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Genomic Vision is a publicly-traded company on the Euronext regulated market in Paris

 

Press Releases

FINANCIAL INFORMATION AT SEPTEMBER 30th, 2016

 

 

  • Third quarter sales of products and services up 126%
  • Cash position of €9.5 million
  • Implementation of a new flexible financing line
    via the reserved issuance of convertible notes with warrants (OCABSA)
    for a nominal value of €10 million, subject to shareholders’ approval

 

 

Bagneux (France) – Genomic Vision (the “Company” – FR0011799907 – GV), DNA molecular combing specialist that develops tests for the diagnostics market and tools for the life sciences research market, today reports its revenue and cash position[1] at September 30th, 2016, and announces the signing of a contract with Bracknor Fund Ltd. with a view to setting up a flexible financing line through the issuance of convertible notes with warrants (OCABSA) for a nominal value of 10 million euros, subject to the approval of its shareholders.

 

Erwan Martin, CFO of Genomic Vision, comments:As anticipated, third quarter revenue from activity decreased as a result of a negative base effect associated with the milestone payments from Quest Diagnostics, which Genomic Vision received until the end of 2015. However, we recorded a solid increase of 126% in our sales of products and services, driven by the positive sales momentum observed on the research market, supporting the strategic choice implemented at the start of the year to initiate our deployment on this segment. With a cash position of €9.5 million at September 30th, 2016, we have decided to increase our financial flexibility by setting up a financing contract involving the issuance of convertible notes with warrants (OCABSA) with Bracknor Capital Ltd., a contract that we will put to our shareholders for approval on December 5th. Given its optional nature, this type of instrument will best enable us to support our growth by providing us with means adapted to our development.

 


 

Revenue for the third quarter and first 9 months of 2016

 

 

 

9 months

 

Third quarter

In thousands of euros – IFRS

 

2016

2015

 

2016

2015

Revenue from Quest Diagnostics R&D

 

236

1,130

 

82

615

Sales of products and services

 

421

242

 

149

66

Total revenue from sales

 

656

1,372

 

231

681

Other revenue

 

1,166

1,050

 

319

305

Total revenue from activity

 

1,822

2,422

 

550

986

 

Over the third quarter of 2016, Genomic Vision recorded revenue from sales of €231 thousand, vs. €681 thousand over the third quarter of 2015 (-66%). This expected decrease was due to the drop in revenue from the Company’s R&D collaboration with Quest Diagnostics (milestone payments) following the completion of these collaborative development programs in 2015.

Sales of products and services, which accounted for 65% of the Company’s total revenue compared with 10% in the third quarter of 2015, jumped 126% to €149 thousand. This performance reflects the ramping up of Genomic Vision’s commercial activity thanks, in particular, to sales of consumables and instruments for studying DNA replication and of the innovative solutions offer regarding the quality control and optimization of genetic editing.

 

Once other revenue of €319 thousand corresponding to tax credits (research tax credit, innovation tax credit) and R&D subsidies is taken into account, total revenue from activity totaled €550 thousand in the third quarter of 2016, versus €986 thousand in the third quarter of 2015 (-44%).

 

Over the first 9 months of the year:

  • sales of products and services increased by 74% to €421 thousand;
  • total revenue from sales fell 52% to €656 thousand;
  • total revenue from activity decreased by 25% to €1.8 million.

 

Cash position at September 30th, 2016

At September 30th, 2016, Genomic Vision had cash and cash equivalents of €9.5 million, versus €11.0 million at June 30th, 2016. This figure, which includes the reimbursement of €1.3 million of research and innovation tax credit received on August 29th, 2016, reflects the slight increase in cash burn during the third quarter.

 

 

Implementation of a flexible financing line via the reserved issuance of convertible notes with warrants (OCABSA) for a nominal value of €10 million

On October 27th, 2016, Genomic Vision signed a contract with Bracknor Fund Ltd. with a view to setting up a flexible financing line via the issuance of 1,000 notes convertible into shares with a nominal value of €10.000 each (the “Notes” or “OCA”), comprising twenty tranches of 50 OCA each, with share subscription warrants attached (the “Warrants” or “BSA”) (together the “Notes With Warrants” or “OCABSA”), giving a total nominal value of 10 million euros, subject to shareholders’ approval.

 

 

Objectives of the transaction

The aims of this financing ensured by Bracknor Fund Ltd. (the “Investor”), an investment fund managed by investment manager Bracknor Capital Ltd., are to:

  • provide the Company with additional financial flexibility for 2017 and beyond;
  • cope with any ad hoc requirements as opportunities arise, notably within the framework of the intensification of its commercial deployment on the diagnostics and tools for the life sciences research markets;
  • diversify the Company’s means of financing.

 

This type of financing has a number of advantages for the Company and its shareholders:

  • flexibility: the Company can control the pace of the issuance of note tranches and is not obligated to issue any additional notes beyond the first tranche, drawdowns being at the Company’s sole discretion, subject to certain conditions being met;
  • reasonable discount and gradual staggered issues making it possible to take advantage of the Company’s future value in order to limit the dilutive effect;
  • increase in the share’s liquidity.

 

The effective implementation of this financing is subject to the approval of the Genomic Vision extraordinary shareholders’ meeting scheduled for December 5th, 2016 (the “Shareholders’ Meeting”).

 

Pierre Vannineuse, CEO and Co-Founder of the Bracknor Investment Group, declared: “Genomic Vision has proven its ability to create unique solutions to challenging health issues which have been recognized by the North American leader Quest Diagnostics. We are enthusiastic to support the commercial ramp-up of Genomic Vision through this firm commitment and we trust the management to continue on its success path.”

 

Terms of the transaction

 

Subject to the approval of the Shareholders’ Meeting scheduled for December 5th, 2016, Genomic Vision’s Management Board will issue twenty OCABSA warrants (the “Tranche Warrants”) giving access to Notes with Warrants (OCABSA).

 

One Tranche Warrant will be exercised immediately upon issuance by the Investor, and the 19 other Tranche Warrants may be exercised at the sole discretion of Genomic Vision’s Management Board during the 24 months following the issuance of the Tranche Warrants.

 

Should all of the 19 remaining Tranche Warrants be exercised, the total issue would be liable to result in additional equity of fifteen millions euros: ten million euros resulting from the conversion of all of the Notes into Shares and five million euros resulting from all of the attached Warrants being exercised.

 

It is specified that the Warrants will be subscribed to by the Investor, within the framework of an issuance to a designated person.

 

The legal terms and conditions of this transaction, the main characteristics of each financial instrument, and the Company and the Investor’s obligations are detailed as an appendix to the present press release.

 

This issuance will give rise to the filing of a prospectus with the French Autorité des marchés financiers (AMF).

 

 

Indicative timetable

December 5th, 2016   

Genomic Vision Shareholders’ Meeting to vote on the resolution authorizing the issuance of OCABSA convertible notes with warrants reserved for the Investor

 


 

No later than

December 9th, 2016

Genomic Vision Management Board meeting to agree the issuance of OCABSA convertible notes with warrants subject to the approval of the Shareholders’ Meeting

Subscription of the Investor to the first tranche of OCABSA convertible notes with warrants for 500,000 euros

 

The Company will publish another press release when the twenty Tranche Warrants and the first tranche of OCABSA convertible notes with warrants are issued.

 

Next financial publication

  • 2016 annual revenue, on January 16th, 2017* (before trading)

 

* indicative date, which may be subject to change

 

[1] Unaudited data, reviewed by the Supervisory Board on October 27, 2016.

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