- Proposed capital increase with preferential subscription rights
to be carried out in January 2024 and put to a vote at an
Extraordinary General Meeting to be held on November 16, 2023
Regulatory News:
IMPLANET (Euronext Growth: ALIMP, FR0013470168, eligible for
PEA-PME plans), a medical technology company specializing in
implants for orthopedic surgery and the distribution of
technological medical equipment, today announces its revenue for
the third quarter of 2023 and the first nine months to September
30, 2023.
Ludovic Lastennet, IMPLANET’s Chief Executive Officer,
said: “Our third-quarter revenue was significantly impacted by the
under-performance recorded abroad. Faced with an economic
environment that remains complex, one of our priority objectives
for the next 12 months is to reinvigorate our presence in the
United States, a key market for our industry, notably by
strengthening our sales teams and by obtaining FDA clearance for
new products resulting from our OriginTM range and our partnership
with Sanyou Medical and its subsidiary SMTP. Regarding our export
activity, we are also intending to capitalize on our existing
partnerships, and notably our strategic alliance with Sanyou
Medical and SMTP. We are eager to initiate the distribution of our
JAZZ® platform in China, which is subject to the Chinese
authorities’ approval. This new territory should be a major future
growth driver for Implanet. Alongside our strategic partnership, we
are planning to continue our commercial development and our
proactive investment policy to establish IMPLANET as a key player
in the field of spine surgery. It is with this in mind that we
would like to invite you to attend the Extraordinary General
Meeting of November 16, the aim of which will be to approve the
resolutions enabling the launch of a capital increase with
preferential subscription rights, an operation our main shareholder
intends to extensively contribute to1”.
Third quarter of 2023
In € thousands – IFRS2
2023
2022
Change %
France
729
691
+5%
United States
228
476
-52%
Rest of the world
562
696
-19%
Spine revenue
1,518
1,863
-18%
Medical equipment (SMTP)
28
0
-
Services (MADISON)
-10
-1
Total third-quarter revenue
1,537
1,862
-17%
Spine activity generated sales of €1.52 million in the third
quarter of 2023, down 18% compared with the revenue of €1.86
million recorded in the same quarter of 2022.
Activity in France grew by 5%, with revenue of €0.73 million in
the third quarter of 2023 versus €0.69 million a year earlier. In
contrast, as mentioned at the time of the 2023 Half-Year Results
announcement, in the United States the Company recorded revenue of
€0.23 million in the third quarter of 2023 versus €0.48 million in
2022, a 52% decrease in activity. This decrease was notably a
result of the lack of sales within the framework of the partnership
with SeaSpine (which generated €93 thousand in the third quarter of
2022). Export activity in the rest of the world recorded revenue of
€0.56 million in the third quarter of 2023 versus €0.70 million in
the same period of 2022, a decrease of 19%.
The Company is also continuing the rollout of its medical
equipment distribution activity with Sanyou Medical subsidiary
SMTP’s ultrasound surgical scalpel. The revenue generated by this
activity in the third quarter of 2023 was €0.03 million.
First nine months of
2023
In € thousands – IFRS3
2023
2022
Change %
Total first-quarter revenue
2,208
2,016
+10%
Total second-quarter revenue
2,060
2,096
-2%
Total third-quarter revenue
1,537
1,862
-17%
Total nine-month
France
2,516
2,492
+1%
United States
1,046
1,278
-18%
Rest of the world
1,896
2,183
-13%
Spine revenue
5,459
5,952
-8%
Medical equipment (SMTP)
279
-
Services (MADISON)
68
21
-
Total nine-month revenue
5,806
5,974
-3%
Altogether over the first nine months of 2023, the Company
recorded revenue of €5.81 million, compared with €5.97 million over
the same period of 2022.
Spine activity generated revenue of €5.46 million in the first
nine months of 2023, versus €5.95 million in 2022. Activity was
stable in France, with revenue totaling €2.52 million. Over the
same period, activity in the United States generated revenue of
€1.05 million, compared with €1.28 million the previous year
(-18%), as a result of this under-performance in the third quarter
of 2023. Export activity in the rest of the world also fell over
the period, by 13%, totaling €1.90 million in the first nine months
of 2023 compared with €2.18 million in 2022.
The medical equipment distribution activity generated €0.28
million over the first nine months of 2023.
Cash position
As of September 30, 2023, the Company’s cash position stood at
€0.43 million4.
Implanet’s cash position not being sufficient in view of its
current operational development plan to finance business over the
coming twelve months, and in particular the needs associated with
the continued development of the Sanyou Medical project (see the
2023 half-year results publication), the Company is planning to
launch a capital increase with preferential subscription rights
that should take place in January 2024 for an amount between €5.5
million and €6.4 million (excluding the possible exercise of a
maximum 15% extension option).
Based on current business assumptions and anticipated commercial
developments with Sanyou Medical, the Company estimates that this
capital increase, for a minimum amount of €5.5 million, would give
it financial visibility of over 12 months once completed.
As the capital increase will take several months to complete
(time required to hold the General Meeting convened for November
16, time required to obtain a waiver regarding the requirement to
file a public tender offer and time required to obtain the approval
of the relevant Chinese government authorities), the Company has
been actively looking into several short-term financing options to
enable it to meet its cash requirements until the implementation of
this capital increase, favoring non-dilutive financing in the form
of non-convertible bonds.
