Edison Investment Research - Pharnext SA (ALPHA) Pharnext - €20.7m funding agreement with Neovacs inked

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Edison Investment Research

Sean Conroy

Pharnext - €20.7m funding agreement with Neovacs inked

Pharnext has announced that it has finalised its strategic funding agreement with Neovacs for total net proceeds of €20.7m. The funds will be raised by issuing bonds across 11 monthly tranches and associated warrants (equal to 50% of Pharnext’s total outstanding shares). The warrants become applicable for exercise on 1 January 2024, allowing Neovacs to hold one-third of Pharnext’s diluted share capital once fully converted. Proceeds from the first bond tranche (€10.7m) have been used to repay the €5.6m (including accrued interest of €126k) drawn down from the total €12m fixed-rate loan raised from Alpha Blue Ocean (ABO) in June 2022, as well as the initial €2.5m raised from Neovacs. Concurrently, Pharnext has also announced a share consolidation (1:5,000) and suspension of the right to exercise all securities, effective late October 2022. New shares will begin trading on 23 November. We will be revising our estimates and valuation following the company’s forthcoming H122 results to account for these developments.

06/10/2022 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 - €20.7m funding agreement with Neovacs inked

Pharnext - Termination of coverage

Pharnext - Potential licensing deals could add confidence

Pharnext - Improving FY23 financial footing

Basilea Pharmaceutica - Cresemba milestone payments continue to roll in

AAC Clyde Space - Solid start to the year with further order growth

Tinexta - Typical seasonality in Q124

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