Cellnovo Group (Cellnovo) announcing the drawing of a second tranche of financing of €3 million, including €2 million in the form of a loan and €1 million corresponding to Kreos’ subscription to convertible bonds of the company. This drawdown is part of the financing agreement entered into with Kreos Capital in July 2018 and amended by an amendment dated December 28, 2018. As announced by on July 26, 2018, the Company signed an agreement with Kreos for a €20 million financing (the “2018 Loan”). This financing consisted of a €17 million loan in three tranches and an issue by the Company of convertible bonds for a total amount of €3 million in three tranches in favour of Kreos. A first tranche of the loan of €9 million and €1 million of convertible bonds was drawn down in July 2018 and used in part to fully repay an initial €5 million financing concluded in May 2017. At the same time, the Company issued 450,000 share warrants to Kreos pursuant to the terms of the 2018 Loan. As the operational and financial conditions to which the second tranche of the 2018 Loan payable in January 2019 was subject were not met, the Company and Kreos entered into an amendment to the 2018 Loan on 28 December 2018, pursuant to which: (i) the total amount of the second tranche has been reduced to €3 million, (ii) certain terms of the Existing Convertible Bonds, BSA 2017 and BSA 2018 have been amended (iii) Kreos may request that a portion of the 2018 Loan, up to €4 million, be converted into new convertible bonds and (iv) the company shall issue additional share warrants (the “BSA 2019”) to Kreos, with similar terms to those of the BSA 2017 and BSA 2018 as amended by the Amendment. In accordance with the terms of the Amendment, the second tranche of the 2018 Loan was paid to the Company on December 31, 2018, provided that the company: (i) obtains the approval: (a) by its Board of Directors, by January 15, 2019 at the latest, of the planned amendment of the interest rate applicable to the Existing Convertible Bonds and, (b) by a General Shareholders’ Meeting, at the latest by February 28, 2019, of the planned amendments to the exercise price of the BSA 2017 and BSA 2018, and of the requisite delegations to its Board of Directors such that the latter may decide, where appropriate, to proceed with the issue of the Additional Convertible Bonds and new BSA 2019 to Kreos; and (ii) raise additional financing in the form of capital increases or otherwise (negotiations in progress) for an amount of €1.5 million by January 31, 2019 at the latest, and an additional amount of €1.5 million, by March 31, 2019 at the latest; it being stipulated that should the aforementioned conditions not be met, the Amendment would be rescinded, resulting in all or part of the sums lent by Kreos in respect of the 2018 Loan possibly becoming immediately repayable.