MedinCell and the European Investment Bank (EIB) signed an amendment to the loan agreement that replaces the former financial covenant by a new one requiring the Company (i) constantly have at least ?8 million in available cash and cash equivalent, and (ii) benefit from at least one year of cash visibility on the basis of its base-case cash forecast. In case of default, the Company would have 30 days to remedy. After this period, EIB would have the right to ask for partial or total early repayment of the existing loan.

The Company points out that, with its current base cash forecast, the covenant should be met during the current fiscal year and beyond. This forecast does not include the potential additional revenues from new service contracts or licensing agreements. The financial clause of the agreement that has been removed stated that the sum of ?cash plus shareholders' equity?

must be greater than ?1. If this covenant was not met, EIB had the right to ask for a partial or total early repayment of the existing loan. Given the specificities of its activity, MedinCell did not meet that covenant as of March 31, 2023, closing date of the last fiscal year. On June 12, 2023, the Company obtained a waiver from EIB, in which it abandoned its right to ask for partial or total early repayment of the loan.

Both parties also decided at that time to revisit the agreement to prevent the situation from happening again.