ASIT biotech research image

Ahead of schedule on gp-ASIT+

ASIT biotech 26 February 2019 Update
Download PDF

ASIT biotech

Ahead of schedule on gp-ASIT+

Board announcement

Pharma & biotech

26 February 2019

Price

€1.13

Market cap

€20m

US$/€0.88

Cash (€m) at end FY18

8.5

Shares in issue

16.8m

Free float

57%

Code

ASIT

Primary exchange

Euronext Brussels

Secondary exchange

Euronext Paris

Share price performance

%

1m

3m

12m

Abs

(13.7)

(42.9)

(73.5)

Rel (local)

(15.9)

(45.3)

(70.7)

52-week high/low

€4.5

€1.1

Business description

ASIT biotech is a clinical-stage company focused on the development of short-course therapies for allergies. ASIT’s products are based on the proprietary ASIT+ technology platform, allowing the development of products containing highly purified allergen fragments in an adjuvant-free formulation, selected to be safe while maintaining the capacity to stimulate immune tolerance.

Next events

FY18 results

26 Apr 2019

hdm- and pnt-ASIT+ licensing news

Ongoing

H119 results

August 2019

gp-ASIT+ Phase III results

December 2019

Analyst

Andy Smith

+44 (0)20 3077 5700

ASIT biotech is a research client of Edison Investment Research Limited

In a transparent announcement, ASIT Biotech’s board has released the conclusions from its recent meeting. Recruitment for the pivotal Phase III study of gpASIT+ for grass pollen allergies is ahead of schedule with the first patient dosed in January and top-line results are expected before the end of 2019. A €9.0m two-tranche convertible debt placing will extend ASIT’s cash runway to Q320, whereas cash at the end of FY18 was €8.5m.

Year end

Revenue (€m)

PBT*
(€m)

EPS*
(€)

DPS
(€)

P/E
(x)

Yield
(%)

12/17

0.0

(12.0)

(0.94)

0.0

N/A

N/A

12/18e

0.0

(13.8)

(0.83)

0.0

N/A

N/A

12/19e

0.0

(9.5)

(0.52)

0.0

N/A

N/A

12/20e

0.0

(5.3)

(0.20)

0.0

N/A

N/A

Note: *PBT and EPS are both as reported.

Laser-like focus on gp-ASIT+

The nine improvements implemented to secure success in the larger ASIT011 Phase III study in grass allergy patients and the recruitment of patients ahead of schedule increased costs for FY18 by c €1.5m more than our estimates, with €9.9m spent on the ASIT011 study last year. The first patient was dosed at the end of January, by when 450 patients in 73 European centres had been enrolled. Cash at the end of FY18 was reported at €8.5m (vs €2.1m at end FY17). The new note financing extends ASIT’s cash runway to at least Q320, by which time we expect gp-ASIT+ to be closer to approval and for partnerships to have been signed.

Out-licensing and business development

ASIT’s earlier products – hdm-ASIT+ and pnt-ASIT+ for house dust mite and peanut allergies, respectively – will enter Phase I in partnership or with co-financing. This aspect of business development (BD) dovetails well with the ongoing BD effort to secure a marketing partner for gp-ASIT+ in the US, and both the CEO and chief commercial officer have significant BD experience. Early expressions of interest from potential partners have already been received. This has decreased our estimates of operational spend, royalties and milestones from 2019. We had already modelled the out-licensing of these products after Phase I (and gp-ASIT+ in the US), so our changes give the partners greater commercial participation and ASIT less near-term expense and lower longer-term royalties.

Valuation: A modest increase

We have updated our valuation of ASIT for the YE18 cash, exchange rates and the closer proximity of gp-ASIT+ cash flows. We have reduced FY19 R&D spend by c €6.0m to reflect the earlier investment of gp-ASIT+, which we apportioned in FY18, but we have reduced the cash flows from partnering by 25%. Our valuation moves modestly from €118m, or €6.3 per share, to €119m or €6.4 per share. ASIT’s cash will increase from Q319 due to the new convertible note offering. We have assumed the launch of gp-ASIT+ in Germany prior the allergy season in Q122 although a H221 approval could allow significant marketing launch preparation.

