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Home Headlines Artificial heart maker Carmat’s shares slide on $11.5 million capital hike
2024 09 18T060700Z 1 LYNXMPEK8H04O RTROPTP 4 FRANCE HEART CARMAT

Artificial heart maker Carmat’s shares slide on $11.5 million capital hike

by Jessica Weisman-Pitts
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(Reuters) -Artificial heart maker Carmat announced a capital increase of an initial 10.3 million euros ($11.5 million) on Wednesday to cover “short-term working capital needs”, sending its shares down more than 13%.

The French firm, which has launched a series of capital increases since September 2023, after flagging supply chain issues that threatened its survival, said the funding will support its activities until at least the end of 2024.

“The capital increase with a priority period for shareholders that we are launching today is crucial to strengthen our short-term financial structure”, CEO Stéphane Piat said in a statement.

Shares in Carmat were down 13.3% to 1.77 euros at 0708 GMT after the announcement of the issue at 1.60 euros per share.

Carmat said its financing needs to the end of September 2025 will be between 36 million and 38 million euros after the move.

BNP Paribas analyst Mohamed Kaabouni said in a note that Carmat’s latest capital increase was to be expected as the first step of a larger global offering.

“It will give the company the means to finance itself until the end of the year, and eventually to achieve operational catalysts such as the confirmation of the new sales guidance,” the analyst added.

Earlier this month, Carmat cut its full year sales guidance to between 8 million and 12 million euros, from 14 million euros previously, due to markets dynamics and seasonality.

($1 = 0.8994 euros)

(Reporting by Stéphanie Hamel; Editing by Tom Hogue and Alexander Smith)

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