Carmat falls on uncertainty over EIB financing

Carmat SA

29/01/2024 09:54

** Shares in Carmat fall 8% after it completes a capital
increase, as uncertainty over short-term financing from the
European Investment Bank (EIB) threatens the French artificial
heart maker's operations
    ** "Repayment of the first tranche of EIB debt poses a
significant risk to the company's cash position," Portzamparc
analyst Mohamed Kaabouni says
    ** The extension to mid-May is only made possible if EIB
agrees to postpone the reimbursement of the first tranche of the
loan, which Carmat anticipates for Q1 2024
    ** If no agreement is found, Carmat will only be able to run
its activities until Feb. 22, the company says
    ** It would then face a 12-month capital shortfall of 50 mln
euros ($54.15 mln), Degrood Petercam analyst Laura Roba says
    ** Carmat raised 16.5 mln euros via a public offering
completed on Monday, which Roba says provides a "three-month
relief"
    ** "The company still needs between EUR 35-50m – depending
on the outcome of the discussions with the EIB – to bridge the
gap until next year," she adds

($1 = 0.9234 euros)

 (Reporting by Gaëlle Sheehan)
 ((gaelle.sheehan@thomsonreuters.com; +48 58 7785110;))