CARMAT announced that it has reached an agreement in principle with the European Investment Bank (EIB) on the terms of repayment of the loan entered into with the latter in December 2018, to extend its repayment schedule and limit the cash flows associated with its repayment. This agreement in principle covers all three tranches of the loan and, should it be implemented, would allow CARMAT, to avoid having to repay this loan before July 31, 2026. As a reminder, the first tranche of the loan (total amount of c. ?15 million in principal and interest) was initially due to be repaid on January 31, 2024, and the second and third tranches in 2025 and 2026, respectively.

This agreement in principle is not binding, its implementation requiring the negotiation and execution of a final agreement by the parties. This execution is subject to final approval by the EIB, and to reaching a rescheduling agreement regarding the State-Guaranteed Loans entered into by the Company with BNP Paribas and Bpifrance, for a total of ?10 million in principal (the ?Conditions Precedent?). The Company hopes to transform this agreement in principle into a final agreement by the end of the first quarter of 2024, it being specified that ?

in order to facilitate these discussions ? the Company has been granted a standstill regarding the principal of these loans by the EIB, BNP Paribas and Bpifrance until February 22, 2024. Given this agreement and its cash position, the Company can finance its activities, according to its current business plan, until the end of January 2024.

Under the terms of a contract entered into on December 17, 2018, the Company took out a loan with the EIB for ?30 million paid in 3 tranches of ?10 million on January 31, 2019 (the ?first tranche?), May 4, 2020 (the ?second tranche?) and October 29, 2021 (the ?third tranche? and, with the other tranches, the ?tranches?), each Tranche (principal plus accrued interest) to be repaid 5 years after the Company received it. Under the terms of an agreement in principle reached with the EIB, and subject to the lifting of the aforementioned Conditions Precedent, the maturity of the various tranches of the loan entered into with the EIB would be extended as follows: Tranche 1: maturity extended from January 31, 2024, to July 31, 2026, Tranche 2: maturity extended from May 4, 2025, to August 4, 2027, Tranche 3: maturity extended from October 29, 2026, to October 29, 2028.

The amounts borrowed would continue to bear interest until their new maturity dates at fixed rates indicated in the initial contract. Moreover, the initial royalty agreement associated with this loan would be modified to begin with respect to 2024 sales and for a duration of 15 years (versus a duration of 13 years in the initial contract). The other terms and conditions of the loan would remain, in substance, unchanged (this would notably be the case regarding the events of default or regarding early repayment clauses).

The loan would remain unsecured. Given this agreement, the amounts (principal and interest) payable at maturity date regarding each of the tranches would be approximately ?18 million at the end of July 2026 for the first tranche, ?17 million in early August 2027 for the second tranche and ?13 million at the end of October 2028 for the third tranche (namely an aggregate of ?48m, including principal and interests, to be reimbursed).