Safe Orthopaedics Strengthens Its Financial Means Through the Setting up of a PACEO® Equity Facility with Societe Generale

Regulatory News:

SAFE ORTHOPAEDICS (Paris:SAFOR)(FR0012452746 – SAFOR), a company developing and marketing an innovative range of sterile implants combined with their single-use surgical instruments for back surgery, announces that it has entered into a PACEO^® equity facility with Societe Generale through the issuance of 1,000,000 equity warrants, as authorized by the 18^th resolution approved by the Shareholders’ Meeting held on January 9, 2015 and article L. 225-138 of the French commercial code.

Based on Safe Orthopaedics’ current share price¹, should the entire equity facility be used then the Company would have an additional 3.4 million euros in funding.

This equity financing solution will allow Safe Orthopaedics to strengthen its financial flexibility in order to accompany its development projects while diversifying its funding sources and limiting the dilutive effect for its shareholders.

As a reminder, Safe Orthopaedics had a cash position of 7.6 million euros at September 30, 2015, and has over twelve months of cash from the date on which the PACEO^® equity line is put in place.

Subject to certain conditions, and notably the Company’s right to suspend the program’s execution at any time, Societe Generale is committed to subscribing, in one or more installments, to 1,000,000 new shares upon exercise of the equity warrants issued to it, i.e. 7.6% of the Company’s current share capital, over the coming 36 months, including 500,000 shares over the coming 18 months.

For each tranche, the issuance price will include a maximum discount of 7% on the weighted average share price on the trading day preceding its fixing. This discount allows Societe Generale, which does not intend to be a long-term shareholder in the Company, to guarantee share subscription regardless of market volatility.

Should the entire standby equity facility be drawn down², a shareholder who currently owns 1% of the Company’s share capital would see a reduction in their ownership to 0.93%³.

About PACEO^®

An equity financing solution designed by Societe Generale, the PACEO® helps issuers diversify their funding sources through an additional financing option while preserving their balance sheet structure. It may be called upon through successive drawdowns in exchange for the issuance of new shares correlated to the market price at that time; it provides the same economic and financial benefits as a capital increase while providing the same guarantee as a confirmed credit line. Societe Generale, the leading institution for equity lines in France, has thus set up its 52nd PACEO^® deal.

About Safe Orthopaedics

Founded in 2010, Safe Orthopaedics is a French medical technology company that develops and markets an innovative range of sterile implants and associated single-use surgical instruments, with the aim of facilitating safer, optimized and lower-cost spinal surgery. By avoiding the reuse of surgical instruments, Safe Orthopaedics reduces the risk of infection, avoids the cumbersome and unreliable logistics of instrument sterilization, and limits hospital costs. Protected by 17 patent families, the company’s CE-marked and FDA-approved SteriSpine^TM kits are already being marketed in 12 countries, in Europe and the United States. They are being rapidly adopted by surgeons throughout the world, with nearly 1,000 procedures performed in 2014 and 1,691 as of September 30, 2015. The company is based at Eragny-sur-Oise (France), and has 32 employees and a US subsidiary.

For more information, visit: www.SafeOrtho.com

Disclaimer

This press release contains certain forward-looking statements concerning Safe Orthopaedics and its business. Such forward-looking statements are based on assumptions that Safe Orthopaedics considers to be reasonable. However, there can be no assurance that the anticipated events contained in such forward-looking statements will occur. Forward-looking statements are subject to numerous risks and uncertainties including the risks set forth in the registration document of Safe Orthopaedics registered by the French Financial Markets Authority (Autorité des marchés financiers) on January 12, 2015 under number I.15-003 (a copy of which is available on www.safeorthopedics.com) and to the development of economic conditions, financial markets and the markets in which Safe Orthopaedics operates. The forward-looking statements contained in this press release are also subject to risks not yet known to Safe Orthopaedics or not currently considered material by Safe Orthopaedics. The occurrence of all or part of such risks could cause actual results, financial conditions, performance or achievements of Safe Orthopaedics to be materially different from such forward-looking statements.

This press release and the information that it contains do not constitute an offer to sell or subscribe for, or a solicitation of an offer to purchase or subscribe for, Safe Orthopaedics shares in any country.

¹ Closing price of €3.69 on October 22, 2015
² Resulting in the issuance of 1,000,000 new shares
³ Based on Safe Orthopaedics’ share capital consisting of 13,102,127 shares

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