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Shareholders' Equity
12 Months Ended
Dec. 31, 2021
Shareholders' Equity  
Shareholders' Equity

Note 10. Shareholders’ Equity

10.1.Share capital

The share capital is set at €409 thousand at December 31, 2021 divided into 40,873,551 fully authorized, subscribed and paid-up shares with a nominal value of €0.01.Changes in share capital during the years ended December 31, 2021 2020 and 2019 are as follows:

in euros, except number of shares

    

Premiums 

Share 

related to 

Number of 

Nominal 

Date

    

Nature of the transactions

    

capital

    

share capital

    

shares

    

value

Balance as of January 1st, 2019

 

222,573

 

77,460,125

 

22,257,277

 

0.01

01/23/2019

Capital increase by issuance of ordinary shares — Exercise of 274 BSPCE by Company employees

 

274

 

17,693

 

27,400

 

0.01

01/26/2019

Capital increase by issuance of ordinary shares — Vesting of AGA by Company employees (AGA 2018-1)

 

100

 

 

10,000

 

0.01

04/18/2019

Capital increase by issuance of ordinary shares — Vesting of AGA by Company employees (AGA 2017-1)

 

775

 

 

77,500

 

0.01

09/20/2019

Capital increase by issuance of ordinary shares — Company’s private placement

 

41,600

 

8,236,798

 

4,159,999

 

0.01

09/20/2019

Transaction costs related to the Company’s private placement

 

 

(312,294)

 

 

10/02/2019

Capital increase by issuance of ordinary shares — Company’s private placement

 

3,139

 

621,593

 

313,936

 

0.01

10/02/2019

Transaction costs related to the Company’s private placement

 

 

(12,023)

 

 

Balance as of December 31, 2019

268,461

86,011,893

26,846,112

0.01

01/26/2020

 

Capital increase by issuance of ordinary shares – Vesting of AGAs by Company employees (AGA 2018-2)

 

633

 

 

63,300

 

0.01

02/07/2020

 

Capital increase by issuance of ordinary shares – Company’s private placement

 

37,783

 

14,962,218

 

3,778,338

 

0.01

02/07/2020

 

Transaction costs related to the Company’s private placement

 

 

(319,564)

 

 

04/17/2020

 

Appropriation of the issue premium

 

 

(48,000,000)

 

 

06/28/2020

Capital increase by issuance of ordinary shares – Vesting of AGAs by Company employees (AGA 2019-2)

2,270

227,000

0.01

07/15/2020

Capital increase by issuance of ordinary shares – Company’s initial public offering

74,783

94,024,272

7,478,261

0.01

07/15/2020

Transaction costs related to the Company’s initial public offering

(7,077,866)

11/30/2020

Capital increase by emission of ordinary shares – Emission of 10,000 BSA

100

66,650

10,000

0.01

12/14/2020

Capital increase by issuance of ordinary shares – Vesting of AGAs by Company employees (AGA 2018-3)

2,273

227,250

0.01

Balance as of December 31, 2020

386,302

139,667,603

38,630,261

0.01

06/28/2021

Capital increase by issuance of ordinary shares – Vesting of AGAs by Company employees (AGA 2019-1)

291

29,100

0.01

09/27/2021

Capital increase by issuance of ordinary shares – (ATM)

20,833

25,556,803

2,083,334

0.01

10/01/2021

Capital increase by issuance of ordinary shares – (ATM)

1,309

1,615,584

130,856

0.01

10/01/2021

Transaction costs related to ATM

(1,768,424)

Balance as of December 31, 2021

408,735

165,071,566

40,873,551

0.01

During the year ended, the main impacts on the share capital relate to the following events:

-

Capital increase of €25.4 million of cash, consisting of the net proceeds of the two ATM emissions on September 27, 2021 and on October 1st, 2021

-

Final acquisition of 29,100 AGAs 2019-1 on June 28, 2021

For more details on the operations of the fiscal year 2021, please refer to Note 1.2, "Significant events of 2021".

