Boostheat, a specialist in energy efficiency, announced on Friday that the Lyon Commercial Court had authorized it to extend its observation period, following yesterday's presentation of the broad outlines of its proposed turnaround plan.

The plan aims to give the company a new strategic direction, based around its design office business, on the basis of a healthier financial situation.

According to Boostheat, the final draft plan could be circulated to creditors at the end of February/beginning of March, with a view to approval by the Commercial Court at the end of March 2023, thus bringing the safeguard proceedings to an end.

In the meantime, the court-appointed administrator has withdrawn his request for conversion to compulsory liquidation.

The financial resources required to finance the observation period and the implementation of the planned turnaround are estimated at around 7.9 million euros up to the end of 2023.

To finance the observation period, Boostheat has already drawn down an initial 500,000 euros on its existing equity line by issuing bonds redeemable in shares (ORA).

A second drawdown of one million euros is expected within a month.

Finally, HBR Investment Group - the personal holding company of Hugo Brugière, the businessman behind the turnaround plan - has already contributed 500,000 euros in a current account, before contributing a further 500,000 euros when the turnaround project gets underway.

Following all these announcements, Boostheat's share price on the Paris Bourse climbed by over 12% on Friday, after having already soared by over 84% yesterday.

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