- Agreement in principle on the rescheduling of
State-Guaranteed Loans (“PGE”) obtained from BNP Paribas and
Bpifrance
- Extension of the standstill granted by the EIB, BNP Paribas
and Bpifrance until March 22, 2024, to facilitate the conclusion of
a final agreement covering all financial debts by that
date
Regulatory News:
CARMAT (FR0010907956, ALCAR), designer and developer of the
world’s most advanced total artificial heart, aiming to provide a
therapeutic alternative for people suffering from advanced
biventricular heart failure (the “Company” or
“CARMAT”), today provides an update on the renegotiation of
the repayment terms of its loans with its financial creditors.
Conditional agreement in principle with
the European Investment Bank (“EIB”)
As a reminder, CARMAT reached a conditional agreement in
principle with the EIB1 in January 2024 regarding all three
tranches of its loan2. This agreement notably provides for the
postponement of the due date for the first tranche of the loan
(total amount of approximately €15 million3 in principal and
interest) to July 31, 2026, as well as the postponement of the due
dates for the other two tranches, respectively to August 2027 and
October 2028.
If implemented, this agreement would allow CARMAT to avoid
having to repay this loan before July 31, 20264. As a reminder, the
first tranche of the loan was initially due on January 31, 2024,
and the second and third tranches in 2025 and 2026,
respectively.
This agreement in principle is not binding at this stage, as it
is in particular subject to the conclusion of a rescheduling
agreement for the State-Guaranteed Loans (PGE) contracted by the
Company with BNP Paribas (BNPP) and Bpifrance (BPI), for a total
principal amount of €10 million5.
Agreement in principle on the
rescheduling of State-Guaranteed Loans
During February 2024, CARMAT obtained an agreement in principle
from both BNP Paribas and Bpifrance on the rescheduling of the two
PGEs contracted with these banks, the initial maturity of which was
set for the fourth quarter of 2026. This agreement is itself
conditional, notably on the implementation of the agreement reached
with the EIB.
Extension of the standstill to allow
the finalization of a final agreement with all financial creditors
by March 22, 2024
To facilitate the finalization of the discussions with the
banks, the standstill applicable to the principal of the various
loans, which had previously been granted by the EIB, BNPP, and BPI
until February 22, 2024, has been extended until March 22,
2024.
By that date, the Company anticipates reaching a final agreement
on the rescheduling of all its financial debts contracted with the
EIB, BNP Paribas, and Bpifrance.
In such a case, given this agreement and its cash position, the
Company could, based on to its current business plan, fund its
activities until mid-May 2024, and estimates its financing needs
over the next 12 months at approximately €35 million.
However, it is not guaranteed that such an agreement will be
reached by March 22, 2024. In this scenario, which the Company does
not consider the most likely, CARMAT could have its cash runway
reduced to March 22, 2024, and its financing needs over the next 12
months increased to approximately €50 million.
The Company carries on working very actively on other
initiatives to strengthen its equity and alleviate its cash
constraints in the short term.
Stéphane Piat, CEO of CARMAT, comments: "The agreements
in principle reached with the EIB on one hand, and BNP Paribas and
Bpifrance on the other hand, regarding new repayment terms for
their respective loans, represent a very positive development.
I am confident that by March 22, the discussions with these
three banks will get finalised and a final agreement on the
rescheduling of all our financial debts will be reached.
I would like to thank again our three banking partners for their
commitment by our side."
About CARMAT
CARMAT is a French MedTech that designs, manufactures and
markets the Aeson® artificial heart. The Company’s ambition is to
make Aeson® the first alternative to a heart transplant, and thus
provide a therapeutic solution to people suffering from end-stage
biventricular heart failure, who are facing a well-known shortfall
in available human grafts. The world’s first physiological
artificial heart that is highly hemocompatible, pulsatile and
self-regulated, Aeson® could save, every year, the lives of
thousands of patients waiting for a heart transplant. The device
offers patients quality of life and mobility thanks to its
ergonomic and portable external power supply system that is
continuously connected to the implanted prosthesis. Aeson® is
commercially available as a bridge to transplant in the European
Union and other countries that recognize CE marking. Aeson® is also
currently being assessed within the framework of an Early
Feasibility Study (EFS) in the United States. Founded in 2008,
CARMAT is based in the Paris region, with its head offices located
in Vélizy-Villacoublay and its production site in Bois-d’Arcy. The
Company can rely on the talent and expertise of a multidisciplinary
team of circa 200 highly specialized people. CARMAT is listed on
the Euronext Growth market in Paris (Ticker: ALCAR / ISIN code:
FR0010907956).
