Carmat slips as it agrees to postpone EIB loan payment

Carmat SA

12/01/2024 09:24

** Shares in Carmat  ALCAR.PA  are down 11.7%, paring losses
after tumbling nearly 19%, after the French artificial heart
maker said it was postponing the repayment of its EIB loan
    ** Carmat says it reached a conditional agreement in
principle with EIB on new loan repayment terms that would lead
to a significant extension of the maturity date of three
tranches of the loan
    ** Brokerage Degroof Petercam says the company had to find a
solution to postpone this repayment given its current cash
position, and notes the agreement will be highly dilutive
    ** "It also does not solve the cash runway issue which
remains a very short-term concern since the company has enough
cash to finance its operations only until end of January 2024,"
the broker adds
    ** Carmat expects to sign the final contract relating to the
agreement in principle by the end of Q1
    ** Degroof hopes to receive an update soon, and puts its PT
and rating for Carmat under review
    ** The shares are on track for their worst day since Dec. 13

 (Reporting by Olivier Cherfan)
 ((olivier.cherfan@thomsonreuters.com))