Source: https://www.leclanche.com/invitation-to-the-upcoming-annual-general-meeting-of-shareholders-to-be-held-on-9-may-2019-at-900-a-m-cet-in-yverdon-les-bains/
Timestamp: 2020-08-09 05:03:23
Document Index: 343700713

Matched Legal Cases: ['Art. 3', 'art. 725', 'art.\n725', 'art. 725', 'art. 3', 'Art. 3', 'art. 3', 'Art. 3']

Invitation to the upcoming Annual General Meeting of Shareholders to be held on 9 May 2019 at 9:00 a.m. CET in Yverdon-les-Bains - Leclanché
Invitation to the upcoming Annual General Meeting of Shareholders to be held on 9 May 2019 at 9:00 a.m. CET in Yverdon-les-Bains
Posted on 18th April 2019 30th January 2020 Author Annick BidivilleCategories Company News, Press Releases
Leclanché SA convenes its Annual Ordinary General Meeting on 9 May 2019
The Board of Directors proposes the conversion of CHF 36 million of debt owed to FEFAM1 into shares of the Company in order to strengthen the balance sheet
The Board of Directors proposes a reduction in the nominal value of the shares to strengthen the Company’s balance sheet situation
Mr. Bénédict Fontanet is proposed as a new director
Among the decisions submitted for shareholder approval, the Board of Directors proposes the conversion of CHF 36 million of debt contracted with FEFAM, the Company’s main shareholder, into equity. This restructuring measure, negotiated with FEFAM, will strengthen the balance sheet and drive continued investment interest in the company during a period of strong growth in Leclanché’s order book in the fast-growing e-Transport sector.
Finally, the Board of Directors proposes the election of Mr. Bénédict Fontanet, 59 years old, to the Board of Directors. Mr. Fontanet is a board member of Golden Partner SA – an investment advisor to FEFAM, the Company’s main shareholder – and was introduced to the Board of Directors by Golden Partner. A recognized Geneva personality, former President of the Geneva Christian Democratic Party and former Member of the Grand Council, lawyer and director of several companies, Mr. Fontanet will bring his vast experience to Leclanché.
Annual Report 2018, Consolidated Financial Statements 2018, Statutory Financial Statements 2018 and Compensation Report 2018 of LECLANCHÉ S.A.
Partial amendment of the Articles of Association / Creation of Conditional Share Capital to employees (Art. 3ter)
1.1 Approval of the Annual Report 2018, Consolidated Financial Statements 2018 and Statutory Financial Statements 2018 of LECLANCHÉ S.A.
Mr. Stefan A. Müller
Mr. David Anthony Ishag
Proposed Version (changes
The rest of paragraph 1 as well as paragraphs 2, 3 and 4 remain unchanged.]
Proposal of the Board of Directors: The Board of Directors proposes to increase the existing conditional share capital for the purpose of employees
participation and to amend Article 3ter of the Company’s Articles of association as follows:
The rest of paragraph 1 and paragraph 2 remain unchanged.] Article 3 ter:
The share capital may be increased in an amount not to exceed CHF 9,000,000.00through the issuance of up to 6,000,000fully paid registered shares with a nominal value of CHF 1.50 per share by the issuance of new shares to employees of the Company and group companies. […][The rest of paragraph 1 and paragraph 2 remain unchanged.
Explanation: From 2014, the Company introduced a performance related Capped Stock Option (“CSO”) Plan for senior executives and high performer employees, as amended on 1 March 2019. The purpose of the Plan is to provide selected senior executives and high performer employees within the Group with the opportunity to participate in Leclanché’s long-term success. Considering the growth in employees the Company would like to increase the flexibility in Conditional Share Capital to employees. Additionally, as of 31 December 2018, circa 2.5 million of granted options have vested and another circa 0.6 million shares will vest in December 2019, which makes the current available pool insufficient in case all vested options are exercised by the option holders before the 2020 AGM.
9.1 Overview of Financial Restructuring and Proposed Measures
Since the Company was as per 31 December 2018 and still is in a capital loss situation (Kapitalverlust; perte de capital) according to art. 725 para. 1 Swiss Code of Obligations (“CO”), the Board of Directors proposes further financial restructuring steps. The Board of Directors has evaluated different options and developed a financial restructuring proposal to improve the financial situation of the Company. This proposal includes:
a reduction of the Company’s share capital by reduction of the nominal value (together, the “Restructuring Plan”).
The Board of Directors is of the view that given the Company’s status, these measures are necessary to cure the capital loss situation according to art.
725 para. 1 CO, to stabilize the balance sheet and to improve the ability of the Company to raise capital and funding from investors.
