Fermentalg : Shareholders approve the partnership with Japanese firm DIC Corporation to develop a new generation of natural food colorings

Press release

This press release does not constitute or form part of an offer or invitation to buy or sell securities in the United States or any other country.

• €5m investment by DIC Corporation in Fermentalg in the form of convertible bonds at €5 per bond
• 3-year joint development programme relating to two microalgae-derived natural pigments, one of which is phycocyanin (natural blue pigment)
• Appointment of DIC Corporation to the Board of Directors of Fermentalg as an Observer (non-voting director)

Libourne – 20 October 2017 – Fermentalg (Euronext – FALG), a French leader in microalgae for nutrition and health, has announced the approval by its shareholders' general meeting held on October 20,2017, of the €5 million investment to be made by DIC Corporation as part of the global partnership executed on September 11, 2017 between Fermentalg and the Japanese major player in the global chemical industry (Tokyo Stock Exchange – 4631)[1].

This global partnership targets the fast-growing market for natural alternatives to artificial food colorings. The partnership will bring together Fermentalg's unique microalgae strains bank and its integrated biotechnology platform with DIC Corporation's significant applied, industrial and commercial research resources.

Philippe Lavielle, Chairman and CEO of Fermentalg, said: "We are very proud to have a major industrial partner such as DIC Corporation. This alliance, which has been very widely approved by our shareholders, will enable us to accelerate our deployment in health and nutrition areas where we have strong ambitions for microalgae-derived natural pigments."

Three-year joint development programme

On 1 October 2017, Fermentalg and DIC Corporation initiated a three-year joint development agreement (JDA) dedicated to two microalgae-derived natural pigments, including an innovative phycocyanin, the main blue pigment used in natural food coloring (for confectionery, ice cream, etc.) as an alternative to artificial food coloring.

€5 million convertible bond issue reserved for DIC Corporation

DIC Corporation will also subscribe, by November 30, 2017, in the context of a reserved issuance, one (1) million convertible bonds into ordinary shares of a unitary amount of €5, representing a total nominal amount of €5 million. The convertible bonds to be issued by Fermentalg will bear annual interest of 5% until maturity, namely for a period of three years. The bonds may be converted into new shares at any time, at DIC Corporation's discretion and at a price of € 5.00 per share[2].

The shareholders have also approved the appointment of DIC Corporation to the Board of Directors of Fermentalg as an Observer (non-voting director).

About Fermentalg

Fermentalg is a French leader in microalgae. Based in Libourne (Nouvelle Aquitaine), the company produces oils, pigments and proteins through the bio-industrial exploitation of microalgae. Its primary markets are the human nutrition and animal feed sectors as well as the health industry. Fermentalg shares are listed on Euronext in Paris (FR0011271600 - FALG). For more information, visit the Fermentalg website at: www.fermentalg.com

Important information

No documents or information regarding this operation or Fermentalg S.A. may be disseminated to the public in any country in which registration or approval is required. No procedures have been undertaken (or will be undertaken) in any country in which such procedures would be required (other than France). The issue, subscription or purchase of Fermentalg S.A. shares or preferential subscription rights may be subject to specific legal or regulatory restrictions in certain countries. Fermentalg S.A. is not liable for violations of these restrictions by any persons.

This press release is not a prospectus within the meaning of Directive 2003/71/EC of the European Parliament and the Council of November 4, 2003 as amended, notably by Directive 2010/73/EU insofar as this Directive has been transposed by each member state of the European Economic Area (the "Directive Prospectus").

With respect to member states of the European Economic Area other than France that have transposed the Prospectus Directive, (the "concerned member state"), no action has been taken or will be taken to offer securities that would require the publication of a prospectus in any member state other than France. Accordingly, new shares in Fermentalg S.A. may not and will not be offered in any concerned member state other than France except (a) to qualified investors as defined in the Prospectus Directive; or (b) in other cases where Fermentalg S.A. is not required to publish a prospectus under Article 3(2) of the Prospectus Directive.

The dissemination of this press release has neither been carried out nor approved by an authorized person within the meaning of Article 21(1) of the Financial Services and Markets Act 2000. As a result, it is addressed to and intended solely for (i) persons located outside the United Kingdom; (ii) investment services professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended and hereinafter the "Order"); or (iii) firms with substantial equity ("high net worth entities") or any other persons to whom it may be addressed in accordance with Articles 49.2 (a) to (d) of the Financial Promotion Order (the persons mentioned in paragraphs (i), (ii), and (iii) collectively being designated as "Qualified Persons"). The shares are intended solely for Qualified Persons and any invitation, offer or agreement concerning the subscription, purchase or acquisition of shares can only be addressed or entered into with Qualified Persons. Any person who is not a Qualified Person must refrain from using or relying on this press release and the information contained herein. This press release does not constitute a prospectus that has been approved by the Financial Services Authority or any other UK regulatory authority within the meaning of Section 85 of the Financial Services and Markets Act 2000.

This press release does not constitute an offer to sell securities or a solicitation to purchase or subscribe for securities in the United States or any other country. Securities may only be offered, subscribed to or sold in the United States where they have been registered within the meaning of the revised U.S. Securities Act of 1933 (the "U.S. Securities Act") or where they are exempt from registration, or as part of an operation that does not require registration. Fermentalg S.A. securities have not been and will not be registered in accordance with the U.S. Securities Act, and Fermentalg S.A. does not intend to initiate a public offering of its securities in the United States.

The dissemination of this press release may constitute a violation of applicable laws in certain countries.

The information contained herein does not constitute an offer of securities in the United States, Canada, Australia or Japan.