Paris - GenSight Biologics (Euronext: SIGHT, ISIN: FR0013183985, PEA-PME eligible) ('GenSight' or the 'Company'), a biopharma company focused on discovering and developing innovative gene therapies for retinal neurodegenerative diseases and central nervous system disorders, today announced that it obtained a EUR6.75 million loan from a bank syndicate formed with Credit Industriel et Commercial (CIC), BNP Paribas and Bpifrance, in the form of a state-guaranteed loan (Pret Garanti par l'Etat) (the 'PGE').

'The PGE loan and the second tranche of Kreos bonds will provide us with over EUR10 million of aggregated cash with practically no dilution to existing shareholders,' commented Thomas Gidoin, Chief Financial Officer of GenSight Biologics. 'Together with anticipated revenues from the Temporary Authorization for Use of LUMEVOQ in France, we expect to be financed until at least mid-2021.'

Initiated by the French Government to support companies during the COVID-19 crisis, the PGE is a bank loan with a fixed interest rate ranging from 0.25% and 1.75%. After an initial interest-only term of one year, the loan can be amortized over up to five years at the option of the Company. The French government guarantees 90% of the borrowed amount.

In parallel with this financing, GenSight has amended certain terms and conditions of the bond agreement with Kreos Capital which was announced by the Company on December 20, 2019 and which included two main tranches (the 'Kreos Transaction'). The first tranche of EUR6 million in straight and convertible bonds was drawn in December 2019 ('Tranche A'). The second tranche of EUR4 million in straight and convertible bonds was available to be drawn through September 2020, conditioned on GenSight obtaining a qualifying financing ('Tranche B'). Following the grant of the PGE and the amount of revenues anticipated to be generated from Autorisations Temporaires d'Utilisation payantes ('ATUs'), the parties have agreed that Tranche B may be drawn in the coming weeks under more flexible conditions and no longer conditioned to the initial qualifying financing. Although the total amount of EUR4 million for Tranche B remains unchanged, the proportion between straight bonds and convertible bonds has been amended to include additional convertible bonds B and fewer straight bonds B, as further described below. Kreos also agreed to extend the interest-only period to December 2020. The Kreos Transaction also provided for a possible third tranche of EUR2 million which could be made available at a later date.

Key characteristics of the amended Tranche B of the Kreos Transaction

Tranche A of the Kreos Transaction comprised of 420,000,000 straight bonds with a nominal value of EUR0.01, 1,800,000 convertible bonds with a nominal value of EUR1 and 534,521 warrants, was drawn on December 23, 2019. With an unchanged 45-month maturity, the 420,000,000 straight bonds featured a nine-month interest-only period which has now been extended to twelve months. To date, the convertible bonds and the warrants issued under Tranche A are still outstanding and exercisable in light of market conditions.

Tranche B, which was to be composed initially of either 400,000,000 straight bonds with nominal value of EUR0.01 (the 'Straight Bonds B'), or, at Kreos' option, a combination of 280,000,000 Straight Bonds B, 1,200,000 convertible bonds with a nominal value of EUR1 (to be deducted from the amount of the straight bonds) (the 'Original Convertible Bonds B') and 133,630 warrants (the 'Warrants B'), was subject to the realization of certain conditions precedent, including the completion of a qualifying financing. Following the grant of the PGE and an expected increase in revenue from the ATUs, the parties have agreed that Tranche B may be drawn as soon as the 5th ATU is granted in the coming weeks.

In addition, the Company and Kreos have agreed that Kreos would have the option that Tranche B consist of 250,000,000 Straight Bonds B, 1,200,000 Original Convertible Bonds B, 133,630 Warrants B and an additional 300,000 convertible bonds with a nominal value of EUR1 (the 'Additional Convertible Bonds B'), which would be issued pursuant to the 19th resolution of the combined general meeting held on April 29, 2020.

The Original Convertible Bonds B and the Warrants B terms and conditions and the rest of the Kreos Transaction remain as described in the prospectus approved by the Autorite des marches financiers (AMF) on December 20, 2019 under number 19-583 (the 'Prospectus').

About GenSight Biologics

GenSight Biologics S.A. is a clinical-stage biopharma company focused on discovering and developing innovative gene therapies for retinal neurodegenerative diseases and central nervous system disorders. GenSight Biologics' pipeline leverages two core technology platforms, the Mitochondrial Targeting Sequence (MTS) and optogenetics to help preserve or restore vision in patients suffering from blinding retinal diseases. GenSight Biologics' lead product candidate, LUMEVOQ (GS010; lenadogene nolparvovec), is in Phase III trials in Leber Hereditary Optic Neuropathy (LHON), a rare mitochondrial disease that leads to irreversible blindness in teens and young adults. Using its gene therapy-based approach, GenSight Biologics' product candidates are designed to be administered in a single treatment to the eye by intravitreal injection to offer patients a sustainable functional visual recovery.

Disclaimers

This press release does not constitute an offer to sell nor a solicitation of an offer to buy, nor shall there be any sale of ordinary shares in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

This press release has been published in French and English; in the event of any difference between the texts, the French version will prevail.

The distribution of this document may, in certain jurisdictions, be restricted by local legislations. Persons into whose possession this document comes are required to inform themselves about and to observe any such potential local restrictions.

This document does not constitute an offer to the public in France and the securities referred to in this document can only be offered or sold in France pursuant to article L. 411-2 of the French Monetary and Financial Code to qualified investors (investisseurs qualifies) as defined in article 2(e) of the Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 (the 'Prospectus Regulation').

This announcement is not an advertisement and not a prospectus within the meaning of the Prospectus Regulation.

With respect to the member States of the European Economic Area, no action has been undertaken or will be undertaken to make an offer to the public of the securities referred to herein requiring a publication of a prospectus in any relevant member State. As a result, the securities may not and will not be offered in any relevant member State except in accordance with the exemptions set forth in Article 1(4) of the Prospectus Regulation or under any other circumstances which do not require the publication by the Company of a prospectus pursuant to Article 3 of the Prospectus Regulation and/or to applicable regulations of that relevant member State.

This document is only being distributed to, and is only directed at, persons in the United Kingdom that (i) are 'investment professionals' falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the 'Order'), (ii) are persons falling within Article 49(2)(a) to (d) ('high net worth companies, unincorporated associations, etc.') of the Order, or (iii) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of Article 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as 'Relevant Persons'). This document is directed only at Relevant Persons and must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity to which this document relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.

MiFID II Product Governance/Target Market: Retail Clients, Professional Clients and Eligible Counterparties - Only for the purposes of the producers' product approval process, the assessment of the target market for the new actions led to the conclusion that : (i) the target market for new equity includes retail clients, eligible counterparties and professional clients, as defined by Directive 2014/65/EU, as amended ('MiFID II') and (ii) all distribution channels for new equity to retail clients, eligible counterparties and professional clients are appropriate. Any person subsequently offering, selling or recommending the new shares (a 'Distributor') must take into consideration the producers' target market. However, a distributor subject to MiFID II is required to make its own assessment of the target market for the new shares (retaining or further developing the producers' assessment of the target market) and to determine the appropriate distribution channels.

Contact:

Thomas Gidoin

Tel: +33 (0)1 76 21 72 20

Email: tgidoin@gensight-biologics.com

(C) 2020 Electronic News Publishing, source ENP Newswire