(News Bulletin 247) – Carmat announced yesterday evening that it has extended its financing horizon until mid-October 2023 thanks to non-dilutive financing of 13.2 million euros obtained from the French State.

This line of funds, entered into as part of the ‘France 2030’ investment plan, aims to support the company in increasing its production capacity for Aeson artificial hearts, with the aim of increasing it to 1,000 units per year. over a five-year horizon.

The funding consists of a €7.9 million grant and a repayable advance of €5.3 million, with a first tranche of €3.3 million expected to be received no later than Q3 2023.

Subject to the success of the project, the reimbursement of the repayable advance will be made over a period of five years, starting on September 30, 2029.

Based on the certain financial resources at its disposal, including the first tranche of 3.3 million euros, Carmat estimates that it will be able to finance its activities until mid-October 2023, without recourse to new financing.

The company also says it will continue to work on additional financing options in order to extend its financial visibility beyond this horizon.

In a reaction note, analysts at Degroof Petercam refer to a ‘breath of fresh air’ for the company, which leads them to renew their buy recommendation on the stock, with an adjusted price target of 21 euros.

The announcement puts an end to several weeks of uncertainty since the group had indicated in February exploring several financing options are being explored while highlighting a “difficult” environment.

Listed on the Paris Stock Exchange, the Carmat share fell 0.3% late Tuesday morning.

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