Bond issue in March, insolvency in June: Greentech company Solarnative GmbH
files for insolvency at record speed - law firm Schirp und Partner examines
claims against the underwriters One Square Finan

Issuer: SCHIRP & PARTNER Rechtsanwälte mbB / Key word(s): Bond/Insolvency
Bond issue in March, insolvency in June: Greentech company Solarnative GmbH
files for insolvency at record speed - law firm Schirp und Partner examines
claims against the underwriters One Square Finan

08.07.2024 / 10:21 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Bond issue in March, insolvency in June: Greentech company Solarnative GmbH
files for insolvency at record speed - law firm Schirp und Partner examines
claims against the underwriters One Square Financial Engineers and Heuking

Only three months after the start of the subscription of its bond (WKN:
A38251 | ISIN: DE000A382517) on 19 March 2024, the German greentech company
Solarnative GmbH filed for insolvency. This rapid transition from issue to
insolvency filing has caused consternation in the German capital market and
raises serious questions about the company's organisational and financial
structures, but also about the diligence of the underwriters One Square
Financial Engineers and Heuking.

The bond, which was offered with a supposedly attractive interest rate of up
to 12.25 per cent p.a., was only able to place a volume of EUR 1.24 million
on the value date - much to the disappointment of the management. Dr Julian
Mattheis, Managing Director of Solarnative, explained in an interview with
AnleihenFinder on 20 March that the aim of the issue was to use the funds to
scale production and strengthen liquidity reserves in order to significantly
increase production capacity. He emphasised that the repayments of the bond
and the interest payments were secured by the initial use of part of the
bond funds as a liquidity cushion and were to be covered by operating cash
flows from next year onwards. In addition, further capital increases were
planned in order to strengthen the company's equity position.

Lawyer Dr Wolfgang Schirp, who represents aggrieved investors in this bond:
"The Solarnative prospectus is strangely evasive on several points. Although
the current financing requirement is stated as 13 million euros, it is not
stated whether this financing requirement can be covered by the bond or even
exceeds this amount. The company has also failed to define a minimum
placement amount. In view of Solarnative's obviously acute existential
crisis, this would have been necessary to prevent the money of small
investors from being lost from the very first second." Dr Schirp continued:
"It is also striking that this is not the first issue that was structured
and accompanied by One Square Financial Engineers and Heuking Kühn Lüer
Wojtek and then promptly headed for insolvency. The two and a half months
between the end of the issue and the insolvency of Solarnative represent a
sad "speed record" in the destruction of investors' money. However, the
issues structured by One Square Financial Engineers and Heuking for the
medical technology companies Belano Medical AG (WKN: A3H2UW | ISIN:
DE000A3H2UW2) and Pentracor GmbH (WKN: A289XB | ISIN: DE000A289XB9) as well
as the water technology provider Blueplanet Investments AG (WKN: A3H3F7 |
ISIN: DE000A3H3F75) went into insolvency without a sound after issuing their
bonds. These repeated events indicate that there is more to it than just the
sudden failure of the issuing companies' business ideas."

Dr. Schirp explains: "In general, we are very sceptical when companies that
generate hardly any sales attract investors with very ambitious plans that
assume sudden and explosive increases in sales and profits (so-called
"hockey stick" plans). If you want to gain investor confidence, you should
at least have demonstrated to some extent what you can actually do."

The conclusion: "We generally need more care and responsibility on the part
of the issuing companies when issuing bonds/convertible bonds. It is
essential to define a minimum placement amount for weak issuers, which must
be cancelled if the placement is not reached. This is because if only a
small part of the planned issue volume can be achieved, the plans and
investments can generally not be realised. Investors' money is then thrown
into a bottomless pit from the very first second. At Solarnative in
particular, we are calling on other aggrieved parties to get in touch with
us, because in this drastic case we want to hold the issuing managers
accountable."

For further information, please contact Dr Wolfgang Schirp, Schirp
Schmidt-Morsbach Rechtsanwälte PartG mbB, Leipziger Platz 9, D - 10117
Berlin, Tel. 0049-30-3276170, mail schirp@schirp.com, URL: www.schirp.com


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