Another capital increase in the pipe…
Another capital increase in the pipe…FINANCING ISSUE
Crossject announced the preparation for a capital increase of approximately €5m, intended to meet the group’s needs until the Emergency Use Authorization is obtained. This amount could rise to €5.8m if the extension clause is exercised. This capital increase will provide management with flexibility for commercial and production activities related to this approval.
FACT
Crossject announced it is preparing a capital increase (beginning of June) with preferential subscription rights.
ANALYSIS
The transaction will be announced through a specific press release upon the decision to launch. In preparation, CROSSJECT will temporarily suspend the exercise of dilutive instruments, including warrants and convertible bonds (OCA). Gemmes Venture, holding approximately 26% of the group’s shares, has committed to subscribe to up to 75% of the capital increase. Another press release will detail the terms, conditions, and timetable of the transaction.
Approximately 60% of the funds will be allocated to the final development phases of ZEPIZURE and the initiation of production steps, including inventory build-up, prior to any reimbursement by the U.S. partner. The remaining 40% will finance R&D for other projects, ZENEO Adrenaline and ZENEO Hydrocortisone.
The issue is expected, given the cash burn of approximately €1 million monthly and the need to secure ZEPIZURE’s launch once the EUA is granted. We will adjust our projections to account for the anticipated dilution, estimated at around 7%, subject to the issue’s exact terms.
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.
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