Last close As at 05/08/2026
SEK4.76
▲ −0.02 (−0.33%)
Market capitalisation
SEK1,484m
Research: Healthcare
Cereno Scientific has announced a new financing arrangement of at least SEK250m, with net proceeds expected to extend the runway into 2026, past several key clinical milestones. Secured from Fenja Capital and Arena Investors, the new financing includes a cash loan of SEK175m across two tranches and SEK75m in convertible debt. While the first cash tranche of SEK125m will be paid out on signing, the second SEK50m payout is conditional on lead asset CS1 receiving FDA approval for the next clinical phase. Tranche 1 will be partially used to repay the outstanding c SEK91m loan from Fenja Capital, raised in November 2023, and comes with a 3.87% set-up fee. Following the debt repayment and set-up fee, management expects net proceeds from Tranche 1 and the convertible debt of c SEK99m. The financing agreement will extend the cash runway into 2026, past key milestones such as FDA approval of the next CS1 study and completion of the Phase I trial and Phase II regulatory approval for CS014. We will present our updated estimates following the Q324 results.
Cereno Scientific |
New SEK250m financing secures runway into 2026 |
Financing update |
Pipeline update |
Pharma and biotech |
12 November 2024 |
Share price performance
Business description
Analysts
Cereno Scientific is a research client of Edison Investment Research Limited |
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Cereno Scientific has announced a new financing arrangement of at least SEK250m, with net proceeds expected to extend the runway into 2026, past several key clinical milestones. Secured from Fenja Capital and Arena Investors, the new financing includes a cash loan of SEK175m across two tranches and SEK75m in convertible debt. While the first cash tranche of SEK125m will be paid out on signing, the second SEK50m payout is conditional on lead asset CS1 receiving FDA approval for the next clinical phase. Tranche 1 will be partially used to repay the outstanding c SEK91m loan from Fenja Capital, raised in November 2023, and comes with a 3.87% set-up fee. Following the debt repayment and set-up fee, management expects net proceeds from Tranche 1 and the convertible debt of c SEK99m. The financing agreement will extend the cash runway into 2026, past key milestones such as FDA approval of the next CS1 study and completion of the Phase I trial and Phase II regulatory approval for CS014. We will present our updated estimates following the Q324 results.
Year end |
Revenue (SEKm) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/22 |
0.0 |
(27.6) |
(0.20) |
0.0 |
N/A |
N/A |
12/23 |
0.0 |
(46.4) |
(0.20) |
0.0 |
N/A |
N/A |
12/24e |
0.0 |
(58.9) |
(0.21) |
0.0 |
N/A |
N/A |
12/25e |
0.0 |
(56.0) |
(0.20) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
The financing is split 55:45 between the US-based investor Arena Investors and Fenja Capital. The SEK75m convertible debt will be due for repayment on 30 April 2026 and can be converted into 12.3m company shares (at SEK6.09/share) during the term of the loan. Assuming full conversion, this would dilute existing shareholders by 4.2%. The agreement also mandates Cereno issuing 5,749,017 warrants to the financiers, which can be converted to shares at a subscription price of SEK6.82/warrant until 30 April 2029 (currently out of the money). This will lead to another 2% dilution to current shares outstanding, assuming 100% conversion (netting the company SEK39.2m in exchange).
While Tranche 1 of the cash loan and the convertible debt (SEK200m) is likely to be available to Cereno immediately, the second SEK50m payout is conditional on CS1 receiving FDA approval for the next clinical phase (expected in H125). Tranche1 will also be used to pay down the outstanding SEK91m debt from Fenja Capital, repayable in April 2026. Excluding the debt repayment and the set-up fee, Cereno will have c SEK99m in funds at hand to support its development activities.
We expect the SEK250m financing to de-risk the company’s development plans as it approaches key milestones related to its pipeline such as regulatory approval for the next development phase (either Phase IIb or a pivotal Phase II/III) for lead asset CS1 in pulmonary arterial hypertension and completion of the Phase I study for CS014, the second HDAC inhibitor in the company’s portfolio, both expected in 2025. We also believe that it provides Cereno with a stronger foundation to undertake business development or partnering discussions. Management expects the cash injection to support runway extension into 2026, by which time we foresee a possible licensing deal for CS1 and material clinical progress with CS014.
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Research: Metals & Mining
Pan American Silver (PAAS) reported Q324 results that saw a 20% quarter-on-quarter increase in silver production on the back of normalising operating performance at La Colorada. Thanks to the good cost control, mine operating earnings jumped 50% q-o-q while EBITDA increased 32% to US$280m. Strong cash flow generation led to almost doubling in free cash flow to a record US$151m. With a slight adjustment to initial terms, the La Arena transaction is now expected to close by end 2024. We are looking to revise our estimates and valuation shortly; given the persistent strength in the gold price the risks to our forecasts are on the upside.