CROSSJECT Plans Significant Capital Increase for Growth
CROSSJECT is gearing up for an important milestone as it prepares to launch a capital increase that could reach about 5 million euros. This initiative aims to enhance both commercial and production activities, particularly in light of the expected Emergency Use Authorization (EUA) for its innovative product, ZEPIZURE®.
Details of the Capital Increase Announcement
The proposed capital increase, referred to as 'the Offer', may expand to approximately 5.8 million euros, should the extension clause be enacted. To ensure financial backing, Gemmes Venture, the reference shareholder, has expressed its intention to guarantee the capital increase by covering cash needs that would amount to 75% of the initial offering.
In addition, Heights Capital Management is lending its support to this endeavor, which reflects confidence in CROSSJECT's potential and future prospects.
Strategic Objectives for the Offer
Patrick ALEXANDRE, the CEO of CROSSJECT, articulated the company's objectives, emphasizing the urgency to secure financial flexibility as the FDA filing for ZEPIZURE® progresses. This funding aims to facilitate the company's commitments to its U.S. partner while also establishing a robust commercial presence in the United States.
Plans for Fund Utilization
The anticipated Offer would be executed through the issuance of new shares, preserving preferential subscription rights for current shareholders. According to the authorization from the Supervisory Board and the resolution from the Annual General Meeting, the capital increase will follow these guidelines.
The forthcoming transaction will be accompanied by a press release detailing the exact terms and timeline. It’s noteworthy that CROSSJECT will also suspend the use of dilutive instruments, such as warrants and convertible bonds, during this capital increase phase.
Funding Allocation Breakdown
CROSSJECT has a clear plan for the allocation of funds raised through the capital increase. Approximately 60% of the proceeds will concentrate on the final development stages of ZEPIZURE®, allowing for production initiation and inventory buildup. The remaining 40% will support R&D efforts for other promising projects, specifically ZENEO® Adrenaline and ZENEO® Hydrocortisone, while also covering administrative costs.
In case the Offer reaches only 75% of its target, the net proceeds will be allocated proportionately, with an emphasis on ZEPIZURE® activities. By ensuring the proper capital structure, CROSSJECT aims to maintain cash flow stability throughout 2025, preparing for anticipated revenue from its U.S. partner.
Support from Significant Shareholders
The commitment from Gemmes Venture, which holds a 26% stake in CROSSJECT, underscores shareholder confidence in this capital increase. Additionally, Heights Capital Management has shown interest in subscribing to the capital increase by offsetting its financial claims against the company.
Risk Factors to Consider
CROSSJECT also cautions potential investors about certain risk factors. The firm has made its 2024 Annual Report available for review, outlining the challenges it may face in its operations.
Documentation and Prospectus Requirements
Since the expected capital raise is under 8 million euros within a 12-month window, the Offer will not necessitate a prospectus approval from the regulatory body, AMF.
About CROSSJECT
CROSSJECT SA (Euronext: ALCJ) is an innovative specialty pharmaceuticals company that specializes in developing emergency medicines through its pioneering needle-free auto-injector platform, ZENEO®. Currently, CROSSJECT is in advanced regulatory stages for ZEPIZURE®, a rescue therapy for epileptic crises, supported by a significant partnership with BARDA worth $60 million.
The versatility of the ZENEO® platform is pivotal as it enables patients and untrained caregivers to administer life-saving medications swiftly, either through skin or clothing. The company is also focused on further expanding its product offerings to address allergic reactions, adrenal insufficiencies, and other emergency medical needs.
For additional information, interested parties can reach out to CROSSJECT's Investor Relations at investors@crossject.com.
Frequently Asked Questions
What is the purpose of CROSSJECT's capital increase?
The capital increase aims to fund the development and production of ZEPIZURE®, enabling CROSSJECT to meet regulatory approvals and enhance its market presence.
Who is backing the capital increase?
Gemmes Venture, a significant shareholder, is guaranteeing a portion of the capital increase, while Heights Capital Management is also providing support.
How will the raised funds be allocated?
Funds will be divided predominantly with 60% allocated for ZEPIZURE® development and production, and 40% for other R&D projects and general expenses.
What are the risk factors associated with the Offer?
CROSSJECT has outlined various risk factors in its 2024 Annual Report, available for review to inform potential investors of any challenges the company may face.
What is ZEPIZURE®?
ZEPIZURE® is an injectable emergency treatment designed for the management of epilepsy crises and is currently undergoing advanced development for regulatory approval.
