EQS-Adhoc: Mynaric Secures Another USD 5.0M Bridge Loan To Meet Immediate Working Capital Needs | 23.12.24

MUNICH, December 23, 2024 – Mynaric AG (NASDAQ: MYNA; ISIN: US62857X1019) (FRA: M0YN; ISIN: DE000A31C305) (the “Company”) has today entered into an amendment to its existing loan agreement with its US-based lenders, which are funds affiliated with a US- based global investment management company, pursuant to which such lenders have agreed to provide a third bridge loan of 5.0 million USD. Such bridge loan is in addition to the $95 million originally provided under such loan agreement and the two bridge loans in the aggregate amount of $16.5 million that such lenders agreed to provide in October 2024 and November 2024.

As is the case with the existing US$95 million term loans and the previous US$16.5 million bridge loans, the new bridge loan will be guaranteed and secured by the Company and each of its subsidiaries and bear interest at a rate equal to the Term Secured Overnight Financing Rate ( SOFR) for a term of 3 months, subject to a floor of 2%, plus a margin of 10% or, at the option of the borrower, a certain alternative base rate, subject to a floor of 2%, plus a margin of 9%. The new bridging loan matures on 31 January 2025.

In addition, the maturity date of the two existing bridge loans of $16.5 million was extended and will now also be January 31, 2025.

The availability of the new bridge loan is subject to the satisfaction of certain conditions, including the delivery of an updated liquidity plan from the company’s independent restructuring expert demonstrating that it is more likely than not that the company and its subsidiaries will be able to pay their obligations when due during the term of the bridge loan is outstanding. The Company expects to satisfy this condition as well as all other necessary conditions, and have the bridge loan fully available and occupied as of today to meet immediate working capital needs.

The bridge loan can be terminated early if, among other things, the previously appointed independent German restructuring expert gives notice on or before the bridge loan’s due date that it is no longer more likely than not that the company can be restructured.

Excluding the proceeds from its loans, as of December 20, 2024, the Company had liquid funds on hand of EUR 8.9 million, which the Company will also use to meet its ongoing operational and working capital needs.

The provision that the company made earlier in December for contingent liabilities resulting from guarantee commitments to an amount of all outstanding loans provided by the lender, including interest and withdrawal fees, remains.

The Company continues to negotiate with its lender to provide additional capital needed to support the Company’s production ramp and fund its ongoing operations under the Company’s restructuring plan. The lender’s willingness to provide additional financing remains subject to the initiation of a financial reorganization under the German Business Stabilization and Restructuring Act (Gesetz über den Stabilisierungs- und Restrukturierungsrahmen für Unternehmen (“StarRUG”)). As of today, the Company believes that it is more likely than not that the Lender and the Company will agree on additional financing for financial restructuring and that the Company will apply to commence the StaRUG proceedings. If a StaRUG proceeding is initiated, this may result in shareholders losing part or all of their investment in the company. If StaRUG proceedings are not initiated, the company must explore other funding opportunities that are not currently available or in sight.

About Mynaric

Mynaric (NASDAQ: MYNA ) (FRA: M0YN ) is leading the industrial revolution in laser communications by producing optical communications terminals for aerospace, space and mobile applications. Laser communication networks provide connectivity from the sky, enabling ultra-high data rates and secure, long-distance data transmission between moving objects for wireless ground-based, mobility, airborne and space-based applications. The company is headquartered in Munich, Germany, with additional locations in Los Angeles, California and Washington, DC. For more information, visit mynaric.com.

Forward looking statement

This announcement contains forward-looking statements. All statements other than statements of historical or current fact in this release, including statements about our future results of operations and financial condition, industry dynamics, business strategy and plans and our goals for future operations, are forward-looking statements. These statements represent our views, expectations, assumptions, beliefs, intentions, estimates or strategies regarding the future, which may not be realized. Forward-looking statements are often indicated by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “look forward to,” “may,” ” plan”, “potential”, “predict”, “project”, “should”, “goal”, “will”, “would” and/or the negative of these terms or other similar expressions intended to identify forward-looking statements.

The forward-looking statements included in this release are based largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and goals and financial needs. These forward-looking statements involve known and unknown risks, uncertainties and assumptions that are difficult to predict or beyond our control, and actual results may differ materially from those anticipated or implied by the forward-looking statements. These risks, uncertainties and assumptions include, but are not limited to (i) the effects of any geopolitical tensions or the global covid-19 pandemic on the global economy, our industry and markets and our operations, (ii) risks related to our limited operating history, our history of significant losses and the execution of our business strategy, (iii) risks related to our ability to successfully manufacture and distribute our products and risks related to serial manufacturing of our products, (iv) risks related to our sales cycle which can be long and complex, (v) risks related to our limited experience in order processing, our reliance on third-party suppliers and external procurement risks, (vi) risks related to defects or performance problems in our products, (vii) effects of competition and the development of the market for laser communication technology in general, (viii) risks related to our ability to manage future growth effectively and to obtain sufficient financing for operations and ongoing growth of our business, (ix) risks related to the uncertainty of the forecasted financial information, (x) risks related to our ability to adequately protect our intellectual property and proprietary rights and (xi) changes in regulatory requirements, government incentives and market developments. In addition, new risks appear from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, could cause actual results to differ from those in any future- fancy statements we can make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this release may not occur and actual results may differ materially and adversely from those anticipated or implied in the forward-looking statements. We therefore caution you against relying on these forward-looking statements, and we qualify all of our forward-looking statements with these cautionary statements.

The forward-looking statements included in this announcement are made only as of the date hereof. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, activity levels, achievements or events and circumstances reflected in the forward-looking statements will be achieved or occur. Neither we nor any other person assumes responsibility for the accuracy or completeness of the forward-looking statements. Except as required by applicable law, neither we nor any other person undertakes any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release or otherwise. You should read this release with the understanding that our actual future results, activity levels, performance and events and circumstances may differ materially from what we expect.

This announcement may contain certain financial measures that are not presented in accordance with IFRS. Such financial measures are not measures of financial performance in accordance with IFRS and may exclude items that are material to understanding and assessing our financial performance. Therefore, these measures should not be considered in isolation or as an alternative to loss for the period or other measures of profitability, liquidity or results under IFRS. You should be aware that our presentation of these metrics may not be comparable to similar metrics used by other companies, which may be defined and calculated differently.