During the years ended December 31, 2020 and 2019, the main impacts on the share capital relate to the following events:

-USD 107.7 million initial public offering on the Nasdaq Global Market in July 2020

See Note 1.3, “Significant events of 2019 and 2020”

-The reclassification of €48.0 million from debit retained earnings to premiums related to share capital following the decision of the General Meeting on April, 18 2020;
-Capital increase of €14.7 million reserved for a category of investors in February 2020

See Note 1.3, “Significant events of 2019 and 2020”

-Capital increases for a total amount of €8.9 million subscribed by Americans and Europeans investors in September and October 2019

On September 20, 2019 and On October 2, 2019, Inventiva completed two capital increases subscribed by New Enterprise Associates (NEA), as well as BVF Partners L.P., Sofinnova Partners and Novo Holdings A/S, three of the Company's existing shareholders.

The settlement-delivery of the new shares took place successfully on September 20, 2019 and on October 2, 2019.

The gross proceeds of the transaction were €8.9 million and were mainly dedicated to the research and development activities of the Company, including the development of the Company's product candidates, in particular lanifibranor and odiparcil.

The new shares are assimilated to the existing shares of the Company and are admitted to trading on Euronext Paris.

As part of the capital increase, the Company incurred transaction costs of €0.3 million in 2019, comprising compensation to financial intermediaries and legal and administrative fees. The costs are recognized as a deduction from additional paid-in capital within equity.

Movements related to BSA share warrants plans and AGA bonus shares award plans are described in Notes 10.3, “Share warrants plans” and 10.4, “Bonus share award plans”.

10.2.Liquidity agreement

On January 19, 2018, the Company entered into a new liquidity agreement with Kepler Cheuvreux, replacing the previous liquidity agreement with Oddo BHF, for a period of 12 months renewable by tacit agreement. Under the terms of the agreement, the investment services provider (ISP) is authorized to buy and sell Inventiva treasury shares without interference from the Company in order to ensure the liquidity of the shares on the Euronext market.

At the date of approval of these financial statements, the liquidity agreement with Kepler Chevreux was extended for a new period of 12 months from January 1, 2022.

At December 31, 2019, 2020 and 2021, treasury shares purchased and sold by Inventiva through its ISP, as well as the gains or losses resulting from share purchase, sale, issue and cancellation transactions during the period, were accounted for as a deduction from equity. Consequently, these transactions had no impact on the Company’s results.

10.3.Share warrants plans

Share warrants correspond to:

BSPCE founder share warrants granted to the Company’s employees in 2013 and 2015;
BSA share warrants granted to Company directors in 2017, with a subscription price set at €0.53;
BSA share warrants granted to Company service providers in 2018, with a subscription price set at €0.48;
BSA share warrants granted in 2019 to David Nikodem, a member of Sapidus Consulting Group LLC, a service provider of Inventiva, with a subscription price set at €0.18; and
BSA share warrants granted in 2020 to David Nikodem, a member of Sapidus Consulting Group LLC and to Jeremy Goldberg, a member of PG Heatlhcare LLC, service providers of Inventiva, with a subscription price set at €0.29.
BSPCE founder share warrants granted to Frederic Cren and Pierre Broqua, Company's Directors; and
BSA share warrants granted in 2021 to David Nikodem, a member of Sapidus Consulting Group LLC, a service provider of Inventiva, with a subscription price set at €2.45.

Characteristics of BSPCE share warrants plans

At January 1, 2021, one BSPCE 2013-1 share warrants plan was outstanding. In 2021, a new share warrants plan “BSPCE 2021” was granted to executive directors.

