Carmat (PA:ALCAR) raised €52.9m through the sale of 2.645m shares at €20.0 per share. We estimate that this should increase the firm’s cash runway into Q219, or potentially through the completion of the ongoing EU pivotal study of the Carmat heart. Our rNPV valuation is €643m, up from €627m previously. Due to increased share count, our per-share equity valuation has decreased to €77.34 (from €106.98, previously).
We expect runway extended into Q219 at minimum
Carmat announced on 12 December that it had raised €52.9m (with full exercise of all over-allotments) through the sale of 2.645m shares at €20.0 per share. This reflects a c 24% discount to the 4 December closing share price of €26.36. We estimate that Carmat will have €54.5m year-end 2017 net cash, which we believe should extend its operating runway into Q219, and potentially past the completion of the ongoing EU pivotal study of the Carmat heart. Carmat has indicated in public documents that it will allocate about 52% of the financing’s proceeds towards the continuation of the EU pivotal study, 30% towards the development of new production capacity, 11% towards a future US study and 7% towards future commercial launch activities.
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