The group announced the issuance of a second tranche of bonds to Heights Capital, related to the February 2024 issuance, and amended the bond conditions. Overall, this will not significantly impact our figures, as the additional dilution is at least partially or fully offset by the cash inflow.
Crossject announced the issuance to Heights of a second tranche with a nominal value of €2,496,400, at an issue price of 90% of the nominal value, equating to €2,246,400. The group also amended the terms and conditions of the OCAs issued on 28 February 2024.
Crossject has revised the terms of the first tranche as follows: the maturity date for the OCAs has been extended from 28 February 2027 to 28 December 2027; the bi-monthly amortisation per OCA has been reduced from €6,000 to €4,500, with certain exceptions; OCA holders’ right to request early redemption has been modified, allowing up to two redemption dates without requiring Crossject to pay the final redemption in shares; the conversion price of the OCAs is now the lower of €1.677 or 110% of the market value on the issue date of the new tranche, with a minimum of €1; and the period for conversion price adjustment in the event of securities issuance for a minimum gross amount of €5m has been extended to include 28 February 2027. The new tranche of OCAs, with a nominal amount of €2.246m, is not contingent on FDA/EUA approval.
The conversion price for all OCAs, if converted at the OCA holders’ discretion, is set at €1.677, which is the lower of €1.677 or 110% of the market value on the issue date of the new tranche.
In summary, the potential number of new shares from converting all OCAs ranges from 5,251,905 to 8,807,045. Including the recent capital increase in December 2024, which has been accounted for, the total number of shares could rise from approximately 44 million to a maximum of 55 million. Based on our projections of share price trends, we estimate 50.7 million shares, which does not significantly affect our target price. However, we find these operations and amendments somewhat complex given the limited amounts involved.
Our forecasts remain largely unchanged in light of the news. We will account for a degree of dilution, which will be partially or fully offset by the cash inflow.