Busy behind the scenes

The board of ASIT Biotech has continued its transparency on developments at the company since the management changes and focus on its lead product announced early in January 2019.

Strategic and tactical changes

We summarised ASIT’s earlier changes to its senior management team and the increased focus on its lead product in our recent note. In an additional announcement, ASIT has updated its YE18 cash position to reflect the earlier investment in the Phase III ASIT011 study, which has resulted in patient recruitment being ahead of schedule and the study remaining on track for a top-line results announcement before the end of 2019. We have therefore assumed a full year for the German marketing approval preparation, submission and review, which could place a first launch in the spring of 2021, although this would require commercial-scale manufacture ahead of German approval. For the sake of prudence, we therefore assume first launch in spring 2022; ASIT exceeding these timelines would lead to a material upgrade in our valuation and the approval before the 2022 allergy season, in the summer of 2021 for example, could enable significant marketing effort in Germany to prepare the market.

The continued focus on gp-ASIT+ and the partnering of ASIT’s earlier products (hdm-ASIT+ and pnt-ASIT+ for house dust mite and peanut allergies, respectively) before Phase I has reduced the planned R&D spend in FY19 by €6.0m. Success in the Phase III ASIT011 study will be very visible and aid these partnering efforts and the partnering of the US rights to gp-ASIT+.

The increased focus and investment in gp-ASIT+ in FY18 that resulted in a cash balance at the end of FY18 c €0.5m lower than our estimates has already been addressed by the board’s announcement of a two-tranche €9.0m convertible note financing and the €6.0m lower spend in FY19. The convertible note private placement will be for a minimum of €9.0m split over two tranches with the first tranche representing a third of the total raised and a conversion price of €1.2680 per share. The second tranche will represent up to two-thirds of the issue, with the pricing determined at the closing of the offering in Q319. This extends ASIT’s cash runway until at least Q320 and puts ASIT in a more robust position in partnering discussions. The minimisation of dilution for investors has been well received by investors because the only near-term dilution will come from the drawdowns and warrant exercises from the previous financing. In addition, the larger second tranche of the convertible note financing is contingent on the success of the ASIT011 study and clinical success would be associated with a higher share price that would limit dilution to the existing investors.

Changes to our valuation

Our valuation has been updated for the reported €8.5m YE18 cash position and the increased investment in R&D in H218, changes in exchange rates and the closer proximity of gp-ASIT+ cash flows by advancing our rNPV valuation to start from 2019. As ASIT is now only spending on gp-ASIT+, we have eliminated the R&D expense on the earlier-stage products while reducing the milestone and royalties from the earlier products by 25% to reflect greater partner participation.

We have aligned with the board’s announcement by reducing R&D spend by c €6.0m in FY19 to reflect the earlier investment in gp-ASIT+ in FY18. Our valuation moves modestly from €118m, or €6.3 per share, to €119m or €6.4 per share; this includes the new convertible note financing from Q319, which we illustrate in our model as debt. ASIT’s YE18 cash comprises 7% of our valuation although this will increase from Q319. Any partnering transactions accompanied by upfront payments will be upsides to our forecasts. ASIT’s FY18 financial results will be published on 26 April, when we will be able to refine our estimates of its FY19 cash position and share count.

Recent management changes

In mid-January 2019 ASIT announced a number of changes to the senior management team that include the CEO and CFO. The previous CFO remains on the board of the company. The optimal partnering strategy for shareholders may result in different partners for each product and implies a number of transactions with perhaps different terms. This also means additional and broader BD resource will be required and we assume the new CEO will be involved. In any event, clinical success in the ASIT011 Phase III study that reports at the end of 2019 will validate the platform and likely assist all ASIT’s BD efforts.

