At the end of 2024, the group reported a net debt of approximately €14m. The majority of capital expenditure (capex) has been allocated to industrial investments for producing approximately 1.5 million Zeneo devices. This includes €3.8m in capex during 2014-15, €3.2m in FY18, €4.4m in FY19 and €6m in FY20, alongside recurring net capex of about €3m annually.
Looking forward, we anticipate recurring capex of €2m, with additional “expansion” capex of €3m for every 2.5 million units sold. However, these thresholds may not necessitate such high investment levels. Another critical consideration before recording any initial sales is the funding required for clinical studies. The management estimates the full development cost of each NTE, including clinical studies, at approximately €2-3m, incurred over the two years before market approval. This is in addition to the company’s regular cash burn before product availability.
Crossject is expected to benefit from upfront fees upon signing partnership agreements, tax credits and remaining “PIAVE” financing. We believe the group is self-financing, contingent on securing short-term partnerships. Failing this, Crossject may need to access the financial markets or explore alternative financing, such as selling future royalties to a financial partner.
The group has previously raised capital to meet its short-term needs, initially through an equity line in FY16 and a €5 million capital increase in March 2017. It issued a €5.3m convertible bond in March 2018 and another €2.5m in July. A €3.9m capital increase was announced on 28 November 2018, priced at €1.16, with 3.4m new shares listed by 28 December 2018. The conversion of convertible bonds in FY19 reduced bond debt by approximately €5m. At the end of FY19, a new €5.7m convertible bond was issued. More recently, the group issued two bonds, each worth €5.24m (one convertible), in December 2020. In December 2021, €7.5m in convertible bonds were issued, with a conversion price set at the lesser of €3.30 or 92% of the market price, while the existing shareholders received a free subscription price (20 rights required to purchase one share). In February 2024, the group announced the issuance of 70 amortizable bonds convertible into new stock, with a nominal value of €100,000, totalling €7m, waiving preferential subscription rights.
In April/May 2024, an €8m capital increase occurred, primarily to finance the US launch of Zepizure (€6m) and the development of other NTEs (Hydrocortisone and Epinephrine). Another €7.2m capital increase took place in December 2024 with subscription rights, followed by a final increase of €5.7m in June 2025.
