(News Bulletin 247) – The designer of the artificial heart Aeson announced this Monday that it had finalized its appeal to the market, raising, in net, 14.9 million euros. This, however, only offers a short-term respite to his finances.

Carmat’s first fundraising of the year has been finalized. The designer of the artificial heart Aeson announced this Monday that it had completed the capital increase launched a week and a half ago.

This call to the market was necessary for the group founded in 2008 which would otherwise have found itself short of cash at the end of the month.

The company announced that it had raised a gross amount of 16.5 million euros (14.9 million euros net). This amount includes the partial exercise of the over-allotment option, up to 1.5 million euros.

Around 4.1 million new shares were issued at a price of 3.99 euros per share. Degroof Petercam calculates a dilution for existing shareholders of around 17%.

On the Paris Stock Exchange, Carmat shares fell 5.4% around 3 p.m., to 4.21 euros.

>> Access our exclusive graphic analyses, and gain insight into the Trading Portfolio

Discussions with the EIB

The company plans to use the funds raised to strengthen its equity and finance its short-term working capital requirements, in particular to continue the development of its production and sales, as well as its EFICAS clinical trial in France. This study aims to include around fifty patients eligible for transplantation within a network of six French cardiological centers.

“It will allow Carmat to collect additional data on the effectiveness and safety of its artificial heart, as well as medico-economic data to support the value proposition of the prosthesis, and particularly the reimbursement of the device in France,” the company explained in October.

The fact remains that this call to the market only gives a fairly modest breath of fresh air to society. Its financial horizon currently extends until the end of February but could be extended until mid-May in the event of a definitive agreement with the European Investment Bank (EIB).

In mid-January Carmat announced an agreement in principle with the European body to postpone the repayment deadlines for a loan of 30 million euros taken out in 2018 while converting at least one tranche of this loan into capital via a trust. management. Which would be synonymous with potential additional dilution.

Still potential?

Carmat estimates its additional funding needs for the next twelve months at 50 million euros or 35 million euros if discussions with the EIB prove fruitful.

“Carmat anticipates the conclusion of an agreement with its financial creditors by the end of the first quarter of 2024, and also continues to work very actively on securing additional financing in the short term, allowing it to extend its financial horizon “, assures the company.

“The success of this offer is reassuring because Carmat had visibility (financial, editor’s note) until the end of this month. This financing will give them more time to demonstrate growing commercial dynamics in order to possibly attract customers. additional funds. However, it is only a short-term relief (three months)”, summarizes Degroof Petercam, who therefore assumes that an agreement with the EIB will be found.

The Belgian bank has adjusted its forecasts by including the market call announced on Monday as well as a new capital increase with a 30% discount. It arrives at a target price of 11.3 euros compared to 20.8 euros previously (and a current price of 4.21 euros) and reiterates its advice to buy. The bank also continues to expect an annual peak in Aeson sales of 750 million euros on an annual basis.