Nicox specializes in ophthalmology
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(News Bulletin 247) – The company issued 6.85 million shares to which are attached as many subscription warrants. This call for the market should make it possible to extend the group’s liquidity horizon until mid-May 2024.

Nicox appeals to the market to broaden its financial horizon. The biotechnology company specializing in ophthalmological treatments announced on Tuesday a fundraising through a capital increase of 6.85 million shares to which are attached as many rights to share subscription warrants (BSA). This market call was made via a private placement.

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The new shares were issued at a price of 1.46 euros per share, a discount of 14% compared to Monday’s closing price of 1.70 euros. The BSAs can be exercised at a price of 1.70 euro.

The gross proceeds from the issue of new shares – therefore not counting the BSAs – is 10 million euros, ie 8.9 million euros in net proceeds.

A cash position of more than 30 million euros

“In parallel with this fundraising, Nicox has exercised the option to extend for an additional six months, until January 1, 2024, the interest-only payment period for the Kreos Capital loan. The repayment of the capital will therefore resume on February 1, 2024,” the company also announced.

With the capital increase and the postponement of the payment deadline for the loan principal to Kreos Capital, the company estimates that it has extended its liquidity horizon to mid-May 2024, compared to mid-November 2023 previously.

This does not include the issue of warrants which could bring up to 11.6 million euros in additional capital. After this call on the market, Nicox has a cash position of approximately 31 million euros.

Funds allocated to NCX 470

Obviously, the whole issue of these products results in a dilution for the shareholders. According to a table provided by the company, on a non-diluted basis, a shareholder holding 1% of the capital before the capital increase would end up with a share of 0.86%. Including the issue of all BSAs, this share would fall to 0.76%, on a non-diluted basis.

The proceeds from the sale of the capital increase excluding BSA will be allocated to the development of NCX 470, an eye drop currently in phase 3 clinical trials, the last step before potential marketing, which should make it possible to treat patients with glaucoma at open angle or ocular hypertension.

On the stock market, the Nicox share fell logically under the weight of the dilution, and thus lost 12.4% to 1.49 euros around 3:30 p.m.