Edison Investment Research - Pharnext SA (ALPHA) Pharnext - €12m loan to ease funding overhang

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Edison Investment Research

Sean Conroy

Pharnext - €12m loan to ease funding overhang

Pharnext announced that it has raised €12m in short-term, fixed-rate financing from Global Tech Opportunities 13, a member of the Alpha Blue Ocean group and the company’s convertible debt (OCEANE-BSA) holder. This refinancing will be used to pay off the outstanding €8m in venture debt obligations to IPF Partners (raised in 2018), releasing Pharnext from the restrictive covenants requiring it to maintain a €8m cash balance. Additionally, the funds will serve as an alternative source of financing for the dilutive drawdown of incremental convertible tranches. In light of this announcement, we are withdrawing our forecasts while we revisit our estimates and valuation.

10/06/2022 1 EN

Underlying

Pharnext SA

Pharnext SA is a France-based biopharmaceutical company. The Company is focused on discovering, developing and licensing new therapeutic solutions (Pleodrugs) and companion tests for unmet medical needs (large and niche markets) by using the Pleotherapy approach. Pharnext SA runs all its own activities, from research through to clinical development (no further than the end of Phase II trials), and then licenses the Pleodrugs to industrial partners. The Company's prime focus is on neurodegenerative diseases and metabolic diseases.

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FR0011191287 Euronext Paris France

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts

Sean Conroy

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Pharnext - €12m loan to ease funding overhang

Pharnext - Termination of coverage

Pharnext - Potential licensing deals could add confidence

Pharnext - Improving FY23 financial footing

Record - AUME momentum and a sharper focus

Actinogen Medical - Funding in place through key catalysts

Henderson Opportunities Trust - A differentiated exposure to smaller companies

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