MCH Group | Event announcement by art. 53 CR | Capital increase with the support of two major shareholders

The MCH Group plans to increase its capital with the support of two major shareholders.

The MCH Group plans to increase capital to secure the liquidity needed to refinance a CHF 100 million bond loan and develop the company. The Basel City government has urged the Legislature to participate in the planned capital increase of up to CHF 34 million. Under these conditions, Lupa Systems will invest up to CHF 34 million in the company. The capital increase will be carried out by the stock acquisition rights of all shareholders.

After a pandemic loss over the last two years, a series of financial measures are needed to ensure the refinancing of the CHF 100 million loan scheduled for May 2023 and the investment needed to grow the company. .. The focus is on strengthening the capital base through further renewal of debt lending. As a first step, the MCH Group plans to implement a new capital increase with stock acquisition rights of all shareholders.

“During a very difficult pandemic year, we laid the foundation for a successful future. We have ambitious growth goals, a compelling strategic structure, and concrete implementation plans.” Andrea Zappia, Chairman of the MCH Group, said. “The fact that Basel City Parliament and Rupa Systems want to invest up to CHF 34 million each in the MCH Group as part of a planned capital increase emphasizes that they are confident of the path they have taken.”

In 2020, Basel City (subject to jurisdiction approval) and Rupa Systems will assist in refinancing loans with equivalent shares in case the company is unable to refinance itself. I agreed. This “backstop” enables companies to grow after a pandemic.

Therefore, the Legislature of the City of Basel proposes to the Grand Council to participate in the planned capital increase by acquiring new capital up to CHF 34 million. Therefore, public law agencies participating in the MCH Group will continue to hold at least 33.34% of the shares or voting rights.

During the 2020 capital increase, Basel City converted CHF 24.2 million of its existing interest-free loan of CHF 30 million to equity. Upon entering the MCH Group, Lupa Systems suggested a maximum investment of CHF 75 million and invested CHF 48 million as part of the capital increase in 2020. With the currently planned capital increase, Lupa Systems is also ready to invest up to CHF. 34 million, as in Basel City, and therefore, if necessary, exceed the initially planned maximum investment.

In addition, the State Council proposes to the Grand Council to waive the repayment of the residual loan of CHF 5.8 million that was not converted into capital in 2020. This was already being considered in 2020 and is now justified. Due to the participation of the public sector, the group was not entitled to receive funding from the Union due to difficulties in the context of a pandemic.

As soon as a legally binding parliamentary decision is made, the MCH Group will submit a capital increase to shareholders at an extraordinary general meeting of shareholders. Specific details, especially issue price and acquisition law requirements, will be resolved in the coming months.

contact address

Public relations window to the media:

Emmanuel Kuhn
Corporate Communication Manager
+41 58206 22 43
[email protected]

Investor Public Relations:

Christian Jecker
+ 41 58206 22 52
[email protected]

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