Capital Raise Follows Successful Listing at the Spanish Mercado Alternativo Bursátil (MAB) through a Reverse Acquisition of Bionaturis by ADL Biopharma

León, Spain, 30 July 2018: ADL Bionatur Solutions (MAB: ADL), a company specialized in research and development of health products, services and industrial fermentation production, today announced the closing of a € 12 million fund raising with institutional and qualified investors in Spain. The transaction follows the listing in May 2018 on the Mercado Alternativo Bursátil (MAB) a sub-market of the Spanish Prime Market (BME), through a reverse acquisition of Bionaturis by ADL Biopharma.

On 19 July 2018, ADL’s Board of Directors set a price per share to € 2.20 for the € 12 million capital increase with qualified investors, excluding subscription rights. Under the transaction, ADL issued 5,454,546 new shares, which are issued and listed on 30 July. ADL´s freefloat has now increased to over 20 %, thus its main shareholder Black Toro Capital (BTC) now holds 73,23 %, while Víctor Infante, founder of Bionaturis, holds 5,08 % of the Company.

Pilar de la Huerta, CEO of ADL Bionatur Solutions commented: “We are very proud to be trusted by so many major funds and investors. This financing supports our confidence in the strategy and future growth of the Company, shared with the investors during the fund raising. I would like to thank both the teams at ADL Bionatur Solutions and BTC plus our external consultants for their great efforts during these months.”

In light of the transaction, Banco Sabadell valued the average price of the Company shares at € 3.52 each, representing a potential upside of 60 % compared to the offer price. Furthermore, GVC Gaesco, a Spanish Investment bank, recently initiated coverage of ADL.

Impulsa is acting as the registered financial advisor, Banco Sabadell and GV Gaesco as placing banks. KPMG and Cuatrecasas supported the transaction as lawyers, and Páez & Serrano and EY participated as the financial advisors in the transaction.

ADL is one of the European biotechnological leaders in fermentation and high value-add microbiology and development of chemical processes within the health sector. Based on the products developed in the animal health sector, ADL has a big potential for new developments also related to human health in the field of pro and post-biotics products. Today, the company has over 290 employees. ADL has a plant of 2,400 m3 industrial capacity and a pilot plant of 1,200 m2 in León, Spain, three research facilities in Jerez, San Sebastián and Barcelona, Spain, plus a sales office in Boston, MA, USA. In 2017, ADL recorded revenues of € 14 million and expects to double these revenues in 2018.

Through Bionaturis, its R&D division, ADL holds a portfolio of ten international patent families with state-of-the-art biotechnology assets. In 2017, the company launched eight products, all licensed by major pharmaceutical companies. Another five products are expected to be launched within the next three years.

Among the top-tier contracts of the fermentation division, two stand out, in particular: a contract worth € 145 million for the production of a specific breast milk ingredient, signed with a global market leader from Germany, and the collaboration with the North American Company Amyris for a total contract value of € 16 million. Moreover, the contracts signed to date account for over 75 % of forecast revenues over the next six years.

Furthermore, ADL Biopharma has approval from the US FDA (Food & Drug Administration) to export oral products produced in its production plant. The United States Patent and Trademark Office (USPTO) has granted ADL, through Bionaturis, a patent to a vaccine for the treatment and prevention of visceral leishmaniasis, also known as black fever or Dumdum fever, in both, humans and dogs. ADL’s R&D and Animal Health Division, Bionaturis, has licensed and developed the vaccine, which is currently the subject of an exclusive licensing option with a leading multinational company in the vaccine sector.

Through its bioprocess division Splittera, Bionaturis also offers cutting-edge purification services for pharmaceutical products and licensing opportunities to its proprietary technology. The technologies are protected by patents in Australia, China, Japan and the European Union. for commercial exploitation to one of the global leaders of the field.

About ADL Bionatur Solutions

ADL Bionatur Solutions (MAB: ADL) is a company specialized in research and development of health products, services and industrial fermentation production. It is majority owned by the investment fund Black Toro Capital (BTC) with over 70 % holding. ADL was created through the reverse listing and integration of ADL Biopharma and Bionaturis. The integration involved combining R&D specialization in health products and services with industrial fermentation production and manufacturing capacity in a single entity. ADL is listed on the Mercado Alternativo Bursátil since May 2018.