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Crossject

CR
Bloomberg   ALCJ FP
Supergenerics  /  France  Web Site   |   Investors Relation
Things get moving
Target
Upside 114%
Price (€) 4.58
Market Cap (€M) 166
Perf. 1W: 8.27%
Perf. 1M: 32.8%
Perf. 3M: 20.1%
Perf Ytd: 39.0%
10 day relative perf. to stoxx600: 5.19%
20 day relative perf. to stoxx600: 31.9%
Financing issue 28/11/2018

A €3.9m capital increase

Fact

Crossject announced it would issue new shares, a maximum of 3.4m with subscription rights, to be listed before year-end (28 December), with total potential proceeds of c.€3.9m.


Analysis

In short, the subscription period will be 3-14 December. Three subscription rights will give the right to subscribe to one new share at €1.16, thus a theoretical price for subscription rights of €0.14 based on yesterday’s closing price. Gemmes Venture, the historic and main shareholder of Crossject, has committed itself to subscribing a number of shares of at least 24% (its stake in Crossject) and enough shares to ensure that 75% of the issue is subscribed in any case, with the possibility to subscribe up to 100% of the issue or enough shares to ensure that 100% of the issue is subscribed. The group also indicates that its financing needs post this capital increase are €11m over the next twelve months, to be covered by incentives, tax credits and the commercial agreements currently being negotiated (upfront fees). If these financings are not enough, it is also considering and negotiating non-dilutive financings. Altogether, the announcement implies that the total number of shares will rise from c.9.3m to c.12.7m, while the net debt will decrease by c.€4m, if the issue is 100% subscribed.


Impact

We will integrate the issue in our model, with a target price that will go down since the impact of the dilution is undoubtedly greater than the positive one on the group’s net debt level. That said, the short-term visibility will increase and management can focus on the ongoing commercial agreements, which we see as positive news.


Updates

28 Nov 18 Financing issue
A €3.9m capital increase

23 Oct 18 Other news/comments
Bond conversion

27 Sep 18 Earnings/sales releases
H1 18: insignificant; some more time needed to ...

05 Sep 18 Target Change
On its way to reaching the market

17 May 18 Latest
Business update

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