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Crossject

CR
Bloomberg   ALCJ FP
Supergenerics  /  France  Web Site   |   Investors Relation
Things get going
Target
Upside 473%
Price (€) 1.97
Market Cap (€M) 71.9
Perf. 1W: 0.00%
Perf. 1M: -6.54%
Perf. 3M: -53.2%
Perf Ytd: -59.9%
10 day relative perf. to stoxx600: -6.58%
20 day relative perf. to stoxx600: -9.70%
Financing issue 20/11/2019

A €2.6m non-dilutive 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.


Updates

31 Mar 21 Earnings/sales releases
FY20 unsuprising; waiting for more

15 Dec 20 Financing issue
A double bond issue

21 Sep 20 Earnings/sales releases
Update on the group's business

29 Mar 20 Earnings/sales releases
Meaningless FY19 results and product update

23 Dec 19 Financing issue
Extra-financing to increase visibility

20 Nov 19 Financing issue
A €2.6m non-dilutive issue

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