Crossject Secures €7 Million Through Capital Increase and Warrants

Crossject Secures Funding Through Capital Increase and Warrants

DIJON, FRANCE – Crossject, a pioneering specialty pharmaceutical company, is embarking on an exciting journey to secure a significant capital increase and issue warrants, aimed at raising at least €7 million in gross funding. The company specializes in developing life-saving medications using its innovative ZENEO® auto-injector technology designed for emergency situations.

Engagement with Key Investors

In this endeavor, Crossject is collaborating with prominent financial entities, specifically Maxim Group LLC as the lead placement agent and Invest Securities as the co-placement agent. This strategic move positions the company to tap into private placement opportunities with designated categories of investors, enhancing its financial foundation and operational capabilities.

Details of the Capital Increase

The capital increase is set to initiate the issuance of new ordinary shares, referred to as New Shares, which will be available exclusively to a selected group of investors. This initiative is in line with the shareholder resolutions approved during the recent General Meeting, ensuring that the transaction respects the established frameworks for shareholder engagement.

Warrants Issuance for Enhanced Funding

Alongside the capital increase, a corresponding issuance of warrants will allow investors to subscribe for additional ordinary shares. This dual approach is designed to optimize funding while providing investors with flexible options for participation in the company's growth trajectory.

Use of Proceeds for Strategic Growth

The anticipated gross proceeds of at least €7 million will empower Crossject to further its critical projects. The deployment of these funds is planned with strategic intent:

• Approximately 50% will be directed toward advancing the development of ZEPIZURE®, along with covering associated operational costs that complement ongoing R&D efforts.
• About 20% is set aside for enhancing investment activities in manufacturing facilities, ensuring that production aligns with development needs and initial market demand for ZEPIZURE®.
• The remaining 30% will finance R&D for other promising projects, including ZENEO® Hydrocortisone and ZENEO® Adrenaline, while also addressing obligations to financial partners and supporting general administrative expenses.

This influx of capital is intended not only to support ongoing regulatory objectives, notably achieving critical manufacturing milestones for ZEPIZURE® but also to establish a solid financial footing in anticipation of greater market aspirations.

Additional Amendments to Financial Agreements

In a concurrent strategic development, Crossject aims to amend existing convertible bonds with Heights Capital Management. Notably, this includes the potential issuance of a second tranche of approximately €2.5 million, no longer contingent on specific regulatory authorizations from U.S. entities, alongside an extension of the maturity of the existing bonds.

Challenges and Future Outlook

Crossject acknowledges the challenges that lie ahead, particularly associated with market conditions and the inherent risks involved in financing and development. However, the leadership remains optimistic about the company's capacity to innovate and navigate these complexities, particularly with ZEPIZURE® on the horizon, an anti-epileptic rescue therapy with a multi-million dollar contract backing.

Frequently Asked Questions

What is the goal of Crossject's capital increase?

Crossject aims to raise at least €7 million to fund the development of its pharmaceutical projects, primarily focusing on ZEPIZURE®.

How will the proceeds from the capital increase be utilized?

The funds will be allocated to the development of ZEPIZURE®, manufacturing enhancements, and ongoing R&D for other products in the pipeline.

Who are the placement agents for this transaction?

Maxim Group LLC is the lead placement agent, with Invest Securities acting as the co-placement agent for the capital raise.

Are there plans for future investments beyond this capital increase?

Yes, Crossject is exploring additional financing avenues, both dilutive and non-dilutive, to extend its cash runway into the future.

What is ZEPIZURE®, and why is it significant?

ZEPIZURE® is a promising epileptic rescue therapy utilizing the innovative ZENEO® autoinjector, highlighting Crossject's commitment to addressing critical medical needs.

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