The main characteristics of the plans are described in the following table:

    

BSPCE 2013-1

BSPCE 2021

 

Decision of issuance by the Board of Directors

 

13/12/2013

04/16/2021

Grant date

 

13/12/2013

04/16/2021

Beneficiary

 

3 employees

Executive Directors (Frederic Cren and Pierre Broqua)

Number of BSPCE granted

 

9 027

600,000

Expiration date

 

13/12/2023

03/31/2034

Number of shares per BSPCE

 

100

1

Subscription price (€)

58.50

0

Exercise price (€)

0.585

11.74

Performance condition

No

Partially(1)

Valuation method used

Black and Scholes

Monte Carlo

Fair value at grant date (€)

19

[5.4 – 5.7] (1)

Expected volatility

35

%

64

%

Average life (years)

5

5

Risk-free rate

1.13

%

0.60

%

Expected dividends

 

(1)The fair value at grant date is different depending on whether the BSPCEs are subject to market performance conditions.

Characteristics of BSA share warrant plans

At January 1, 2021, five BSA share warrant plans were outstanding: BSA 2017, BSA 2018, BSA 2019, BSA 2019 bis and BSA 2019 ter. In 2021, one new BSA share warrant plan (“BSA 2021”) was granted to service providers.

The main characteristics of the plans are described in the following table:

    

    

BSA

BSA

 

    

BSA 2017

    

2018-1

    

BSA 2019

    

2019 bis

    

BSA 2019 ter

BSA 2021

 

Decision of issuance by the Board of Directors

05/29/2017

12/14/2018

 

06/28/2019

 

03/09/2020

 

03/09/2020

04/16/2021

Grant date

05/29/2017

12/14/2018

 

06/28/2019

 

03/09/2020

 

03/09/2020

04/16/2021

Beneficiary

Directors

Service providers

 

Service providers

 

Service providers

 

Service providers

Service providers

Vesting period (year)

3 tranches: 1 year, 2 years and 3 years

between 1 and 3 years

 

1

 

1

 

between 1 and 3 years

3

Expiration date

05/29/2027

12/14/2028

 

06/28/2029

 

03/09/2030

 

03/09/2030

03/31/2034

Number of BSA granted

195,000

126,000

 

10,000

 

10,000

 

36,000

50,000

Number of shares per BSA

1

1

 

1

 

1

 

1

1

Subscription premium price per share (€)

0.534

0.48

 

0.18

 

0.29

 

0.29

2.45

Exercise price per share (€)

6.675

6.067

 

2.20

 

3.68

 

3.68

11.74

Performance condition

No

No

 

No

 

No

 

No

Yes

Valuation method

Black and Scholes

Monte Carlo

Fair value per BSA at grant date (€)

2.47

1.98

0.48

0.90

0.90

[3.0 – 3.2] (1)

Expected volatility

40

%

40

%

40

%

40

%

40

%

64

%

Average life (years)

6

6

5.5

6

6

5

Risk free rate

0.22

%

0.30

%

0.33

%

0.0

%

0.0

%

0.60

%

Expected dividends

 

 

 

(1)The fair value at grant date is different depending on whether the BSPCEs are subject to market performance conditions.

Movements in BSPCE and BSA share warrants (in number of shares issuable upon exercise)

    

    

Exercise

    

Outstanding

    

    

    

    

Outstanding

    

Number of

price

at January 1,

at December 31,

shares

Type

    

Grant date

    

(in euros)

    

2021

    

Issued

    

Exercised

    

Forfeited

    

2021

    

exercisable

BSPCE — 2013 plan

 

Dec. 13, 2013

 

0.59

 

8,800

 

 

 

 

8,800

 

8,800

BSPCE Plan 2021

April 16, 2021

11.74

600,000

600,000

Total BSPCE

 

  

 

  

 

8,800

 

600,000

 

 

 

608,800

 

8,800

BSA — 2017 plan

 

May 29, 2017

 

6.67

 

130,000

 

 

 

 

130,000

 

130,000

BSA — 2018 plan

 

Dec. 14, 2018

 

6.07

 

116,000

 

 

 

 

116,000

 

116,000

BSA — 2019 plan

 

June 28, 2019

 

2.20

 

10,000

 

 

 

 

10,000

 

10,000

BSA 2019 Bis

March 9, 2020

3.68

10,000

10,000

10,000

BSA 2019 Ter

March 9, 2020

3.68

36,000

36,000

12,000

BSA - Plan 2021-1

April 16, 2021

11.74

50,000

(30,000)

