Avantium drops as analyst warns its new capital increase won't be enough

Avantium NV

06/04/2022 08:59

** Shares in Avantium  AVTX.AS  are down 6.8% after the
Dutch chemical technology company launched a capital increase of
45 million euros ($49.01 million)
    ** Maximum subscription price has been set at 4.60 euros per
new share vs. Tuesday's closing price of 5.01 euros
    ** According to the bookrunner, 60% of the proceeds will be
used for Avantium's plantMEG technology, 10% for biorefinery and
CO2 based chemicals and polymers technologies, and 30% for
general corporate purposes, working capital and overall funding
    ** "We remain worried about Avantium's large future
financing needs and long timelines to reach profitability," KBC
("reduce") says in a note
    ** The brokerage estimates Avantium will need "significant
additional financing" beyond the targeted 45 million euros of
the capital increase 
    ** Avantium announced last week it had reached financial
close for its FDCA plant and that it had signed a 90 million
euros debt financing package with a consortium of Dutch banks
    ** The stock is down 13.3% year-to-date

($1 = 0.9182 euros)

 (Reporting by Valentine Baldassari)
 ((valentine.baldassari@tr.com))