The Company’s Board of Directors, at its meeting of October 9,
2023, therefore authorized short-term financing of up to €1.3
million nominal in non-convertible bonds through two investors who
are not shareholders in the Company5. These non-convertible bonds,
subscribed in cash for €1.0 million via the issuance of 260 bonds
with a nominal value of €5,000 subscribed at 77% of the bond’s
nominal value, are subject to two tranches each representing a
nominal amount of €0.65 million subscribed at 77% of the par value
through the issuance of 130 bonds per tranche. The Company received
the sum of €0.5 million corresponding to the first tranche drawdown
on October 9, 2023.
On the basis of current cash forecasts and in the absence of any
new sources of financing being obtained, the drawdown of the first
tranche enables the Company to be financed through to December 31,
2023.
Reminder of 2023
highlights
- Commercial launch of the SMTP (Sanyou Medical subsidiary)
ultrasound scalpel in March 2023;
- FDA clearance of the SqualeTM range of anterior cervical cages
the United States;
- Commercial launch in Europe of the MIS range, a minimally
invasive pedicle screw positioning system;
- Proposed capital increase with preferential subscription rights
to be carried out in January 2024 to strengthen the Company’s
capital and enable its commercial development, to be voted on at an
Extraordinary General Meeting scheduled for November 16, 2023.
Upcoming financial
publication
- 2023 Full-Year Revenue, on January 23, 2024, after
market close
About IMPLANET Founded in 2007, IMPLANET is a medical
technology company that manufactures high-quality implants for
orthopedic surgery and distributing medical technology equipment.
Its activity revolves around a comprehensive innovative solution
for improving the treatment of spinal pathologies (JAZZ®)
complemented by the product range offered by Orthopaedic &
Spine Development (OSD), acquired in May 2021 (thoraco-lumbar
screws, cages and cervical plates). Implanet’s tried-and-tested
orthopedic platform is based on the traceability of its products.
Protected by four families of international patents, JAZZ® has
obtained 510(k) regulatory clearance from the Food and Drug
Administration (FDA) in the United States, the CE mark in Europe
and ANVISA approval in Brazil. In 2022, IMPLANET entered into a
commercial, technological and financial partnership with SANYOU
MEDICAL, China's second largest medical device manufacturer.
IMPLANET employs 43 staff and recorded a consolidated revenue of
€8.0 million in 2022. Based near Bordeaux in France, IMPLANET
opened a US subsidiary in Boston in 2013. IMPLANET is listed on the
Euronext Growth market in Paris. For further information, please
visit www.Implanet.com.
Disclaimer This press release contains forward-looking
statements about Implanet and its business. Implanet believes that
these forward-looking statements are based on reasonable
assumptions. However, no assurance can be given that the forecasts
expressed in these forward-looking statements will materialize, as
they are subject to risks, including those described in Implanet's
reference document filed with the Autorité des marchés financiers
(AMF) on April 16, 2018 under number D.18-0337 and in the annual
financial report for December 31, 2022, which are available on the
Company's website (www.implanet-invest.com), and to changes in
economic conditions, financial markets and the markets in which
Implanet operates. The forward-looking statements contained in this
press release are also subject to risks that are unknown to
Implanet or that Implanet does not currently consider material. The
occurrence of some or all of these risks could cause Implanet's
actual results, financial condition, performance or achievements to
differ materially from those expressed in the forward-looking
statements. This press release is for information purposes only and
does not and shall not under any circumstances constitute an offer
to sell or subscribe, or the solicitation of an order to buy or
subscribe, Implanet securities in any country.
1 Sanyou Medical has pledged to subscribe to this capital
increase in cash, on an irreducible and reducible basis, at a
maximum price of €0.13, up to a maximum of €5 million, subject to
(i) the approval of Sanyou Medical's Board of Directors, (ii)
obtaining prior approval from the Autorité des Marchés Financiers
(AMF) for a waiver regarding the obligation to file a public tender
offer (in accordance with the provisions of articles 234-8 and
234-9, 2° of the AMF General Regulations) in the event of a
post-transaction crossing of the 50% capital or voting rights
threshold and (iii) the approval of the relevant Chinese government
authorities. 2 Unaudited figures 3 Unaudited figures 4 This amount
does not include the drawdown of the first €0.5 million tranche of
short-term financing granted to the Company in October 2023. 5 This
financing is not subject to any other related agreements, nor to
any guarantees or security interests in respect of the bond
subscribers. Penalties in the event of default will be applied in
the form of (i) interest at a rate of 15% from the date of default
and (ii) the issuance of Equitization Warrants until repayment of
the outstanding debt. In such a case, the issuance of these
"Equitization" warrants will be the subject of a detailed press
release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231017898596/en/
IMPLANET Ludovic Lastennet, CEO David Dieumegard, CFO
Tél. : +33 (0)5 57 99 55 55 investors@Implanet.com
NewCap Investor Relations Mathilde Bohin Nicolas Fossiez
Tél.: +33 (0)1 44 71 94 94 Implanet@newcap.eu
NewCap Media Relations Arthur Rouillé Tél.: +33 (0)1 44
71 94 94 Implanet@newcap.eu
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