Market Overview

c-LEcta Lays Foundation for Further Growth and Closes Financing Round

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  • Closing of financing round with new investors Capricorn and bm|t
    brings growth capital and valuable access to international network
  • Growth financing to take c-LEcta to a new level by upscaling food
    ingredients manufacturing to commercial production in a
    multi-billion-euro market
  • New CFO Thomas Pfaadt to manage and support growth

c-LEcta, a world-leading biotechnology company focused on enzyme
engineering and applications in regulated markets like food and pharma,
has closed a financing round with Capricorn Venture Partners and the
German investment company bm|t. The capital increase provides the
company with growth capital as well as valuable access to an
international network.

c-LEcta already has a diversified shareholder structure. In addition to
the founder, Dr. Marc Struhalla, private industrial investors and German
institutionals, the company has now expanded its circle of shareholders
by attracting international investors. c-LEcta has received growth
capital from two new shareholders. Lead investor, Capricorn Venture
Partners, is an independent, internationally oriented investment
company, based in Leuven, Belgium. Capricorn invests in innovative,
technology driven companies and has a multidisciplinary team of
experienced investment professionals. Capricorn invested via two funds,
namely the Capricorn Sustainable Chemistry Fund NV and the Quest for
Growth NV. The German investment company bm|t invests in high-growth
technology companies led by entrepreneurial teams. bm|t invested via the
MFT Mittelstands-Fonds Thüringen GmbH & Co. KG. These new funds are
planned to be particularly invested in the approval, launch and scale-up
of products from the project pipeline, further development of the
pipeline as well as the expansion of international sales.

Mr. Ludwig Goris, Investment Manager of Capricorn, commented on the
investment in c-LEcta: "We see that global mega trends and challenges in
human nutrition are paving the way for industrial biotech companies like
c-LEcta. Since its foundation, c-LEcta has built up a remarkable track
record of technology and product development and has been able to
validate that through a growing customer base of leading pharma,
chemical and food ingredient companies. In addition, we were impressed
by the highly qualified team in Leipzig. Founder and CEO Dr. Marc
Struhalla and his motivated team have created a great company that has
arrived at an attractive inflection point where the current product
pipeline forms the foundation for an accelerated growth curve. We are
proud to lead this growth capital round and contribute to the success of
c-LEcta."

Kevin Reeder, CEO of bm|t, added: "bm|t, which has a substantial life
sciences portfolio, is very optimistic about its investment in c-LEcta.
The company´s strong team, track record of successful development, and a
highly compelling product pipeline were extremely impressive. We feel
c-LEcta is well-positioned to transition to a high-value biotechnology
product company." The two new investors expand the group of
shareholders, which previously included the following investors: SHS
Gesellschaft für Beteiligungsmanagement mbH, High-Tech Gründerfonds
Management GmbH, KfW Bankengruppe, Dr. Marc Struhalla, Warning
Beteiligungs GmbH, Dr. Bader Beteiligungs GmbH, and Arthur Steinmetz
Beteiligungs GmbH.

In order to reinforce management and the board and support the
anticipated growth, Thomas Pfaadt (45) recently joined c-LEcta as CFO.
He enriches the company with his experience in corporate finance and
M&A. Previously Thomas Pfaadt worked for a private equity-owned operator
of rehabilitation clinics as well as for a family-owned integrated
healthcare group. He also gained experiences as an investment banker and
consultant with a strong focus on the healthcare sector. He commented on
what excites him about c-LEcta: "c-LEcta is a young, lean, and dynamic
company and a global player at the same time. We are fighting the
serious challenges of today's human nutrition. A growing population and
a growing demand for healthy natural food require solutions from enzyme
technologies that the chemical industry cannot provide. We are pleased
to have won these two new investors to finance our work in addressing
these large opportunities."

c-LEcta is a fully integrated biotechnology company based in Leipzig,
Germany, with focus on enzyme engineering and application in regulated
markets like food and pharma. c-LEcta currently employs approximately 60
people. The company is well diversified and covers a large part of the
value chain from discovery to engineering to the commercial production
of enzymes as well as the manufacturing of other high-quality
biotechnology products, either as in-house developments or in close
cooperation with the industry. Over the last five years, c-LEcta has
conducted more than 30 enzyme engineering projects with a success rate
of >90%. Only a few weeks ago, the company announced a major
breakthrough as the first company to develop a process to enable the
mass-production of a plant-based sweetener with a real sugar-like taste.
In addition, two further food ingredient products with high market
potential are in an advanced development stage and the project pipeline
comprises several promising candidates addressing the multi-billion-euro
food ingredients market. This growth financing is intended to raise
c-LEcta to a new level and elevate the focused food ingredients from the
project pipeline to commercial scale production.

CEO Dr. Marc Struhalla commented on c-LEcta's core technology and the
capital increase: "The performance requirements for enzymes to be
applied in industrial processes are in most cases very specific and vary
from naturally occurring variations. Enzymes therefore need to be
adapted to industrial conditions via enzyme engineering, and c-LEcta
owns one of the most efficient technology platforms in this area. For
enzyme optimization as well as for the development of artificial enzyme
activities, we use patent-protected strategies that are inspired by
nature. The industrial application of these technologies holds great
market potential. The financial strength and valuable international
network that we have gained through this financing round now offers us
the opportunity to develop the full potential of our technology and
people. With Capricorn Venture Partners and bm|t, we get two active
investors on board that can contribute substantially to our
international growth ambitions. Also, I am all the more pleased that our
new CFO Thomas Pfaadt will support us in this endeavor. Our goal is that
in the future c-LEcta´s technology will be employed in many things we
encounter in everyday life."

About Capricorn Venture Partners:

Capricorn Venture Partners is an independent European manager of venture
capital and equity funds, investing in innovative European companies
with technology as competitive advantage. It is based in Leuven, Belgium
and licensed by the FSMA (the Financial Services and Markets Authority
in Belgium).

About bm|t:

Erfurt-based, bm|t beteiligungsmanagement thüringen gmbh (bm|t) is the
largest growth investor in the federal state of Thuringia, Germany. bm|t
invests in innovative companies with strong growth potential across all
sectors and phases of the corporate lifecycle.

About c-LEcta

c-LEcta is a fully integrated world-leading biotechnology company with
focus on enzyme engineering and application in regulated markets like
food and pharma. The company is located in Leipzig, Germany, and has
established itself as a leading player in the realization of high-value
biotech products, either in the form of in-house developments or in
close cooperation with industry. The company currently employs
approximately 60 people.

c-LEcta delivers cost-efficient and sustainable production processes
which open new markets and allow for better penetration of existing
markets. The company is characterized by fast and efficient development
of best-in-class biotech solutions and a rapid and successful market
introduction and commercialization of the resulting products. This
enables c-LEcta to leverage the unique potential of its core
technologies. c-LEcta has a proven track record of more than ten
successfully commercialized high-value industrial biotech products.

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