Crossject indicated that it would grant shareholders free warrants (BSA). Each share held could translate into one warrant, with nine warrants entitling holders to get a share in Crossject at €1.80.
The move was expected and the main shareholder (Gemmes Venture, 26.74%) has already indicated it will exercise its warrants. Altogether, should all warrants be exercised, this would lead to the issuance of 18,447k warrants and 2,049k shares, or €3,689m. The warrants will be granted on 18 July and exercisable between 18 July and 10 December 2019. The maximum dilution will be c.11.11%. The (expected) move is welcomed insofar as it solves the financing issue (on top of advances, subsidies, CIR, commercial agreements, etc.), the company estimating it needs €12m in the next 12 months. However, Crossject is also working on additional (ideally non-dilutive) means to increase its financial firepower to finance its development programme before the market launch of Zeneo.
The impact will be minor on our numbers, the potential extra-dilution being compensated by the cash inflow.
