The capital increase announced at the end of April was a success, the group raising its c.€8m target to finance the group until the launch of Zepizure in the US. The stake of its reference shareholder (Gemmes Venture) was unchanged at 24.28% after it subscribed c. 1.06m shares. This shareholder had committed to subscribing for up to 75% of the capital increase.
Crossject announced the positive outcome of its planned capital increase.
The successful closing of its rights offering with maintained preferential subscription rights was announced by the group, for a gross amount of c.€8m (also see our Latest dated 2 May, 2024). The proceeds will be used to finance the market launch of Zepizure (Midazolam) in the US (about 50% of proceeds) as well as to build its US operations with a view to commercializing this NTE directly and in its manufacturing activities (20%) as well as develop new NTEs (Hydrocortisone and Adrenaline), (with the EUA (Emergency Use Authorization) for Zepizure expected in Q1 25 and full authorization in H12 5.
A total of c.4.3m shares were subscribed at a price of €1.848 per share. Gemmes Venture, the group’s reference shareholder, subscribed for c. 1.058m new shares on a non-reducible basis, and holds an unchanged 24.48% stake in Crossject.
We will integrate the new shares and the implied dilution, together with the cash inflow aimed at financing the short-term needs of the company. The management has reiterated that this round of financing will enable them “to reach the regulatory filing milestones for Zepizure in 2025”, which is good news as we previously wrote (5 May, 2024) but obviously does not completely exclude new financings before the product reaches the market. The management has also indicated that this capital increase will “support its ability to source additional non-dilutive financing”, which we can only hope.
Note that we will also revise our assumptions for the launch of the group’s NTEs in the next few days.
