(News Bulletin 247) – The biotechnology company is in sharp decline on the Paris Stock Exchange after an update on its financial situation. Poxel declared on Monday that it would no longer be able to finance its operations and investment expenses from the end of the first quarter of 2025.

The start of the week is rough for Poxel. The biotechnology company specializing in innovative treatments against metabolic diseases plunges another 20% this Monday afternoon to 0.1538 euros, after having dropped almost 40% in the first exchanges to sink to new heights. historic lows on the Paris Stock Exchange.

Poxel warned this Monday morning about its financial situation. So much so that the future of the biotechnology company is now taking shape, which is fueling these severe declines in the penny stock. The company indicated that it would no longer be able to finance its operations and capital expenditures from the end of the first quarter of 2025.

Reduced financial visibility

The biotechnology company explains that this situation is linked to the non-adoption of certain financial resolutions during its general meeting which was held on November 28. One of which is particularly detrimental to the continuity of society. It concerned the possibility of issuing new shares to repay Oranes (Bonds redeemable in new and existing shares) due to expire on December 20, 2024.

This resolution not having been adopted, this results in the repayment of the Oranes held by the financial company Iris being due, at the same time making the repayment of the IPF Partners bond loan due. This refusal therefore places the company in an “unprecedented, uncertain and potentially very negative situation for the continuation of its activities”.

In its press release, Poxel indicated that it planned to organize next February, a new Combined General Meeting which “will allow Poxel shareholders to take their responsibilities in relation to the financial situation of their company, its operational continuity and their interests as shareholders.

However, at the end of September, Poxel reassured the market, by declaring that it had extended its financial visibility until the end of 2025. The biotechnology company explained that it had entered into an agreement with the American investment company OrbiMed aimed at monetizing part of the royalties from sales of its antidiabetic Twymeeg, its flagship product, to the tune of $50 million in the form of a bond issue.

The company had also indicated that the amount of the bond loan paid by OrbiMed will be used to reduce indebtedness vis-à-vis IPF Partners and the banks with which Poxel had taken out a State Guaranteed Loan.

Poxel then assumed the inclusion of the full residual drawdown of the equity financing line set up with Iris, which should initially allow it to extend its financing horizon until the end of 2025.