Michel Baijot, CEO

Dr Baijot is a life sciences executive with 25 years’ experience of building biologics businesses, having contributed in the areas of strategy, licensing, M&A and technology transfer. Dr Baijot previously served as executive director at the Serum Institute of India, head of Cipla Global Vaccines and as chief business officer at Crucell during and after its acquisition by Janssen, a Johnson & Johnson company. Dr Baijot has also been vice president, worldwide strategic alliances and business development at GlaxoSmithKline Biologicals, Rixensart, and vice president, business development at Innogenetics. Dr Baijot has served as chairman of the Belgium Biotech Association for five years and holds board director positions at IRE-Elit, the radiopharmaceuticals division of IRE, (Institut des radioéléments) and OncoRadiomics.

Yves Désiront

Mr Désiront is the managing partner of a private equity fund based in Luxembourg and has been acting group CFO of BGP Investment since October 2014. Mr Désiront was previously group CFO of Orco Property Group and prior to this held various positions at Groupe Bruxelles Lambert and Générale de Banque. Mr Désiront has a master’s degree as Ingénieur Commercial in Business Administration and Technology Interface.

Exhibit 1: Financial summary

 

 

 

(€000)

2017

2018e

2019e

2020e

2021e

2022e

Year end 31 December

 

 

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

INCOME STATEMENT

 

 

 

 

 

 

 

 

Revenue

 

 

 

0

0

0

0

0

12,748

Cost of Sales

 

 

 

0

0

0

0

0

0

Gross Profit

 

 

 

0

0

0

0

0

12,748

General and Administrative Expenses

 

(1,676)

(2,547)

(2,522)

(2,497)

(2,472)

(2,447)

Research and Development Expenses

 

(10,903)

(12,000)

(8,000)

(3,480)

(2,000)

0

Other Operating Income

 

 

604

789

829

870

914

959

Reported operating profit

 

 

(11,975)

(13,758)

(9,693)

(5,106)

(3,558)

11,261

Net Interest

 

 

 

(9)

(40)

159

(161)

(289)

(295)

Profit before tax (as reported)

 

 

(11,984)

(13,798)

(9,534)

(5,267)

(3,846)

10,966

Reported tax

 

 

 

(2)

(1)

2

1,580

1,154

(3,290)

Profit after tax (reported)

 

 

(11,986)

(13,799)

(9,532)

(3,687)

(2,692)

7,676

Minority interests

 

 

0

0

0

0

0

0

Net income (reported)

 

 

(11,986)

(13,799)

(9,532)

(3,687)

(2,692)

7,676

 

 

 

 

 

 

 

 

 

 

Basic average number of shares outstanding (m)

 

12,806

16,704

18,434

18,434

18,434

18,434

EPS - basic, as reported (€)

 

(0.94)

(0.83)

(0.52)

(0.20)

(0.15)

0.42

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

 

 

 

 

 

 

Non Current Assets

 

 

1,837

2,018

2,022

1,940

1,850

1,926

Property Plant and equipment, net

 

691

703

707

625

535

611

Other intangible assets

 

 

0

0

0

0

0

0

Other Non Current Assets

 

 

1,146

1,315

1,315

1,315

1,315

1,315

Current Assets

 

 

2,448

8,753

16,257

27,796

24,977

32,285

Cash and cash equivalents

 

 

2,126

8,500

16,004

27,543

24,724

32,032

Accounts receivable

 

 

0

0

0

0

0

0

Inventories

 

 

 

0

0

0

0

0

0

Other current assets

 

 

322

253

253

253

253

253

Current Liabilities

 

 

2,654

4,196

3,359

2,703

2,486

2,193

Accounts payable

 

 

1,264

2,354

1,517

861

644

351

Short term debt and borrowings

 

34

38

38

38

38

38

Other current liabilities

 

 

1,356

1,804

1,804

1,804

1,804

1,804

Non Current Liabilities

 

 

432

446

9,446

16,446

16,446

16,446

Loans and borrowings

 

 

432

446

9,446

16,446

16,446

16,446

Other non-current liabilities

 

 

0

0

0

0

0

0

Equity

 

 

 

1,199

5,625

3,294

1,407

(1,286)

6,390

Common stock / Capital

 

 

9,989

13,125

13,125

13,125

13,125

13,125

Additional paid-in capital / Share premium

 

21,957

26,457

24,126

22,239

19,546

27,222

Other reserves and surplus

 