For more information, please go to www.carmatsa.com and follow
us on LinkedIn.
Name: CARMAT ISIN code:
FR0010907956 Ticker: ALCAR
Disclaimer
This press release and the information contained herein do not
constitute an offer to sell or subscribe, nor a solicitation of an
order to buy or subscribe to CARMAT shares in any country. This
press release may contain forward-looking statements by the company
regarding its objectives and prospects. These forward-looking
statements are based on the current estimates and anticipations of
the company's management and are subject to risk factors and
uncertainties such as the company's ability to implement its
strategy, the pace of development of CARMAT's production and sales,
the pace and results of ongoing or planned clinical trials,
technological evolution and competitive environment, regulatory
changes, industrial risks, and all risks associated with the
company's growth management. The company's objectives mentioned in
this press release may not be achieved due to these elements or
other risk factors and uncertainties.
Significant and specific risks of the company are those
described in its universal registration document filed with the
French Financial Markets Authority (Autorité des marchés financiers
- the “AMF”) under number D.23-0323. Readers' attention is
particularly drawn to the fact that the company's current cash
runway is limited to the end of March 2024. Readers and investors
are also advised that other risks, unknown or not considered
significant and specific, may or could exist.
Aeson® is an active implantable medical device commercially
available in the European Union and other countries recognizing CE
marking. The Aeson® total artificial heart is intended to replace
the ventricles of the native heart and is indicated as a bridge to
transplant for patients suffering from end-stage biventricular
heart failure (INTERMACS classes 1-4) who cannot benefit from
maximal medical therapy or a left ventricular assist device (LVAD)
and who are likely to undergo a heart transplant within 180 days of
implantation. The decision to implant and the surgical procedure
must be carried out by healthcare professionals trained by the
manufacturer. The documentation (clinician manual, patient manual,
and alarm booklet) should be carefully read to understand the
features of Aeson® and the information necessary for patient
selection and proper use (contraindications, precautions, side
effects). In the United States, Aeson® is currently exclusively
available as part of an Early Feasibility Study approved by the
Food & Drug Administration (FDA).
__________________________________ 1 Press Release from January
12, 2024, regarding the conditional agreement in principle with the
EIB 2 Under a contract concluded on December 17, 2018, the Company
secured a loan from the EIB amounting to €30m disbursed in 3
tranches of €10m each, on January 31, 2019 (the "first tranche"),
May 4, 2020 (the "second tranche"), and October 29, 2021 (the
"third tranche" and, together with the other tranches, the
"tranches"), each tranche to be repaid, in principal and interest,
5 years after its disbursement to the Company. 3 Principal of €10m
and interest of approximately €5m 4 Except in cases of default or
early repayment, which would remain unchanged. 5 Two
State-Guaranteed Loans (PGE) contracted in the fourth quarter of
2020, respectively from BNP Paribas and Bpifrance, with a principal
amount of €5m each, amortizable from the fourth quarter of 2022 to
the fourth quarter of 2026.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240221393920/en/
CARMAT Stéphane Piat Chief Executive Officer
Pascale d’Arbonneau Chief Financial Officer Tel.: +33 1
39 45 64 50 contact@carmatsas.com
Alize RP Press Relations
Caroline Carmagnol Tel.: +33 6 64 18 99 59
carmat@alizerp.com
NewCap Financial Communication & Investor
Relations
Dusan Oresansky Jérémy Digel Tel.: +33 1 44 71 94
92 carmat@newcap.eu
Carmat (EU:ALCAR)
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