On Monday, shares in biotech company TME Pharma suffered one of the steepest falls on the Paris Bourse following the announcement of a 2.7 million euro capital increase.

At around 11:15 a.m., shares in the specialist in new cancer therapies targeting the tumor microenvironment were down more than 17%.

The company announced on Friday evening the launch of a 100% guaranteed capital increase of 2.7 million euros via the issue of new shares combined with warrants.

The operation could potentially raise an additional gross amount of 2.2 million euros to secure the financing needed to reach its regulatory milestones in 2024.

In detail, shareholders will receive one preferential subscription right (DPS) for each share held, with three DPS giving entitlement to subscribe for 5 'Y' ABSAs (five new shares with five attached Y warrants) based on a unit subscription price of 0.25 euros.

ABSAs are shares to which warrants are attached. There are two types of ABSA: 'Y' ABSAs, containing one new share and one Y warrant, and 'Z' ABSAs, containing one new share and one Z warrant.

The subscription period will run from November 30 to December 11.

TME Pharma explains that it expects the capital increase to provide it with sufficient liquidity to continue its activities in line with its current budget until the beginning of May 2024.

This deadline could be extended to July 2024 if the associated warrants expiring in February 2024 were exercised in full, and to September 2024 if both series of warrants were exercised in full.

These funds are to be used to further mature the data in the ongoing Phase 1/2 trial in glioblastoma in order to advance discussions with the US Food and Drug Administration (FDA) beyond regulatory milestones.

The proceeds should also enable it to intensify interactions with investors and potential industry partners.

Copyright (c) 2023 CercleFinance.com. All rights reserved.