Successful € 5 Million Capital Increase for GeNeuro
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GeNeuro, a Geneva-based biopharmaceutical company focusing on treatments for neurodegenerative and autoimmune diseases, including multiple sclerosis (MS), amyotrophic lateral sclerosis (ALS), and severe neuropsychiatric consequences of COVID-19 (post-COVID), has successfully completed a €5 million capital increase.
The increase involved a private placement of 4,666,901 new GeNeuro ordinary bearer shares for specialized and strategic investors, as well as a public offering through the PrimaryBid platform in France, consisting of 95,004 new GeNeuro ordinary bearer shares for individual investors. The new shares, each with a nominal value of CHF 0.05, were offered at a subscription price of €1.05 per share. Bryan, Garnier & Co served as the Sole Global Coordinator and Bookrunner for the transaction.
Jesús Martin-Garcia, CEO of GeNeuro, commented on the successful capital increase, stating that it provides the company with the means to conclude the ongoing phase 2 study in post-COVID, with results expected in June 2024. The funds will also extend the company’s financial visibility. GeNeuro’s post-COVID program with temelimab represents a personalized therapeutic approach, targeting patients positive for the pathogenic W-ENV protein. Success in the study would mark a significant advancement, introducing the first foundational treatment for a broad population of post-COVID patients, addressing severe syndromes.
As part of the private placement, GNEH SAS, a subsidiary of the Mérieux Institute and Servier, existing shareholders of GeNeuro, subscribed to 2,087,451 and 1,135,070 new shares, respectively. Post-offering, GNEH will hold 40.2% of the capital and 40.5% of voting rights on a non-diluted basis, while Servier will have 8.4% of the capital and 8.5% of voting rights on a non-diluted basis.
The net proceeds from the offering, in addition to the company’s existing cash reserves, will primarily be utilized to complete funding for the ongoing Phase 2 study in post-COVID, with results anticipated in June 2024, and to extend the company’s financial visibility until the early third quarter of 2024. GeNeuro is concurrently engaged in discussions regarding multiple sclerosis, seeking potential partners to define the optimal development path, combining an effective anti-inflammatory treatment for relapses with temelimab to target neurodegeneration and disability progression.
GeNeuro’s mission is to develop safe and effective treatments for neurological disorders and autoimmune diseases, such as multiple sclerosis, by neutralizing the causative factors encoded by HERVs, which account for 8% of human DNA. GeNeuro is based in Geneva, Switzerland, and has R&D facilities in Lyon, France. It holds the rights to 17 patent families protecting its technology.
Source: Press Release