 

(28,645)

(33,957)

(33,957)

(33,957)

(33,957)

(33,957)

Other Equity

 

 

 

(2,102)

0

0

0

0

0

CASH FLOW

 

 

 

 

 

 

 

 

 

Cash Flow from Operations

 

 

 

 

 

 

 

 

Net income (loss)

 

 

(11,986)

(13,799)

(9,532)

(3,687)

(2,692)

7,676

Depreciation and Amortization

 

 

205

176

189

184

162

149

Interest income/expense

 

 

9

40

(159)

161

289

295

Stock-based compensation

 

 

54

0

0

0

0

0

Non Cash Adjustments

 

 

(492)

0

0

0

0

0

(Increase) decrease in inventories

 

0

0

0

0

0

0

(Increase) decrease in trade receivables

 

74

0

0

0

0

0

(Increase) decrease in other current assets

 

(112)

69

0

0

0

0

Increase (decrease) in trade payables

 

(586)

2,180

(837)

(656)

(217)

(292)

Net cash used in Operating activities

 

(12,834)

(11,334)

(10,339)

(3,998)

(2,460)

7,828

Cash Flow from Investing

 

 

 

 

 

 

 

 

Purchases of fixed assets

 

 

(161)

(275)

(194)

(102)

(71)

(225)

Other Investing Activities

 

 

0

0

0

0

0

0

Net cash used in Investing activities

 

(161)

(275)

(194)

(102)

(71)

(225)

Cash Flow from Financing

 

 

 

 

 

 

 

 

Change in Debt

 

 

0

0

9,000

7,000

0

0

Change in Capital Stock

 

 

0

16,900

7,200

1,800

0

0

Interest paid

 

 

 

(10)

(42)

(24)

(474)

(824)

(824)

Other Financing Activities

 

 

1,743

2

183

313

536

529

Net cash used in Financing activities

 

1,733

16,860

16,359

8,639

(289)

(295)

Net Changes in Cash and Cash Equivalent

 

(11,262)

5,251

5,827

4,539

(2,819)

7,308

Net cash (debt) at the beginning of the period

 

12,968

1,694

8,054

6,558

11,097

8,278

Net cash (debt) at the end of the period

 

1,694

8,054

6,558

11,097

8,278

15,586

Source: ASIT Biotech, Edison Investment Management


General disclaimer and copyright

This report has been commissioned by ASIT biotech and prepared and issued by Edison, in consideration of a fee payable by ASIT biotech. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the Edison analyst at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2019 Edison Investment Research Limited (Edison). All rights reserved FTSE International Limited (“FTSE”) © FTSE 2019. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Myonlineadvisers Pty Ltd who holds an Australian Financial Services Licence (Number: 427484). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

Neither this document and associated email (together, the "Communication") constitutes or form part of any offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities, nor shall it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. Any decision to purchase shares in the Company in the proposed placing should be made solely on the basis of the information to be contained in the admission document to be published in connection therewith.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document (nor will such persons be able to purchase shares in the placing).

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

The Investment Research is a publication distributed in the United States by Edison Investment Research, Inc. Edison Investment Research, Inc. is registered as an investment adviser with the Securities and Exchange Commission. Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a) (11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

This report has been commissioned by ASIT biotech and prepared and issued by Edison, in consideration of a fee payable by ASIT biotech. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the Edison analyst at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2019 Edison Investment Research Limited (Edison). All rights reserved FTSE International Limited (“FTSE”) © FTSE 2019. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Myonlineadvisers Pty Ltd who holds an Australian Financial Services Licence (Number: 427484). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

Neither this document and associated email (together, the "Communication") constitutes or form part of any offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities, nor shall it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. Any decision to purchase shares in the Company in the proposed placing should be made solely on the basis of the information to be contained in the admission document to be published in connection therewith.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document (nor will such persons be able to purchase shares in the placing).

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

The Investment Research is a publication distributed in the United States by Edison Investment Research, Inc. Edison Investment Research, Inc. is registered as an investment adviser with the Securities and Exchange Commission. Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a) (11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Share this with friends and colleagues