CARMAT's Strategic Share Buyback to Strengthen Finances

CARMAT's Strategic Share Buyback to Strengthen Finances

CARMAT, a leading designer of total artificial heart technologies, has made a significant move in optimizing its financial structure. The company announced the buyback of 2 million shares from Matra-Défense, part of Airbus Group, at a nominal price of one euro. This strategic allocation of shares is intended to facilitate the repayment of financial obligations, specifically targeting the Company’s debt to the European Investment Bank (EIB).

Understanding the Buyback

This share buyback not only reflects CARMAT's commitment to maintaining a healthy capital structure but also demonstrates its growing independence in the market. The shares, previously held by Airbus, accounted for around 6.1% of CARMAT's total share capital. The agreement allows Airbus to reduce its stake, reinforcing the notion that CARMAT is now prepared to stand on its own after years of support from its founding partner.

A Strategic Partnership

Since its inception in 2008, Airbus has played a crucial role in CARMAT's development—providing technical guidance and support during the creation and commercialization of the Aeson® artificial heart. In light of Airbus's shift away from this partnership, it allows CARMAT to take greater control over its future while facilitating financial maneuvers to ensure stability.

Details of the Transaction

In a recent transaction, Airbus sold 2 million shares to CARMAT for just one euro, which was significantly below the market value of approximately 1.998 million euros. This buyback was strategically timed as part of the ongoing equitization process to alleviate pressure on cash repayment of the loan acquired from the EIB.

Debt Reduction Through Share Utilization

The shares purchased from Airbus will be utilized in the ongoing equitization of CARMAT's EIB loan. This process involves converting a portion of the loan into equity, thereby easing the cash repayment obligations while concurrently enhancing the shareholder value and minimizing share dilution.

Revising Shareholding Structure

CARMAT's buyback has resulted in a marked change in its shareholding structure. Notable stakeholders have adjusted their shares accordingly, and the Company’s free float has remained strong, representing over half of the total shares. With increased ownership stability from key investors and the reduction of Airbus’s stake, CARMAT is poised for future growth.

Commitment to Success

Stéphane Piat, CEO of CARMAT, expressed optimism about this transaction, emphasizing the firm’s ability to sustain its operations and growth without relying heavily on former partners. He stated that the reduction of Airbus's stake signifies CARMAT's capability to navigate independently in a competitive landscape.

A Bright Future for CARMAT

Looking ahead, CARMAT is focused on the commercialization of the Aeson® artificial heart. This innovative device aims to replace traditional heart transplants and is poised to save numerous lives worldwide. The company is committed to fulfilling its goal of providing advanced therapeutic solutions for patients with severe biventricular heart failure.

Reaffirming Partnerships

Marie-Pierre Merle-Beral, the director representing Airbus on CARMAT's Board of Directors, acknowledged the historic collaboration between the two entities. She highlighted that Airbus's technical expertise has been instrumental in CARMAT's progress, paving the way for groundbreaking technologies in medical devices.

About CARMAT

Founded in 2008, CARMAT is at the forefront of medical technology, manufacturing and marketing the Aeson® artificial heart. The ambition to make Aeson® the premier alternative to heart transplants drives CARMAT’s mission. Currently available in the European Union, Aeson® is recognized for offering significant therapeutic solutions, which are increasingly pivotal given the shortage of viable human grafts.

The company employs a dedicated team of experts who are tirelessly working to transform lives with innovative treatments. CARMAT operates primarily from Vélizy-Villacoublay and Bois-d'Arcy, France, and is listed on the Euronext Growth market in Paris under the ticker ALCAR (ISIN code: FR0010907956).

Frequently Asked Questions

1. What was the primary goal of CARMAT's recent share buyback?

The goal was to optimize their financial structure by repurchasing shares from Airbus to facilitate debt repayment.

2. How many shares did CARMAT buy back from Airbus?

CARMAT bought back 2 million shares from Airbus for a symbolic sum of one euro.

3. Why is the Aeson® artificial heart significant?

Aeson® is the first physiological artificial heart intended as an alternative to heart transplants, aimed at saving lives of patients with biventricular heart failure.

4. How does the buyback affect CARMAT's shareholders?

The buyback is designed to limit dilution for existing shareholders while restructuring CARMAT's financial commitments.

5. What does the future hold for CARMAT following this transaction?

CARMAT is focused on successfully commercializing the Aeson® heart and continuing to grow in the medical technology sector.

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