20,000

Total BSA

 

  

 

  

 

302,000

 

50,000

 

 

(30,000)

 

322,000

 

278,000

Total

 

310,800

 

650,000

 

 

(30,000)

 

930,800

 

286,800

The change in BSPCE and BSA share warrants over 2021 can be broken down as follows:

the issue of 50,000 new 2021-1 Bis BSAs allocated to ISLS Consulting and David Nikodem, a member of Sapidus Consulting Group LLC, a service provider of the Company, of which 30,000 BSA 2021-1 allocated to ISLS Consulting have been cancelled due to the non-payment of warrants,
the issue of 600,000 new 2021 BSPCE allocated to the Company's directors, Frederic Cren and Pierre Broqua.

At December 31, 2021, a total of 600,088 BSPCEs (or 608,800 shares) and 322,000 BSAs were outstanding, which corresponds to a total of 930,800 shares that can be issued during the exercise.

Share-based payment expense totaled €859 thousand for the year ended December 31, 2021 (compared to €18 thousand for the year ended December 31, 20120 and €227 thousand for the year ended December 31, 2019) and were recognized in personnel costs (see Note 17.1 “Personnel costs and headcount”).

    

    

Exercise

    

Outstanding

    

    

    

    

Outstanding

    

Number of

price

at January 1,

at December 31,

shares

Type

Grant date

    

(in euros)

    

2020

    

Issued

    

Exercised

    

Forfeited

    

2020

    

exercisable

BSPCE — 2013 plan

Dec. 13, 2013

 

0.59

 

8,800

 

 

 

 

8,800

 

8,800

Total BSPCE

 

 

8,800

 

 

 

 

8,800

 

8,800

BSA — 2017 plan

May 29, 2017

 

6.67

 

140,000

 

 

(10,000)

 

 

130,000

 

130,000

BSA — 2018 plan

Dec. 14, 2018

 

6.07

 

116,000

 

 

 

 

116,000

 

77,334

BSA — 2019 plan

June 28, 2019

 

2.20

 

10,000

 

 

 

 

10,000

 

10,000

BSA 2019 Bis

March 9, 2020

3.68

10,000

10,000

BSA 2019 Ter

March 9, 2020

3.68

36,000

36,000

Total BSA

 

 

266,000

 

46,000

 

(10,000)

 

 

302,000

 

217,334

Total

 

 

274,800

 

46,000

 

(10,000)

 

 

310,800

 

226,134

The change in BSPCE and BSA share warrants over 2020 can be broken down as follows:

the issue of 10,000 new 2019 Bis BSAs allocated to Jeremy Goldberg, a member of JPG Healthcare LLC,
the issue of 36,000 new 2019 Ter BSAs allocated to David Nikodem, a member of Sapidus Consulting Group LLC, a service provider of the Company,
the exercise of 10,000 BSA 2017 by Karen Aïach (former administrator)

    

    

Exercise

    

Outstanding

    

    

    

    

Outstanding

    

Number of

price

at January 1,

at December 31,

shares

Type

    

Grant date

    

(in euros)

    

2020

    

Issued

    

Exercised

    

Forfeited

    

2020

    

exercisable

BSPCE — 2015 plan

 

May 25, 2015

 

0.67

 

22,800

 

 

(22,800)

 

 

 

BSPCE — 2013 plan

 

Dec. 13, 2013

 

0.59

 

13,400

 

 

(4,600)

 

 

8,800

 

8,800

Total BSPCE

 

  

 

 

36,200

 

 

(27,400)

 

 

8,800

 

8,800

BSA — 2017 plan

 

May 29, 2017

 

6.67

 

175,000

 

 

 

(35,000)

 

140,000

 

120,000

BSA — 2018 plan

 

Dec. 14, 2018

 

6.07

 

126,000

 

 

 

(10,000)

 

116,000

 

38,667

BSA — 2019 plan

June 28, 2019

2.20

10,000

10,000

Total BSA

 

