUG proceedings with the competent local court (Amtsgericht) of Munich in the upcoming days. The expected filing of the application for the initiation of StaRUG proceedings would, among other things, remain subject to the successful finalization of the negotiations and resolutions of the management board and the supervisory board of the Company.
The fourth bridge loan is to cover the expected ongoing operational and working capital needs of the Company until the anticipated time of the conclusion of StaRUG proceedings and is expected to have similar terms to the three existing bridge loans. The Company is in the process of verifying the exact amount needed and expects it to be slightly higher than the aggregate initial principal amount of the three bridge loans.
The separate loan agreement pursuant to which the Lenders would provide additional capital would cover the capital expected to be needed to support the Company's production plan and fund its ongoing operations per the restructuring plan and would be subject to the condition that the StaRUG proceedings are concluded successfully. The Company is also in the process of verifying the exact amount needed for such loan.
Currently, it is envisaged that the restructuring plan will provide for a reduction of the Company's share capital to zero followed by a capital increase excluding statutory subscription rights. Accordingly, the StaRUG proceedings may result in shareholders losing all of their investment in the Company. Other financing opportunities for the Company are currently neither available nor in sight.
About Mynaric
Mynaric (NASDAQ:MYNA)(FRA:M0YN) is leading the industrial revolution of laser communications by producing optical communications terminals for air, space and mobile applications. Laser communication networks provide connectivity from the sky, allowing for ultra-high data rates and secure, long-distance data transmission between moving objects for wireless terrestrial, mobility, airborne- and space-based applications. The company is headquartered in Munich, Germany, with additional locations in Los Angeles, California, and Washington, D.C. For more information, visit mynaric.com.
Forward-Looking Statement
This release includes forward-looking statements. All statements other than statements of historical or current facts contained in this release, including statements regarding our future results of operations and financial position, industry dynamics, business strategy and plans and our objectives for future operations, are forward-looking statements. These statements represent our opinions, expectations, assumptions, beliefs, intentions, estimates or strategies regarding the future, which may not be realized. Forward looking statements are often indicated by terms such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "goal," "intend," "look forward to," "may," "plan," "potential," "predict," "project," "should," "target" "will," "would" and/or the negative of these terms or other similar expressions that are intended to identify forward-looking statements.
The forward-looking statements included in this release are based largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements involve known and unknown risks, uncertainties and assumptions that are difficult to predict or are beyond our control, and actual results may differ materially from those expected or implied as forward-looking statements. These risks, uncertainties and assumptions include, but are not limited to (i) the impact of any geopolitical tensions on the global economy, our industry and markets as well as our business, (ii) risks related to our limited operating history, our history of significant losses and the execution of our business strategy, (iii) risks related to our ability to successfully manufacture and deploy our products and risks related to serial production of our products, (iv) risks related to our sales cycle which can be long and complicated, (v) risks related to our limited experience with order processing, our dependency on third-party suppliers and external procurement risks, (vi) risks related to defects or performance problems in our products, (vii) effects of competition and the development of the market for laser communication technology in general, (viii) risks related to our ability to manage future growth effectively and to obtain sufficient financing for the operations and ongoing growth of our business, (ix) risks relating to the uncertainty of the projected financial information, (x) risks related to our ability to adequately protect our intellectual property and proprietary rights and (xi) changes in regulatory requirements, governmental incentives and market developments. Moreover, new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. We caution you therefore against relying on these forward-looking statements, and we qualify all of our forward-looking statements by these cautionary statements.
The forward-looking statements included in this release are made only as of the date hereof. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Unless required under applicable law, neither we nor any other person undertakes any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release or otherwise. You should read this release with the understanding that our actual future results, levels of activity, performance and events and circumstances may materially differ from what we expect.
This release may include certain financial measures not presented in accordance with IFRS. Such financial measures are not measures of financial performance in accordance with IFRS and may exclude items that are significant in understanding and assessing our financial results. Therefore, these measures should not be considered in isolation or as an alternative to loss for the period or other measures of profitability, liquidity or performance under IFRS. You should be aware that our presentation of these measures may not be comparable to similarly titled measures used by other companies, which may be defined and calculated differently.
Company: | Mynaric AG |
| Bertha-Kipfmüller-Str. 2-8 |
| 81249 München |
| Germany |
Phone: | +49 8105 7999 0 |
E-mail: |
SOURCE: Mynaric AG
View the original press release on ACCESS Newswire
FAQ
What is the new maturity date for Mynaric's (MYNA) bridge loans?
How much cash does Mynaric (MYNA) currently have on hand?
What is the total value of Mynaric's (MYNA) existing bridge loans?
What are the potential consequences of Mynaric's (MYNA) StaRUG proceedings for shareholders?
When did Mynaric (MYNA) receive its three existing bridge loans?