To fund the Company’s operations and investments, several financing agreements have been entered into with the Finexis Equity Fund SCA (“FEF”) and certain of its sub-funds and affiliated companies (together, “FEFAM”) in the past years (the “Financing Agreements”). According to the Financing Agreements, most of which are convertible loans or contain conversion features, the Company is currently indebted to FEFAM with an aggregate amount of approx. CHF 45.4 million (the “FEFAM Debt”).
In order to address this situation, the Board of Directors has agreed in principle with FEFAM to convert a portion of the FEFAM-Debt in a maximum aggregate amount of CHF 35,961,919.50 into a maximum of 23,974,613 registered shares of the Company with a par value of CHF 1.50 each, subject to fulfilment of the requirements pursuant to Swiss law and approval by the shareholders’ meeting of the Company (the “Debt-to-Equity-Conversion”). In order to implement the Debt-to-Equity-Conversion, the pre-emptive rights of shareholders will have to be excluded in connection with the required capital increase, which requires shareholders’ approval with a qualified majority.
The following legal entities belonging to FEFAM are parties to the Financing Agreements and shall be part of the proposed Debt-to-Equity-Conversion (the “Creditors”), and they have committed to convert the below amounts into equity:
Finexis Equity Fund SCA – Renewable Energy Sub-Fund (“FEF-RE”) will convert claims of maximum CHF 22,100,000.00 of FEF-RE against the Company under to a funding agreement with the Company dated 15 February 2018, as amended from time to time (the “Funding Agreement”);
FEF-RE will convert claims of maximum CHF 1,812,122.00 of FEF-RE against the Company and Finexis Equity Fund SCA – E-Money Strategies Sub-Fund (“FEF-EM”) will convert claims of maximum CHF 259,609.50 of FEF-EM against the Company under an existing convertible loan agreement dated 7 December 2014, as amended from time to time (the “FEFAM Convertible Loan Agreement (Facility B)”);
FEF-RE will convert claims of maximum CHF 10,316,816.00 of FEF-RE against the Company and FEF-EM will convert claims of maximum CHF 1,473,372.00 of FEF-EM against the Company under an existing convertible loan agreement dated 27 February 2016, as amended from time to time (the “FEFAM Convertible Loan Agreement (Facility C)”).
Besides the Debt-to-Equity-Conversion, as a further financial restructuring measure and to cure the capital loss situation of the Company, the Board of Directors proposes to reduce the Company’s share capital through a reduction of the nominal value of each share from CHF 1.50 to CHF 0.10 (the “Capital Reduction”).
Proposal of the Board of Directors: The Board of Directors proposes to increase the Company’s share capital in an amount not to exceed CHF 35,961,919.501 from CHF 175,715,808.00 to a maximum of CHF 211,677,727.50 by way of an ordinary capital increase as follows:
Entire nominal amount by which the share capital is to be increased: maximum amount of CHF 35,961,919.502
Pre-emptive rights: the entire nominal increase of a maximum of CHF
35,961,919.501 will be subscribed by the Creditors, which is why the pre-emptive rights of shareholders for all newly issued shares in the maximum amount of 23,974,6131 are excluded
Explanation: 50% of the Company’s share capital and legal reserves (including capital contribution reserves) are no longer covered by net equity in the sense of art. 725 para. 1 CO (“capital loss”). For improving the financial status of the Company and its balance sheet position, the Debt-to-Equity-Conversion is proposed. In order to implement the Debt-to-Equity Conversion and to issue the required number of new shares to the Creditors, it is necessary to increase the Company’s share capital in the maximum amount of CHF 35,961,919.501, thereby excluding the pre-emptive rights of shareholders.
9.3 Capital Reduction through Nominal Value Reduction
The share capital shall be reduced from CHF 211,677,727.501 (subject to and after the Debt-to-Equity-Conversion) by the amount of CHF 197,565,879.001 to CHF 14,111,848.501.
The capital reduction shall be implemented by reducing the nominal value of all outstanding 141,118,4851 registered shares from currently CHF 1.50 per share to CHF 0.10 per share.
The reduction amount of CHF 197,565,879.001 shall be allocated to the capital contribution reserves.
The special report by the auditor required by law is available. It confirms that all claims are fully covered despite the share capital reduction.
The Articles of Association of the Company will be amended as follows:
ProposedVersions(changes
The share capital amounts to CHF211,677,727.501, divided into 141’118’4851fully paid-in registered shares with a par value of CHF 1.50 each.
The share capital amounts to CHF14,111,848.501, divided into 141,118,4851fully paid-in registered shares with a par value of CHF 0.10each.
