Paris, 19 November 2018. Jeantet advised ARCHOS, a company developing high value-added solutions across the world (tablets and smartphones, urban mobility, home and IoT and blockchain security), on its share capital increase with preferential subscription rights on the regulated market of Euronext Paris, for a total amount of € 4.3 million, completed on November 13, 2018.
The originality of this fund raising (oversubscribed up to around 113%, which led to the partial exercise of the extension clause) lies in the transaction structuring, which was tailored to take into account the proximity of the market price with the nominal value of Archos shares (€ 0.50).
In order for the transaction to be more attractive, the company decided to set the subscription price of the new shares to € 0.40, which is atypical as it is lower than the nominal value of Archos shares.
The issuance of the new shares induced a “mixed” settlement: partly in cash or by way of set-off receivables (up to € 0.40 by share) and partly by capitalizing part of the “share premium” account (up to € 0.10 by share).
This quite innovative structuring allowed Archos to raise funds for its development, in the context of a difficult stock market environment in October, while offering more attractive conditions to the subscribers (applying a discount with respect to the share price).
The new funds will be allocated to financing the IA and blockchain software research and development expenses and to financing the marketing expenses required to promote products and services attached to these new vectors of growth.
The transaction was handled by Delubac & Cie, acting as bookrunner. Euroland Corporate acted as company advisor. Raymond James Euro Equities acted as order reception-transmission / institutional investor marketing provider.