CybAero signs agreement with Bracknor for up to USD 5.25 million

CybAero and Bracknor Investment Group has now signed an agreement regarding a financing solution of up to USD 5.25 million in the form of seven convertible loans, the first three loans each of USD 850 000, the fourth of USD 750 000 and the last three each of USD 650 000.

CybAero has received a bridge loan of USD 850 000 from Bracknor. The loan will be set off against Bracknor’s subscription for the first convertible loan after the upcoming extraordinary shareholders’ meeting.

The convertible loans will have a mandatory conversion at the latest 12 months from issuance. The conversion rate will for the first three loans will be 88% of the lowest of the daily volume-weighted average prices for the company’s shares during a 15 trading day period preceding the day for the demand for conversion of the loan. For the last four loans the conversion rate will be 90%.

Each convertible loan will be issued together with a warrant package which entitles to subscribe for additional shares for an amount corresponding to 30% of the nominal value of the convertible loan which they are issued together with. The subscription price shall be 125% of the lowest of the daily volume-weighted average prices for the company’s shares during the 5 trading day period immediately preceding the request to issue a new convertible loan.

Subversive Capital has agreed to loan Bracknor a fixed amount of shares. In return Subversive has according to the agreement been granted the right to participate for an additional 10% of each tranche for the entire commitment period, pending approval from the upcoming extraordinary meeting.

The board of directors will call for an extraordinary meeting with the shareholders in order to decide upon an issue of convertible loans and warrants and an authorization for the Board to issue shares, convertible loans and warrants.

Pierre Vannineuse, Bracknor's founder and CEO commented: "We are pleased to close our first investment in the aeronautical industry with Cybaero, the Sweden-based and Nordic leader in the production of remotely piloted military and civilian aircraft systems. Bracknor intends to further diversify its longterm support to the ever growing industry of UAVs."

Michael Auerbach, CybAero’s Chairman said, “We are excited to be working with Bracknor and look forward to a long and constructive relationship as CybAero continues to pursue a position as the market leader in both services and sales of VTOL remotely piloted aircraft.”

About Bracknor

Bracknor is a specialized investment fund based in Dubai (UAE) acting as a family office which is mandated to invest globally in SMEs that bears unique competitive advantages and true potential, providing them with paramount working capital or growth capital needed to foster and ignite their growth.

Contact:
Michael Auerbach, Chairman of the Board

Telephone: 013-465 29 00

Email: ir@cybaero.se

This information is information that CybAero AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 8:40 CET on July 24 2017.

Web:  www.cybaero.se           Videos: www.youtube.com/cybaero

About CybAero
CybAero develops and manufactures Remotely Piloted Aircraft Systems (RPAS) for safer and more effective aerial operations in various environments, including those hazardous in nature. The company has made a great international impact with its APID One helicopter, which can be adapted for both military and civilian applications such as coastal and border surveillance, search and rescue missions, and mapping. CybAero’s head office is located in the Mjärdevi Science Park in Linköping, Sweden. The company has around 50 employees and has been listed on the Nasdaq First North since 2007. FNCA Sweden AB is the company's certified adviser.

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