AgroGeneration brought proceedings against EGHO over issuance agreement

AgroGeneration brought proceedings against the European High Growth Opportunities Securitization Fund (EGHO) before the Paris Commercial Court following a contractual dispute between the two parties.

AgroGeneration signed a financing agreement with the European High Growth Opportunities Securitization Fund on June 6, 2018, for the issuance of bonds redeemable in new or existing shares (ORNANE) for a maximum nominal value of EUR 20 million. Drawdowns totalling EUR 4 million were made under this agreement before the program was suspended.

By the company's message, without prior service of formal notice, European High Growth Opportunities sent an email notification of default under the issuance agreement requesting termination of the agreement and redemption, in cash, of all ORNANE bonds issued and not converted, for a total amount of EUR 1.9 million. AgroGeneration says it considers this request to be totally unjustified.

"European High Growth Opportunities alleges that the contractual provisions of the ORNANE issuance agreement were not met. AgroGeneration strongly contests the alleged default and considers that it was acting within its rights. Accordingly, the company decided to contest the request for early repayment of the ORNANE bonds in cash before the Paris Commercial Court," the company says in a statement.

In response, European High Growth Opportunities decided to sue AgroGeneration in order to obtain payment of the alleged debt.

AgroGeneration will keep its shareholders informed of the result of such litigation, the agroholding stresses.

As previously reported, in the financial year 2018, AgroGeneration had reduced its net loss to EUR 8.5 million, 35 per cent less from the previous year (EUR 13.2 million).