- Target amount of €5.33 million
- Subscription price: €1.22 per share
- Subscription ratio: 1 new share for every 2 existing shares
- Subscription period: November 3, 2021 to November 18, 2021 inclusive
- Detachment of preferential subscription rights on October 29, 2021
- Subscription commitments received of €4,175,000 (78.26%)
Croissy-Beaubourg (France), October 26, 2021, 7.30 am CEST – THERADIAG (ISIN: FR0004197747, Ticker: ALTER), a company specializing in in vitro diagnostics and Theranostics, announces the launch of a rights issue for a target amount of €5,334,745,24, at a price of €1.22 per share with a nominal discount of 30.05% to the closing price on 21 October 2021, and a ratio of 1 new share for every 2 existing shares (the “Rights Issue”).
Bertrand de Castelnau, CEO of Theradiag, said: “Our strategic refocus on innovation and the commercial development of our two activities, Theranostics and in vitro diagnostics, has enabled us to post very solid growth in recent semesters and be close to breakeven in the first half of 2021[1]. On the basis of buoyant activity for our innovative solutions and a healthier cost structure, we are entering a new phase of profitable growth with the aim of strengthening our global leadership on the biotherapy monitoring market.
Theradiag stands out on this growing biotherapy monitoring market through its expertise and its ties with the healthcare professionals ecosystem in France and abroad. Building on these assets, the Company wants to begin a new chapter in its history through this fundraising operation that will enable it to finance the five projects that will structure its future growth:
- Secure the quality and commercial supply of antibodies via the Humabdiag project developed thanks to the recent partnership with the University of Tours (bioproduction of human monoclonal antibodies);
- Accelerate the internationalization of existing activities in the world’s main healthcare countries, and in particular accelerate sales in the United States (which already account for 19% of Theranostics revenue);
- Develop a technological solution to ensure Near Patient Testing;
- Invest in new therapeutic fields with a substantial medical need and strong growth (e.g. oncology, central nervous system, rheumatology, etc.);
- Thanks to the expertise acquired in autoimmune diseases, reposition and revive FIDIS technology, in particular in the United States, and the activity covering serums used in quality control.
Through our current structure and these five routes of development that present substantial synergies, our unique positioning will provide a response to the substantial demand on the rapidly growing global biotherapy monitoring market.
In this perspective, the planned use of the funds raised in the capital increase will be as follows:
- 50% of the funds will be used to strengthen the sales team by recruiting sales professionals in the United States, France and the rest of the world, to develop the autoimmunity portfolio and to design a marketing campaign for Theradiag products;
- 30% of the funds to research new therapeutic areas, develop new products and adapt near-patient testing;
- 10% of the funds raised to accelerate product registrations in several countries, particularly the United States, in order to increase international sales; and
- Up to 10% of the funds raised, in order to finance Theradiag’s working capital requirements, open subsidiaries and improve production facilities.
If the issue is limited to 75%, the funds will be used as follows:
- 50% of the funds will be used to strengthen the sales team by recruiting sales professionals in the United States, France and the rest of the world, to develop the autoimmunity portfolio and to design a marketing campaign for Theradiag’s products;
- 30% of the funds to research new therapeutic areas, develop new products and adapt near-patient testing;
- 10% of the funds raised to accelerate product registrations in several countries, particularly the United States, in order to increase international sales; and
- 10% of the funds raised to finance Theradiag’s working capital requirements, open subsidiaries and improve production facilities.
Theradiag is thus preparing for a new growth phase that requires the financial means to match its ambitions. We want to involve you in this new phase by launching a Rights Issue of approximately 5.3 million euros (through the issuance of up to 4,372,742 shares at a price of €1.22 each). The funds raised will be allocated to boost our R&D and internationalize our activities in our key geographic areas, which are France and the United States. Our goal is to achieve annual revenue of over €40 million[2] within five years while keeping our costs strictly under control in order to achieve an operating margin of between 20 and 30%. This ambition should be achieved through organic growth and the implementation of the five development axes described. With the exception of public grants and subsidies, the Company does not expect to call on other complementary financing”.
Pierre Morgon, Chairman of the Board, adds: “We are determined to take Theradiag to a new dimension thanks to the added value of our solutions and the current dynamic of the market segments we are targeting. On behalf of the Board of Directors and our entire team, I would like to thank you for your trust in and support for this operation that should put Theradiag on a track to faster growth and contribute to strengthening its leadership position in biotherapy monitoring”.
[1] The Company’s operating result and net result at 30 June 2021 amount to -178 K€ and -92 K€ respectively.
[2] The Company’s sales as at 30 June 2021 was €5.5 million.