Crossject has announced the issuance of convertible bonds.
It also grants free subscription rights to existing shareholders.
The financing of FY22 is thus secured and gives the group time to reach the market.
We will fine-tune our model and integrate this issuance.
Crossject has just announced the issuance of convertible bonds and the free granting of subscription rights to its shareholders.
In an unsurprising move, the group announced it has issued €7.5m in convertible bonds (no coupon, issued at 92% of its nominal value and maturing on 31 December 2024), including €1.5m by Gemmes Venture, its main shareholder, and other qualified investors. The conversion price will be the minimum between €3.30 and 92% of a weighted average share price during a period before the conversion. The group also announced that existing shareholders (as at 31 December 2021) will be granted free subscription rights, every 20 rights enabling them to buy a share at a price of €3 between 12 January and 30 June 2022. This could lead to the issuance of 1.3m shares and a strengthening of shareholders’ funds by €3.9m.
Altogether (i.e. including convertible bonds) the group could raise as much as €11.5m during FY22 (without taking into account potential licensing revenues or subsidies) which should rather easily fill its needs for the coming year.
Looking beyond FY22, the visibility is less clear since it is still too early to assess the potential cash inflows that could benefit the company during the coming year. However, we take the news as rather good since it secures FY22 and shows once again the confidence of its main shareholders.
We will adjust our numbers to take into account the convertible issuance.