  

 

  

 

301,000

 

10,000

 

 

(45,000)

 

266,000

 

158,667

Total

 

337,200

 

10,000

 

(27,400)

 

(45,000)

 

274,800

 

167,467

The change in BSPCE and BSA share warrants over 2019 can be broken down as follows:

the exercise of 274 BSPCE share warrants by Company employees on January 23, 2019, whereupon 27,400 new shares were issued;
the cancellation of 35,000 BSA 2017 share warrants allocated to two corporate officers, which were forfeited following the end of their offices at the Annual General Meeting of May 27, 2019;
the cancellation of 10,000 BSA 2018 share warrants allocated to JPG Healthcare, which were forfeited; and
the issue of 10,000 new 2019 BSAs allocated to David Nikodem, a member of Sapidus Consulting Group LLC, a service provider of the Company.

10.4.

Bonus share award plans

At January 1, 2021, only free share award plan AGA 2019-1 was in effect. In 2021, two new bonus share award plans (“AGA 2021” and “AGA 2021-bis”) were granted.

The main characteristics are described in the table below:

    

    

    

 

AGA 2019-1

AGA 2021

AGA 2021-bis

 

Decision of issuance by the Board of Directors

 

06/28/2019

 

04/16/2021

 

12/08/2021

Grant date

 

06/28/2019

 

04/16/2021

 

12/08/2021

Beneficiary

 

Employees

 

Employees

 

Employees

Vesting period (year)

 

2

 

3

 

3

Holding period (year)

 

1

 

 

Service condition

 

Yes

 

Yes

 

Yes

Performance condition

 

No

 

Partially (1)

 

Partially (1)

Number of AGA granted

 

37,500

 

466,000

 

123,000

Number of shares per AGA

 

1

 

1

 

1

Valuation method used

Inventiva share price less
a discount for
non-transferability

Dual (1)

Dual (1)

Fair value per AGA at grant date

1.92

9.8 – 11.3 (1)

11.4 – 12.2 (1)

Expected volatility

N/A

64

%

64

%

Average life (years)

N/A

3

2.3

Risk-free rate

N/A

0.60

%

0.60

%

Expected dividends

N/A

Stock price reference

2

N/A

N/A

Non-transferable discount

 

3.8

%

N/A

 

N/A

(1)AGA 2021-1 and AGA 2021-bis plans are partially composed of AGAs subject to a market performance condition. Accordingly, AGAs not subject to performance conditions are valued on the basis of the share price less future dividends, discounted at the risk-free rate. AGAs subject to performance conditions are valued using the same method, adjusted by a discount applied to reflect the performance condition. This discount is determined using the "Monte Carlo" analysis. The fair value at the grant date is different depending on whether the AGAs are subject to market performance conditions.

Bonus share movements (in number of shares issuable upon exercise)

Stock price

Outstanding

Outstanding

Number of

at grant date

at January 1,

at December 31,

shares

Type

    

Grant date

    

(in euros)

    

2021

    

Issued

    

vesting

    

Forfeited

    

2021

    

exercisable

AGA — 2019‑1 plan

 

06/28/19

 

2.00

 

29,100

 

 

(29,100)

 

 

 

AGA — 2021‑1 plan

 

04/16/21

 

11.30

 

 

466,000

 

 

(18,000)

 

448,000

 

AGA — 2021‑bis plan

 

12/08/21

 

12.20

 

 

123,000

 

 

 

123,000

 

Total AGA

 

29,100

 

589,000

 

(29,100)

 

(18,000)

 

571,000

 

During 2021, the change in AGA bonus shares over the period can be broken down as follows:

The allocation of two new plans AGA 2021-1 and AGA 2021-bis to employees of the Company for a total of 589,000 potential new shares;
The definitive vesting of 29,100 AGA 2019-1. As a result, 29,100 new shares were issued; and,
The cancellation of a total of 18,000 AGA 2021-1 that have forfeited following the departure of employees.

