Copyright © BusinessAMBE 2023
In the news:
- The biotech company announces in a press release that bondholders will convert 132 million in receivables into shares. In addition, they will inject an additional
40 million euros into the company. This operation should ensure thatBiocartis has sufficient cash until 2024. The aim is to break even operationally by then.-
According to
Roger Moody , CEO ofBiocartis , a combination of difficult market conditions, the balance sheet and historical cash burn make it impossible to obtain outside financing. - The transaction is expected to close by the end of the year, depending on receipt of certain regulatory approvals.
-
According to
- Shareholders will have a bitter pill to swallow. Management informs that they will likely receive nothing at the time of liquidation.
- Furthermore, unsecured convertible bonds with a coupon of 4 percent and maturing in 2027 will be written down to zero.
- "While disappointing to shareholders and certain bondholders, this transaction is necessary," Moody said. "I am confident that under the new recapitalized holding company and in conjunction with the operational reorganization now being completed, the surviving company will be able to continue on its path to financial health and sustainability."
- According to the company, this operation will have no impact on customers, suppliers, partners and employees.
Some results
Details:
- Sales (product-related) reached
23.5 million euros , which is 10 percent more than in the same period last year. -
The company reported 22 percent growth in oncology cartridge revenues, a 40 percent gross margin on product sales and a 20 percent improvement in EBITDA to
-14.5 million euros .
(nd)
© The Content Exchange, source