2020

18.02.2020 – Leclanché S.A.

Leclanché Secures Convertible Loan Facility of up to CHF 39 Million with Yorkville Advisors and additional Convertible Loan Facility of CHF 25 Million with FEFAM

Leclanché SA / Key word(s): Financing/Agreement
Leclanché Secures Convertible Loan Facility of up to CHF 39 Million with
Yorkville Advisors and additional Convertible Loan Facility of CHF 25
Million with FEFAM

18-Feb-2020 / 06:59 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.

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Leclanché Secures Convertible Loan Facility of up to CHF 39 Million with
Yorkville Advisors and additional Convertible Loan Facility of CHF 25
Million with FEFAM

- Initial CHF 2.9 million tranche under the Convertible Loan Facility with
Yorkville Advisors will provide financing for operations and expansion;

- Company confirms separate investment of CHF 25 million by FEFAM [1], its
largest shareholder.


YVERDON-LES-BAINS, Switzerland and MOUNTAINSIDE, N.J., 18th February 2020 -
Leclanché SA (SIX: LECN), one of the world's leading energy storage
companies, has signed an agreement with Yorkville Advisors Global, LP, a US
New Jersey-based investment firm offering debt and equity financing to
global, small and micro-cap companies, providing for an unsecured US dollars
convertible loan facility with a maximum ceiling of USD 40 million (approx.
CHF 39 million). The initial proceeds will be used for Company operations
and expansion.

The terms of the agreement with Yorkville Advisors allows it to convert each
loan note into Leclanché shares based on the prevailing Investor's Spot Rate
of Exchange at the time of conversion and divided by the prevailing share
price at time of conversion. The agreement calls for the drawdowns of the
facility within a two-year period. The first tranche of the loan facility is
CHF 2.9 million which has already been expended. Additional drawdowns are
expected to be in the amount of CHF 1.4 million or an amount determined by
both Leclanché and Yorkville Advisors. Any such additional drawdowns by the
Company are conditional upon, amongst other, prior loans having been
converted into shares and the shares having been traded out by Yorkville
Advisors at its sole discretion as well as certain share price and trading
volume thresholds being met prior to any additional request for drawdown.
Loans drawn down do not carry interest, but trigger certain fees and the
allocation of certain warrants to Yorkville Advisors with an initial
exercise price of 120% of the closing price on the day prior to the date on
which a loan is made. Accordingly, the warrants provide a means of
compensation in a scenario in which the share price increases considerably.

Anil Srivastava, CEO of Leclanché, said: "We are pleased to partner with
Yorkville Advisors in this innovative financing arrangement that achieves
several key objectives and supports the Company's previously announced
growth plan. Not only are we securing important short-term financing to fund
current operations and growth activities, but we are also taking on a
financial partner with tremendous expertise in helping to build liquidity
for companies' listed shares. Our agreement provides built-in incentives for
all parties to benefit handsomely from this transaction."

David Gonzalez, Partner and General Counsel for Yorkville Advisors, said:
"We are delighted to team-up with Leclanché to help it address its financing
needs. What Leclanché has accomplished as a world leader in energy storage
is impressive. We believe in the company's going-forward business strategy
and we recognize its tremendous long-term growth potential. At the same
time, we understand very well the financial issues that growth companies
like Leclanché face as a small cap company with challenging liquidity
issues. We believe that the convertible loan facility that we have arranged
for the company will enable both parties to achieve their intended ROIs."

FEFAM, Leclanché's majority shareholder, has agreed to provide Leclanché
with a CHF 25 million working capital financing convertible facility with a
fixed draw down schedule. This additional financing from a long-time
supportive shareholder of Leclanché brings the total growth funding raised
in 2020 to up to approx. CHF 64 million.

Mr. Srivastava said: "This additional funding now in place will support the
implementation of our high-growth business plan and, together with the other
financing projects the Company is working on, will help finance the tripling
of our manufacturing cell production capacity in Germany to 3 million cells
per annum to support delivery of the large order book we have in Leclanché's
eTransport Business. We expect to share more details of the business plan
and funding in the coming weeks."

