21 Oct Successful capital increase with significant oversubscription: Appreciation of management’s performance in aap Implantate AG’s transformation process in COVID-19 times; financing secured at least until end of 2023

Berlin, 21 October 2021

aap Implantate AG (“aap” or the “Company”) has successfully completed the capital increase with subscription rights resolved on 27 September 2021. The order book both for placed oversubscriptions and the private placement was significantly oversubscribed, so that demand could not be fully met. In total, all 1,500,000 aap shares offered in the subscription offer were subscribed by shareholders or placed with investors by way of private placement. On the basis of the fixed subscription price of EUR 3.30 per new share, this results in maximum possible gross issue proceeds of EUR 4.95 million. After deduction of consulting fees and other costs, the Company will receive net inflows of around EUR 4.8 million in the short term.

“I am very pleased with the outcome of the capital increase and on behalf of the entire Management Board I would like to thank our existing and all new shareholders for their trust and support,” says Rubino Di Girolamo, Chairman of the Management Board / CEO of aap. “We take this as a clear appreciation of the performance of the management and the employees in the transformation process of the Company in the very challenging times of the COVID-19 pandemic. We also see this result as a sign of support for the corporate strategy pursued, both in terms of short-term performance metrics and long-term value creation.“

The issue proceeds from the transaction shall be used to finance the planned sales growth with a focus on the USA (especially investments in sets) and the start of the human clinical study for aap‘s antibacterial silver coating technology in the fourth quarter of 2021.

“The profitable and sustainable expansion of the operational LOQTEQ® business, especially with a view to the USA, will continue to have top priority. We will particularly keep a close eye on the factors of quality, customer satisfaction, sales strategy, optimization projects to increase efficiency and operating costs,” says Agnieszka Mierzejewska, Member of the Management Board / COO of aap. “In the long term, our LOQTEQ® product portfolio combined with the antibacterial silver coating will give us a unique competitive position.”

Based on the current and the planned further business development for the coming years, the financing of the operating business and the planned human clinical study for the antibacterial silver coating technology is secured by the net inflows from the capital measure until the end of the financial year 2023. For the following years, the Management Board expects that, if the Company continues to develop

according to plan, the operating business shall generate sustainable cash flow surpluses and thus also ensure the execution of the human clinical study for the antibacterial silver coating technology.

“In the phase that is now coming, the aim is to consistently achieve the growth targets that have been set and to successively further optimize the value creation process,” says Marek Hahn, Member of the Management Board / CFO of aap. “In order to make this transparent, we want to intensify communication between the management and all stakeholders of the company, as such an iterative process supports the strategy implementation within the agreed financial framework.”

SOURCE: aap, 21st October 2021