Inside information under Article 17 of Regulation (EU) 596/2014 (Public disclosure)

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Gilching, October 28, 2020 – Mynaric (Frankfurt Stock Exchange: M0Y, ISIN: DE000A0JCY11), a leader in the design, development and manufacture of laser communication products for high-speed connectivity in air and space, has successfully raised gross proceeds of EUR 52.8 million via a capital increase from authorized capital. The amount was already fully placed during a pre-placement with institutional investors while full allocation was still conditional on the completion of a subscription rights offering to existing shareholders which ended on Monday.

Today’s announcement of the EUR 52.8 million capital increase gross proceeds brings Mynaric’s total funding to date to more than EUR 110 million which was and is being invested to industrialize laser communication products for commercial and governmental connectivity networks.

“We are now starting to deliver first products into the hands of customers and are winning contracts for initial deployments of industrialized laser communication technology. Developments being driven by the commercial sector and, more recently and forcefully, by the government sector are heralding the industrial age of laser communication. The company that can meet the demand from these initial players, with products specifically designed for mass deployment, is the company that is best placed to lead this hugely dynamic and ever-growing market. With today’s announced funding and the recently won contracts we have all reasons to believe we are that company.”

Bulent Altan, CEO, Mynaric

Mynaric has recently announced contract wins to supply its laser communication products to two US government programs. The net proceeds of the capital increase will be used to build on these wins and support and consolidate Mynaric’s leading position in the market, specifically:

  • To prepare for large-volume operational product deployment in order to secure its market position permanently. This entails moving towards production capabilities to be able to assemble triple digit units per year and implementing flexibility to scale output as needed by the market. Further, this includes work towards the development of second generation product iterations to include optimizations in the context of industrialization of laser communications.
  • To win market share by leveraging existing products. Mynaric will expand its business development activities internationally to win additional lead customers, build-up support and maintenance capabilities to transition first customers to advocates, and shorten delivery times to enable new customers to validate the products at short notice.
  • To expand Mynaric’s access to the key North American market. Increased US operations will enable on-premise and off-premise product demonstrations, mainly for the purpose of business development, and will create capabilities to provide customer support and handle sensitive data domestically.

About Mynaric

Mynaric is a manufacturer of laser communication technologies used to enable communication and surveillance applications in air and space. Its laser data transmission products include ground and flight terminals, which allow very large quantities of data to be sent wirelessly and securely over long distances between aircraft, autonomous drones, high-altitude platforms, satellites and the ground.

Globally, the need for fast and secure connectivity is advancing inexorably. Data networks are today largely based on infrastructure on the ground, which cannot be expanded arbitrarily for legal, economic or practical reasons. The future therefore calls for an expansion of the existing network infrastructure into air and space. With its laser data transmission products Mynaric is positioned as a pioneer in this growth market.

For more information see: www.mynaric.com

Important information

This announcement does not contain or constitute an offer to sell nor a solicitation to buy or subscribe for securities.

This announcement is not a prospectus. Potential investors should not purchase or subscribe for any securities referred to in this announcement except on the basis of the information contained in the prospectus of the Company (including any supplements thereto) which has been approved by the German federal financial services supervisory authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) and immediately published thereafter. Copies of such prospectus are available free of charge from Mynaric AG, as well as, for viewing in electronic form, on the website of the Company.

This announcement is not an offer of securities for sale in the United States of America (the “United States”). Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Any public offering of securities to be made in the United States would be made by means of a prospectus that could be obtained from the Company and that would contain detailed information about the Company and its management, as well as the financial statements of the Company. There will be no public offer of the securities in the United States.

In the United Kingdom, this information is directed at and/or for distribution only to (i) investment professionals falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”), or (ii) high net worth companies falling within article 49(2)(a) to (d) of the Order (all such persons are collectively referred to herein as “relevant persons”). The securities are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this information or any of its contents.

In member states of the European Economic Area (“EEA”), in which the Regulation (EU) 2017/1129 as amended (the “Prospectus Regulation”) is in effect other than Germany and the United Kingdom (the “Relevant Member States”), this announcement, and any offer following it, is only addressed to persons who are ‘qualified investors’ within the meaning of Article 2(e) of the Prospectus Regulation (“Qualified Investors”). It is assumed that each person in the Relevant Member States who acquires or is offered securities as part of an offering (an “Investor”) has represented and agreed that such person is a Qualified Investor; that securities purchased by such person as part of the offering are not being purchased for any person in the EEA other than a Qualified Investor or persons in Germany, the United Kingdom or another Relevant Member State with comparable legal provisions, with respect to whom the Investor may make decisions at its own discretion; and that the securities would not be purchased for offer or re-sale in the EEA, if this would lead to Mynaric AG or any of its affiliates being required to publish a prospectus under Article 3 of the Prospectus Regulation.

Subject to certain exceptions, the securities referred to herein may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan.

Some of the information in this announcement may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company. You can identify forward looking statements by terms such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “will,” “could,” “may” or “might,” or, in each case, the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with our industry, as well as many other risks specifically related to the Company and its operations.