Avenir Telecom jumped more than 18% on the Paris Bourse on Wednesday, after announcing that it had discontinued its OCABSA financing and had changed its shareholder structure.

With a cash position of more than 25 million euros, the designer and distributor of cell phones and accessories under the Energizer brand now believes it has sufficient financial resources.

Its decision means that the financing line in the form of bonds convertible into shares with share subscription warrants (OCABSA) concluded with Negma Group Investment will expire at its term, in October 2023, without giving rise to any new drawdowns.

In a recent study, Euroland Corporate's teams pointed out that recourse to OCABSA financing 'constitutes a high-risk instrument which all too rarely offers value-creating efficiency'.

In most cases, the rapid sale of new shares on the market leads to strong downward pressure on the share price.

Avenir Telecom set up this financing line in 2020 on behalf of Negma Group Investment, which led to a total of six drawdowns, for a cumulative gross amount of five million euros.

As of February 1, Negma held just over 24% of the share capital and voting rights.

At the same time, Robert Schiano, CEO and co-founder of Avenir Telecom, claims to have acquired over 2.1 million shares for a total of 233.000 euros.

The executive, who has thus increased his stake to 3.2% of the capital from 0.01% previously, assures us that he intends to pursue his share buyback strategy.

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