TXCell needs €11M by issuing new shares, covers next year’s requirements
January 25, 2017TxCell has moved into action to raise some money, as it wants to raise gross proceeds of about €11 million by issuing new shares with warrants attached.
The Chief Executive Officer (CEO) of the company, Stéphane Boissel, said that the money raised from the issuing new shares will be used to fund the completion of several in vivo proofs of concept with CAR-Tregs and the development of a manufacturing process for these CAR-Tregs.
The company that makes cellular immunotherapy platforms for severe autoimmune and inflammatory diseases has refocused its platform on “high-potential R&D activities” in the past year and a half. Boissel says that the platform of genetically modified regulatory T Cells called CAR-Treg cells are now TxCell’s focus.
“Not only does this technological advance allow us to target new diseases, it also significantly reduces the complexity of the manufacturing process—a key success factor in cell therapy,” says the CEO.
The aim is to complete all the groundwork to launch a first clinical trial by the end of 2018.
Boissel further said that CAR-Tregs could address medical needs in transplantation and autoimmunity and that these areas account for over one hundred diseases and a global market worth more than 100 billion of annual sales, which is growing at a rate of over 5% per year.
The issue will allow TxCell to cover the costs of the CAR-Treg research and manufacturing process development programs, and the TxCell’s ongoing expenses and overhead over the next year.
Planned capital increase can cover requirements for next 12 months
On December 31, 2016, TxCell had €3.5 million with the proceeds from the two tranches of OCABSA notes included. As expected, the company did not have any revenues in the fourth quarter of 2016. TxCell estimates that its operating expenses for 2017 should amount to approximately 13 million euros.
The additional net cash amount required to plug the working capital shortfall and maintain the company’s business activities for the next 12 months is estimated at around €10 million.
The planned capital increase should thus cover the company’s cash requirements for the next 12 months.
The offer will be open to the public in France only.
Invest Securities is acting as Lead Manager and Bookrunner.