At December 31, 2021, 571,000 AGAs were outstanding.

The 2021-1 and 2021-bis AGAs are exercisable with a condition of presence, combined for half of them with certain performance conditions, at the end of a vesting period expiring on the date of the Board of Directors' meeting planned to approve the Company's financial statements for the year ending December 31, 2023 and will be exercisable no later than March 31, 2034.

Share-based payments expense totaled €1 231 thousand for the year ended December 31, 2021 (compared to €920 thousand for the year ended December 31, 2020 and €1 180 thousand for the year ended December 31, 2018) and were recognized in personnel costs (see Note 17.1, “Personnel costs and headcount”).

Stock price

Outstanding

Outstanding

Number of

at grant date

at January 1,

at December 31,

shares

Type

    

Grant date

    

(in euros)

    

2020

    

Issued

    

vesting

    

Forfeited

    

2020

    

exercisable

AGA — 2018-2 plan

January 26, 2018

 

5.76

 

63,300

 

 

(63,300)

 

 

 

AGA — 2018-3 plan

December 14, 2018

 

6.28

 

227,250

 

 

(227,250)

 

 

 

AGA — 2019-1 plan

June 28, 2019

 

2.00

 

37,500

 

 

 

(8,400)

 

29,100

 

AGA — 2019-2 plan

June 28, 2019

 

2.00

 

228,000

 

 

(227,000)

 

(1,000)

 

 

Total AGA

 

556,050

 

 

(517,550)

 

(9,400)

 

29,100

 

During 2020, the change in AGA bonus shares over the period can be broken down as follows:

The definitive vesting of 63,300 AGA 2018-2, 227,000 AGA 2019-2 and 227,250 AGA 2018-3. As a result, 517,550 new shares were issued; and,
The cancellation of a total of 8,400 AGA 2019-1 AGA and 1,000 AGA 2019-2 that have forfeited following the departure of employees.

At December 31, 2020, a total of 29,100 AGA free shares were outstanding. AGA 2019-1 bonus shares are exercisable from June 28, 2021 to no later than June 28, 2022, subject to continued employment.

Stock price

Outstanding

Outstanding

Number of

at grant date

at January 1,

at December 31,

shares

Type

    

Grant date

    

(in euros)

    

2019

    

Issued

    

Vesting

    

Forfeited

    

2019

    

exercisable

AGA—2017‑1 plan

 

April 18, 2017

 

7.35

 

77,500

 

 

(77,500)

 

 

 

AGA—2018‑1 plan

 

January 26, 2018

 

5.76

 

10,000

 

 

(10,000)

 

 

 

AGA—2018‑2 plan

 

January 26, 2018

 

5.76

 

65,700

 

 

 

(2,400)

 

63,300

 

AGA—2018‑3 plan

 

December 14, 2018

 

6.28

 

265,700

 

 

 

(38,450)

 

227,250

 

AGA—2019‑1 plan

June 28, 2019

2.00

37,500

37,500

AGA—2019‑2 plan

June 28, 2019

2.00

246,000

(18,000)

228,000

Total AGA

 

418,900

 

283,500

 

(87,500)

 

(58,850)

 

556,050

 

During 2019, the change in AGA bonus shares over the period can be broken down as follows:

Two new share plans for Company employees involving a total of 283,500 potential new shares.
Final allotment of 10,000 AGA 2018-1 bonus shares on January 26, 2019 and 77,500 AGA 2017-1 bonus shares on April 18, 2019, whereupon 87,500 new shares were issued.
Cancellation of 58,850 AGA bonus shares which were forfeited during the period: 10,850 AGA 2018-3 warrants as part of the redundancy plan for the period, 2,400 AGA 2018-3 bonus shares refused by an employee, and 45,600 AGA bonus shares bonus (of which 2,400 AGA 2018-2 bonus shares, 25,200 AGA 2018-3 bonus shares and 18,000 AGA 2019-2 bonus shares) as a result of voluntary departures.

At December 31, 2019, a total of 556,050 AGA bonus shares were outstanding.