Artificial heart developer CARMAT has entered into an equity financing agreement with Vester Finance to secure up to €8.2m via a capital increase programme through the exercise of options.
The French medical technology firm designs, manufactures, and markets the Aeson artificial heart.
The agreement with Vester Finance allows for the issuance of a maximum of 3.5 million shares over 24 months.
Under the deal, Vester Finance will subscribe to CARMAT’s ordinary shares at a maximum of 9.96% of the latter’s current share capital, at its discretion and subject to standard contractual conditions.
The primary objective of the financing is to bolster the medical technology firm’s shareholders’ equity and address its short-term working capital needs.
It will support ongoing efforts such as advancing sales initiatives and help in the EFICAS clinical trial in France.
As part of the contract with Vester Finance, CARMAT has received €2.2m immediately, extending its financial runway through September 2024.
CARMAT has committed to a minimum drawdown of €4.4m, beyond which the company retains the option to cancel the agreement at any time.
CARMAT CEO Stéphane Piat said: “This financing line enables us to immediately extend our cash runway to the end of September 2024, and to benefit from a total amount of around €8m in potential financing (based on our current share price) over the next 24 months, which gives us useful room for manoeuvre.
“Meanwhile, buoyed by the encouraging trend in Aeson sales since the start of 2024, we also continue to work on securing other financing, in order to strengthen our financial structure and sustain our long-term development, particularly our sales growth.”
The French company aims to advance heart failure treatment with Aeson, which is said to be the world’s first physiological artificial heart.
Designed as a bridge to transplant, Aeson is an active implantable device, intended for end-stage biventricular heart failure patients.
Its haemocompatibility, pulsatility, and self-regulation can save patients and enhance the quality of life with a portable external power system, CARMAT claimed.
Aeson is CE-marked and is available in the European Union, with ongoing evaluation in the US under an early feasibility study (EFS).
