Carmat warns cash running low after sales miss, loses quarter of market cap

Carmat SA

26/09/2023 12:43

(Updates share move and price, adds analyst comment)
    ** Shares in Carmat  ALCAR.PA  plunge 27% after the French
artificial heart maker on Monday said it would miss FY sales
outlook amid supply issues and warned it could run out of cash
by the end of October
    ** It reports H1 sales of 600,000 euros ($635,820) and
forecasts a further 4-6 million euros in H2; this would be below
its target of 10-13 million euros from February
    ** The company says it's actively looking for options for
securing cash beyond October 2023
    ** "The big shock comes, in my opinion, from the
disappointment with this H1 which should mark, finally, the
departure of commercial activity," Portzamparc analyst Mohamed
Kaabouni says in an e-mailed comment
    ** Kaabouni notes Carmat enjoys strong support from its
historic shareholders, and has "disruptive technology currently
unrivaled in a colossal market"
    ** He adds the market will likely give Carmat the means to
continue even if the conditions will be very unfavorable for the
company
    ** Earlier in the day, the stock hit an all-time low of 3.6
euros per share; current price of 5.4 euros is still clearly
lower than on any other trading day

($1 = 0.9437 euros)

 (Reporting by Michal Aleksandrowicz)
 ((michal.aleksandrowicz@tr.com))