For more information, write to info@leclanche.com or visit www.leclanche.com.

* * * * *

About Leclanché
Headquartered in Switzerland, Leclanché SA is a leading provider of
high-quality energy storage solutions designed to accelerate our progress
towards a clean energy future. Leclanché's history and heritage is rooted in
over 100 years of battery and energy storage innovation and the Company is a
trusted provider of energy storage solutions globally. This coupled with the
Company's culture of German engineering and Swiss precision and quality,
continues to make Leclanché the partner of choice for both disruptors,
established companies and governments who are pioneering positive changes in
how energy is produced, distributed and consumed around the world. The
energy transition is being driven primarily by changes in the management of
our electricity networks and the electrification of transport, and these two
end markets form the backbone of our strategy and business model. Leclanché
is at the heart of the convergence of the electrification of transport and
the changes in the distribution network. Leclanché is the only listed pure
play energy storage company in the world, organised along three business
units: stationary storage solutions, e-Transport solutions and specialty
batteries systems. Leclanché is listed on the Swiss Stock Exchange (SIX:
LECN).

SIX Swiss Exchange: ticker symbol LECN | ISIN CH 011 030 311 9

About Yorkville Advisors
Based in Mountainside, New Jersey, Yorkville Advisors is an experienced
investment firm that focuses on driving shareholder value by providing
growth and acquisition capital to small-cap and micro-cap issuers globally.
With a significant balance sheet and a broad investment mandate across
sectors and geographies, Yorkville Advisors is often the sole investor in a
capital raise, which allows for a controlled and disciplined exit strategy.

The Yorkville Advisors' partners have decades of experience structuring
micro and small-cap investments and understand and appreciate the volatility
inherent to the space. The firm tailors its investments to the unique needs
of each issuer working directly with management to implement the proper
financing solution. Since its inception in 2001, Yorkville Advisors has
completed over 700 company investments totalling more than $US 4B in value
in over 20 countries.

Disclaimer
This press release contains certain forward-looking statements relating to
Leclanché's business, which can be identified by terminology such as
"strategic", "proposes", "to introduce", "will", "planned", "expected",
"commitment", "expects", "set", "preparing", "plans", "estimates", "aims",
"would", "potential", "awaiting", "estimated", "proposal", or similar
expressions, or by expressed or implied discussions regarding the ramp up of
Leclanché's production capacity, potential applications for existing
products, or regarding potential future revenues from any such products, or
potential future sales or earnings of Leclanché or any of its business
units. You should not place undue reliance on these statements. Such
forward-looking statements reflect the current views of Leclanché regarding
future events, and involve known and unknown risks, uncertainties and other
factors that may cause actual results to be materially different from any
future results, performance or achievements expressed or implied by such
statements. There can be no guarantee that Leclanché's products will achieve
any particular revenue levels. Nor can there be any guarantee that
Leclanché, or any of the business units, will achieve any particular
financial results.

   Contacts
   Media contacts:
   Europe/global:                          North America:
   Desiree Maghoo T: +44 (0) 7775 522      Rick Anderson T:
   740 E-mail:                             +1-718-986-1596 Henry Feintuch
   dmaghoo@questorconsulting.com           T: +1-212-808-4901 E-mail:
                                           [1]leclanche@feintuchpr.com  1.
                                           mailto:leclanche@feintuchpr.com
   Switzerland: Annick Bidiville T: +41    Germany: Christoph Miller T:
   (0) 79 940 74 24 E-Mail:                +49 (0) 711 947 670 E-mail:
   [1]annick.bidiville@leclanche.com       [1]christoph.miller@sympra.de
   1.                                      1.
   mailto:annick.bidiville@leclanche.co    mailto:christoph.miller@sympra.
   m                                       de
   Investor Contacts: Anil Srivastava /
   Hubert Angleys T: +41 (0) 24 424 65
   00 E-mail:
   [1]invest.leclanche@leclanche.com
   1.
   mailto:invest.leclanche@leclanche.co
   m
[1] FEFAM means: AM INVESTMENT SCA, SICAV-SIF - Illiquid 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".


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