Theranexus: cash position under pressure, share price falls

(CercleFinance.com) - Theranexus shares tumbled on the Paris Bourse on Friday, in the wake of a trading update marked by a sharp reduction in its cash position.


The biopharmaceutical company explained that, as of June 30, it had available cash of 1.8 million euros, compared with 3.1 million euros three months earlier, on March 31.

In its press release, the company points out, however, that the research tax credit (CIR) for the 2023 financial year, amounting to 785,000 euros, had not yet been received and was therefore not included in this figure.

However, Theranexus has decided to set up a new equity financing line in preparation for its Phase 3 trial in juvenile Batten disease.

This line, for a maximum total amount of 2.5 million euros over 24 months, will be fully underwritten by the investment company Iris via the issue of warrants giving entitlement to the subscription of bonds redeemable in new shares.

With the cost of the Phase 3 study estimated at around nine million euros up to registration, the biopharmaceutical company will nevertheless need to find other sources of financing to start this pivotal study.

At around 12:20 p.m., the share price fell by more than 32% on the Paris Bourse following this announcement.

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