The objectives of the transaction were multifold:

• Raising with 100% certainty the minimum required capital to finance the development plan
• Securing new cornerstone investors to further strenghten and diversify the cap table
• Involving existing institutional and retail shareholders as well as new investors
• Having the ability to satisfy excess investor demand and raise additional capital to solidify the profile of Avantium amidst acceleration of licensing sales

The transaction structure was tailored to meet all of these objectives, which were successfully achieved:

• EUR 50.5m base deal fully underwritten, guaranteeing the targeted minimum proceeds to Avantium
• New strategic cornerstone investor SCG Chemicals and new cornerstone investor Pieter Kooi investing EUR 12m in aggregate as part of the transaction, strenghtening the share register
• Rights offering structure, enabling participation from all shareholders at this key inflection point, as well as new investors through a public offering in Netherlands and Belgium, and in France via PrimaryBid
• EUR 19.5m upsize option to accomodate excess investor demand and raise further capital

The Rights Offering price was set at EUR 1.87 per share, representing a 35.1% discount to TERP with an 8 for 5 subscription ratio. The EUR 50.5m base deal was launched with irrevocable subscription commitments representing 44% of the offer:

• EUR 4.5m from new strategic cornerstone SCG Chemicals in conjunction with a strategic intent letter for joint commercial opportunities, potential co-investment right in a future plant and grant of a non-exclusive technology license
• EUR 7.5m from new cornerstone investor Mr. Pieter Kooi
• EUR 10.4m from long-term institutional shareholders APG Asset Management, Wierda and Navitas B.V.

The transaction was an outstanding success with a final take up rate of 90.6% highlighting the strong support from institutional and retail shareholders, that had also materialized during the subscription period with robust trading in the shares and rights. Significant interest from institutional investors led to the exercise of the full EUR 19.5m upsize option. The Institutional Upsize ABB was succesfully placed at a limited discount of 3.2% vs the last close and a premium of 23.0% to the Rights Offering issue price, to reach a total deal size of EUR 70m.

The net proceeds of the transaction will fund the completion, commissioning and start-up of the FDCA Flagship Plant and the acceleration of its commercial deployment, as well as help the company demonstrate its long-term financial viability to its stakeholders, such as its customers and prospective licensees.