The board of directors is authorized to increase the share capital, at any time until May 8, 20213, by a maximum amount of CHF 60,511,905.00 by issuing a maximum of 40,341,270 fully paid up shares with a nominal value of CHF 1.50 each. […]
The board of directors is authorized to increase the share capital, at any time until May 8, 20212, by a maximum amount of CHF 4,034,127.00by issuing a maximum of 40,341,270 fully paid up shares with a nominal value of CHF 0.10each. […]
The share capital may be increased in an amount not to exceed CHF 9,000,000.002through the issuance of up to 6,000,0002fully paid registered shares with a nominal value of CHF 1.50 per share by the issuance of new shares to employees of the Company and group companies. […]
The share capital may be increased in an amount not to exceed CHF 600,000.002through the issuance of up to 6’000’0002fully paid registered shares with a nominal value of CHF 0.10per share by the issuance of new shares to employees of the Company and group companies. […]
[The rest of paragraph 1 and paragraph 2 remain unchanged.
[The rest of paragraph 1 as well as paragraphs 2, 3, 4 and 5 remain unchanged. Article 3 quinquies:The share capital may be increased in an amount not to exceed CHF 3,734,127.00 through the issuance of up to 37,341,270 fully paid-up shares with a nominal value of CHF0.10per share. […][The rest of paragraph 1 as well as paragraphs 2, 3, 4 and 5 remain unchanged.]
Enclosed with the invitation sent to shareholders are a registration form and an instruction form which shareholders are asked to complete and return by mail to the following address if they wish to attend, or to be represented at, the shareholders’ meeting: areg.ch ag, Fabrikstrasse 10, 4614 Hägendorf.
The annual report 2018 which contains the consolidated financial statements, the statutory financial statements as well as the auditor’s report and the compensation report 2018 are available to shareholders at the Company’s headquarters. The annual report and the compensation report are also available on Leclanché’s website at https://www.leclanche.com/investor-relations/financial-reports/.
Shareholders registered with voting rights in the share register as of April 29, 2019 at 17:00, will be authorised to participate and to vote at the shareholders’ meeting. They will receive their entrance card and voting material upon returning the registration form or by contacting areg.ch ag at the address indicated above.
Shareholders who do not intend to participate in the shareholders’ meeting personally may be represented by another person authorized by a written proxy who does not need to be a shareholder or by the Independent Proxy. The representatives do not need to be shareholders.
The annual general meeting of shareholders will be held in English. Yverdon-les-Bains, 18 April 2019 For the Board of Directors
A ANNEX 1: EXPLANATIONS TO AGENDA ITEM 11
the maximum aggregate amount of Board of Directors’ compensation for the period until the next AGM in 20204
the maximum aggregate amount of the Executive Committee’s compensation for the financial year 20205
1 FEFAM means: AM INVESTMENT SCA, SICAV-SIF – Liquid Assets Sub-Fund, together with FINEXIS EQUITY
FUND – Renewable Energy Sub-Fund, FINEXIS EQUITY FUND – Multi Asset Strategy Sub-Fund, FINEXIS EQUITY FUND – E Money Strategies Sub-Fund (also called Energy Storage Invest) and, all these funds being in aggregate the main shareholder of Leclanché, hereunder referred to as “FEFAM”.
2A part of the debt to be converted in connection with the Debt-to-Equity-Conversion is convertible at 85% of the Volume Weighted Average Price (VWAP) calculated over the 15 days preceding the 10th trading day (i.e. Aril 24, 2019) before the date of the annual general meeting 2019 (i.e. the VWVAP
calculated from the 25th day to the 16th day before the annual general meeting 2019). Accordingly, the exact conversion price – and, as a consequence, the exact number of shares issued to FEFAM and the exact amount of contributions to be made – cannot be calculated at the date of this invitation. However, because the conversion price will in no event be lower than the nominal value of CHF 1.50, this invitation provides for maximum amounts and numbers which are calculated on the basis of a conversion price of
CHF 1.50. The amounts and numbers marked with 1 will have to be adjusted based on the exact amounts and numbers which will be communicated at the annual shareholders meeting.
3With respect to art. 3quater, the date of May 8, 2021 is included under the assumption that the “Partial amendment of the Articles of Association / Renewal of period for exercising the authorized share capital (Art. 3quater)” as per agenda item 7 is approved by the shareholders’ meeting. If the partial amendment is not approved, the date is May 1, 2020. With respect to art. 3ter, the maximum amount of CHF 9,000,000.00 and the maximum number of shares of 6,000,000 are included under the assumption that the “Partial amendment of the Articles of Association / Creation of Conditional Share Capital to employees (Art. 3ter)” as per agenda item 8 is approved by the shareholders’ meeting. If the partial amendment is not approved, the maximum amount is CHF 4,500,000.00 and the maximum number of shares of 3,000,000 (prior to the capital reduction) and CHF 300,000.00 and the maximum number of shares of 3,000,000 (following the capital reduction).
4This amount does not include compulsory social charges contributions, estimated to approximately CHF 7,500.00.
5This amount does not include compulsory social charges contributions, estimated to approximately CHF 650,000.00.