A €2.6m non-dilutive issue
A €2.6m non-dilutive issueFINANCING ISSUE
FACT
Crossject has announced it has obtained a €2.6m non-dilutive financing from IdVector Science and Technology, a European investor specialising in long-term non-dilutive financing of technology.
ANALYSIS
The financing takes the form of Notes, and includes a repayment based on a percentage of Crossject’s turnover up to (at the latest) 2028, with a floor payment of €285k for each of the first two years. Industrial property assets guarantee the loan (in a trust granting an exclusive licence to the group) which, according to Crossject’s management, is being reimbursed by a low single-digit share of the group’s future revenues (declining over time). Crossject went through a due-diligence process before the financing was granted, which we obviously find positive and confirms the quality of the group’s assets, processes and prospects. Altogether, Crossject assesses it needs €12m over the next 12 months, and cash-inflows (tax credits, advances, milestones, options exercised, etc.) will also include additional non-dilutive resources. Additional financing was expected. We like the idea that management is now focusing on non-dilutive tools, as was announced, both because it is in the interest of shareholders and, in this particular case, further strengthens the group’s credibility in terms of the due-diligence process.
IMPACT
We will most likely not amend our forecasts given the fact the financing is not very big and we also do not have the full details of its conditions. From a pure valuation standpoint, the financing does not really differ from a bank loan, even if the structure is obviously very different.
Crossject SA is a France-based company that designs and develops medical injection systems. The Company specializes in needle-free, pre-filled, single-use injection systems for intradermal, subcutaneous and intramuscular applications for pharmaceutical companies. Is also has a pipeline and three drugs in the preclinical or clinical phase of research. The Company's products, which are based on well-known injectable drugs (chemicals and biologics), are designed to enhance patients' safety, compliance and comfort. Crossject's first ZENEO SUPERGENERIC product is expected to reach the market in the year 2015. The Company has industrial partnerships with Hirtenberger and Recipharm.
AlphaValue Corporate Services capitalise on the research and credit analysis expertise deployed by AlphaValue with major institutional investors at European level over the past nine years. The proprietary tools and processes enabling AlphaValue Corporate Services to establish a valuation and/or a credit risk assessment are identical to those used by AlphaValue to the benefit of its institutional clients. The only difference is the recognition that a company evaluation cannot be dissociated from the fact that the latter is paying for the service (AlphaValue Corporate Services), as opposed to the investor footing the bill (AlphaValue). AlphaValue’s research tools are characterised by the transparency of the valuation methodologies, their responsiveness to market data and by nine years’ experience of a universe numbering more than 450 European companies. Through its coverage and sector exhaustiveness, AlphaValue ranks alongside the major research houses in Europe and constitutes the only new entrant to the European space in the past decade. This significant presence is reflected in an unrivalled distribution capability via platforms commonly adopted by investors to access research: Factset, Bloomberg, Capital IQ and the numerous websites. AlphaValue is one the largest research contributors to these platforms, to the benefit of AlphaValue Corporate Services issuer clients. The AlphaValue Corporate Services analysts are AlphaValue’s sector specialists. Their robust knowledge of the business models in their sectors enables the rapid generation of incisive, relevant research and advantageous interaction with the management teams.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.