TME Pharma: financing secured, but risk persists

(CercleFinance.com) - TME Pharma announced on Tuesday evening that it had secured 2.
6 million euros in financing to support its activities for seven months, i.e. until June 2025.

The biotech - specialized in the development of new therapies for the treatment of aggressive cancers - explains that this period will enable it to bring its current initiatives to a successful conclusion.

These include in-licensing, additional financing, a spin-off or strategic transactions for its two products NOX-A12 (brain cancer) and NOX-E36 (ophthalmic diseases).

In detail, TME - whose financial horizon has so far been limited to January 2025 - plans to launch a public offering without preferential subscription rights for a total of 52,000.000 new shares, which will be reserved exclusively for the company's shareholders.

For every four shares held on the record date of December 10, existing shareholders will have the right to purchase five new shares at a price of 0.05 euro per share, representing a discount of 67.8% to last night's share price.

In addition to the significant discount and dilutive effect of the fundraising, TME Pharma warns that there is a "significant" risk that the company will be unable to continue as a going concern, and may even face liquidation or dissolution if it fails to conclude a license, new financing or strategic transaction by June.

Following these announcements, TME Pharma shares fell by almost 40% mid-day on Wednesday on the Paris Bourse.

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