Investment in Aleva Neurotherapeutics SA

23 December 2021

CIP MERCHANT CAPITAL LIMITED

("CIP" or the "Company") 

Investment in Aleva Neurotherapeutics SA

CIP is pleased to announce its investment in Aleva Neurotherapeutics SA ("Aleva"), the Swiss developer of the next generation of directional deep brain stimulation systems ("DBS Systems") for the treatment of neurological degenerative diseases such as Parkinson's disease. The Company has subscribed for a CHF 1.0 million convertible loan (the "Convertible Loan") issued by Aleva to raise, in aggregate, CHF 5.0 million, which will be converted, at the satisfaction of certain conditions, including a further material financing round, into share capital of Aleva at a valuation of CHF 50 million. Interest on the Convertible Loan will accrue at 12 per cent. per annum until conversion or the date of maturity, being 31 January 2023.

Aleva was founded in 2008 as a spin-off of the Swiss Federal Institute of Technology in Lausanne, Switzerland, and its DBS System was CE-Marked in 2019. The DBS System's commercial launch in selected European hospitals was severely impacted by COVID-19 pandemic, however the Company's pipeline has improved since Stefano Alfonsi joined Aleva as Chief Executive Officer in August 2021 and the Board believes Aleva's technology has significant potential for distribution across Europe.

In 2020, Aleva achieved revenue of CHF 0.4 million and a net loss for the period of CHF 2.0 million. As at 31 December 2020, Aleva had cash and cash equivalents of CHF 3.4 million and negative net assets of CHF 0.7 million (including shareholder loans and convertible loans positive net assets of CHF 2.9 million).

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The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European (Withdrawal) Act 2018.