Last close As at 05/08/2026
SEK1.39
▲ −0.01 (−0.43%)
Market capitalisation
SEK197m
Research: Healthcare
IRLAB Therapeutics has announced a new loan facility of up to SEK55m with Formue Nord to support its development programmes. Provided the facility is fully drawn down, we estimate it will extend IRLAB’s cash runway through Q324, past key inflection points (top-line results from the pirepemat Phase IIb trial and the results from the end of Phase II meeting with the FDA, both expected in H124). Considering the market environment, we view the transaction as practical as it provides increased liquidity with limited potential dilution. The first tranche (SEK30m) is paid out on signing the agreement and the second (SEK25m) can be drawn down at IRLAB’s discretion between 22 May and 22 August 2024, provided the company’s market cap exceeds SEK550m (c 40% premium over the current SEK389m market cap). The facility is due for repayment on 22 May 2025 and SEK10m of the loan can be converted to equity. We will update our estimates for this new funding but anticipate no material changes to our valuation.
Written by
IRLAB Therapeutics |
SEK55m loan enhances headroom past key catalysts |
Financing update |
Pharma and biotech |
2 January 2024 |
Share price performance
Business description
Analysts
IRLAB Therapeutics is a research client of Edison Investment Research Limited |
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IRLAB Therapeutics has announced a new loan facility of up to SEK55m with Formue Nord to support its development programmes. Provided the facility is fully drawn down, we estimate it will extend IRLAB’s cash runway through Q324, past key inflection points (top-line results from the pirepemat Phase IIb trial and the results from the end of Phase II meeting with the FDA, both expected in H124). Considering the market environment, we view the transaction as practical as it provides increased liquidity with limited potential dilution. The first tranche (SEK30m) is paid out on signing the agreement and the second (SEK25m) can be drawn down at IRLAB’s discretion between 22 May and 22 August 2024, provided the company’s market cap exceeds SEK550m (c 40% premium over the current SEK389m market cap). The facility is due for repayment on 22 May 2025 and SEK10m of the loan can be converted to equity. We will update our estimates for this new funding but anticipate no material changes to our valuation.
Year end |
Revenue (SEKm) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/21 |
207.9 |
91.1 |
1.76 |
0.0 |
3.8 |
N/A |
12/22 |
61.3 |
(113.1) |
(2.18) |
0.0 |
N/A |
N/A |
12/23e |
7.2 |
(184.0) |
(3.55) |
0.0 |
N/A |
N/A |
12/24e |
0.2 |
(202.5) |
(3.90) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
As per the announcement, the SEK55m loan facility is divided into two tranches. The first tranche of SEK30m is paid out on signing the agreement and the second tranche of SEK25m will be available to be drawn between 22 May and 22 August 2024 at IRLAB’s discretion, provided the company’s market capitalisation is greater than SEK550m. The loan is subject to a set-up fee of 5% of the loan facility (SEK1.5m for the first tranche) and carries an annual interest rate of STIBOR 3M + 10% (which translates to c 14%) to be repaid quarterly, at the end of each calendar quarter. The maturity date has been set for 22 May 2025. We note that the lender, Formue Nord Fokus, holds the right to convert SEK10m of the loan into shares at 130% of the volume-weighted average price during 10 days of trading before the date of signing the loan agreement, which we calculate would be approximately SEK7.8/share (the shares were SEK7.58 on 28 December 2023). We also note that the drawdown of the second SEK25m tranche counts on material share price appreciation (c 40%) over the next 6–8 months, which we believe is possible, provided results from the upcoming data readouts and/or FDA meeting are positive.
We calculate that this new facility, if fully drawn down, will extend IRLAB’s cash runway through Q324, providing sufficient headroom to navigate through upcoming inflection points for pirepemat and mesdopetam, with limited potential dilution for shareholders. We will update our model based on this new fundraise but expect limited impact on our valuation.
IRLAB has also announced an extension to the appointment term of Gunnar Olsson. Gunnar was originally appointed as interim CEO in February 2023 and the latest announcement states the process to replace him is ongoing. We do not expect any changes to management to affect IRLAB’s clinical development timelines.
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Research: Industrials
Cyclical weakness in Carr’s Group’s Speciality Agriculture business has affected the company’s fortunes of late. However, the new management team, a strong net cash balance sheet and a record order book in the Engineering division offer optimism. Operational progress, particularly a reversal of fortunes in Speciality Agriculture, should rebuild confidence and a reduction in the current discount to our view of the underlying value.