CROSSJECT : Crossject has announced it has raised €14m in debt to finance its expansion.

The group has raised €14m in new debt, securing the group’s financing ahead of product launches.

We appreciate that it did not have to resort to dilutive instruments.

Since this had been our assumption, no change to our numbers or valuation.

The upside potential remains very significant.

Crossject has announced it has raised €14m in debt to finance its expansion.

The group has announced it has reached an agreement with its historical banks (Caisse d’Epargne and BNP) as well as Société Générale and BPI to raise €14m in debt at maturities ranging from 5 to 10 years. This news comes as a relief, since this means that the group has the firepower to finance its expansion for FY2023, with the first product launches expected this year (Emergency Use Utilization) and the likely market approval of Midazolam in the US (FY23 or FY24).

This also confirms the confidence of the banks in the group’s future and will prevent potential further dilution. Lastly, this is in line with the previous statement from the management according to which they will, as far as possible, avoid resorting to dilutive instruments to fuel growth. Note that, to finance the group’s development, the number of outstanding shares has actually steadily risen in the past few years, from 8.8m in FY17 to 36.35m currently. This is thus good news in that there is no risk of shareholders being further diluted.

No changes to our numbers following this news since they had already factored in bank financing as opposed to the issuance of new dilutive instruments.