SLM Solutions Group AG concludes financing arrangement and plans issuance of convertible bond with preemptive rights for existing shareholders and holders of its 2017/2022 Convertible Bond

Lübeck, 26 March 2020 – SLM Solutions Group AG (ISIN DE000A111338 (shares) and DE000A2GSF58 (convertible bond 2017/2022)), hereinafter “SLM” or the “Company”) today decided that it plans to raise total financing of approx. 60 EUR million in form of convertible bonds, bolstering the Company’s liquidity position and creating additional financial flexibility to support its development projects.

The instrument is a 3-tranched convertible bond with tranches two and three becoming available to SLM once certain conditions precedent are met, which mainly refer to the achievement of the future growth targets of SLM. All existing shareholders and existing convertible bond holders will receive subscription rights for Tranche I of the new convertible bond. Holders of this Tranche I will subsequently have the right to subscribe to Tranche II and III. The new Convertible Bonds will be issued at 100% of its nominal value, will have a coupon of 2% per year and a maturity until 30 September 2026.

The new convertible bond is fully backstopped by our largest shareholder, an entity owned and controlled by funds advised by Elliott Advisors (UK) Limited (“Elliott”). For this purpose, the Company concluded a financing agreement with Elliott. The financing underpins Elliott’s continued commitment to the Company and conviction in SLM’s technology.

Meddah Hadjar, CEO of SLM, commented, “In these uncertain times, we are very pleased that we have the ability to raise substantial financing backed by the confidence and support of our largest shareholder. SLM’s strengthened financial position will allow us to continue to increase our leadership position in the additive manufacturing market.”

Further details of the Subscription Offer will be announced by SLM in due time prior to the start of the subscription period in June 2020. The New Convertible Bonds will be offered only on the basis of a securities prospectus to be approved by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht) and to be published by the Company, which will be made available on the Company’s website at www.slm-solutions.com.

This release is does not constitute an offer to purchase or subscribe for any securities nor a solicitation to submit an offer to purchase or subscribe for any securities in the Federal Republic of Germany, Japan, Australia, Canada or the United States of America or any other jurisdiction.

The convertible bonds and the subscription rights referred to herein have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”) or with any securities regulatory authority of any state or other jurisdiction in the United States. The convertible bonds and the subscription rights referred to herein may only be sold or offered in the United States pursuant to an exemption from registration under the Securities Act and the securities regulations of any state or other jurisdiction in the United States. The same applies for an offer, a sale or any distribution to any U.S. person within the meaning of the Securities Act.

About the company:

Lübeck-based SLM Solutions Group AG is a leading provider of metal-based additive manufacturing technology. The company's shares are traded in the Prime Standard of the Frankfurt Stock Exchange. SLM Solutions focuses on the development, assembly and sale of machines and integrated system solutions in the field of selective laser melting. SLM Solutions currently employs over 400 members of staff in Germany, Canada, China, France, India, Italy, Russia, Singapore and the USA. The products are utilised worldwide by customers in particular from the aerospace, energy, healthcare and automotive industries.