SDS OPTIC (IEU TI)

The Promoter is a medtech company focused on development and commercialisation of diagnostic and monitoring cutting-edge technologies, connecting molecular biology with novel photonic technologies, chemistry and biomedical engineering. The Company is developing an innovative In Vivo Photonics Immunoassays platform. Initially the technology is being developed for HER2 breast cancer diagnostics.

The loan will finance the research and development (R&D) investments to further advance the Promoter's product development and scale-up its technology to new indications.

The project is aligned with the InvestEU objective of promoting research, development and innovation. The purpose of the loan is to provide direct equity-type financing under the INVESTEU Thematic, benefiting from the EC guarantee, to finance research and development activities of an innovative medtech company SDS Optic. The project, if successful, is expected to have significant financial and broader social benefits, in terms of improved health and welfare. SDS Optic's expertise lies in connecting molecular biology with novel photonic technologies, chemistry and biomedical engineering to create diagnostic solutions. By supporting the promoter, the EIB enables the generation of European scientific knowledge and acumen, whilst preserving highly skilled employment opportunities. The technology is being first developed for the HER2 breast cancer, with more indications to follow. The financing of this project addresses the failure in financial markets for RDI-driven European SMEs suffering from systemic shortages of large, non-dilutive financing options for growth investments. Creation of knowledge and support of skilled jobs in Poland will further contribute positively towards the EU's 3% RDI intensity target. Currently, the Company does not have access either to non-dilutive or to long-term debt funding sources from traditional or even alternative debt providers. Due to volatility of European markets which has significantly increased since 2022, access to both equity markets and commercial debt providers has been highly limited for innovative but early-stage med tech companies such as SDS Optic. 

The financing structure is adjusted to the investment needs of the Company, with a long tenor and deferred interest, while most of the EIB remuneration will come in a form of warrants, minimising cash outflows. By contributing to extending the cash runway and therefore to de-risking the

development plan of the company, the EIB financing is expected to crowd-in third party investors and allow the company to accelerate its development. The project would not have been carried out (to the same extent) by the EIB without the InvestEU support.

The project concerns investments in research and development activities carried out by the Promoter and its partners in existing facilities without changing their already authorised scope. The research and development activities of the project do not fall under neither Annex I or Annex II of the Environmental Impact Assessment (EIA) EU Directive 2014/52/EU amending 2011/92/EU. Full environmental details will be verified during appraisal.

The Promoter is a private company not operating in the utilities sector and not having the status of a contracting authority. Thus, it is not covered by EU Directives on procurement. However, the promoter's procurement procedures are expected to be in line with EIB guidelines for private sector projects. The EIB's services will verify details during the project due diligence.