Inventiva Draws Down The Second Tranche Of €25 Million Under Existing Finance Contract With The European Investment Bank
Portfolio Pulse from Benzinga Newsdesk
Inventiva (NASDAQ:IVA) has drawn down the second €25 million tranche of its loan agreement with the European Investment Bank to fund its NATiV3 Phase III clinical trial for lanifibranor in NASH patients. The loan has a 7% interest rate, a 3-year maturity, and repayment is expected after the trial results in H1 2026. The funds extend Inventiva's cash runway until Q3 2024. The company issued 3,144,654 warrants to EIB with an exercise price of €3.95, potentially raising €12,421,383 if exercised.
January 10, 2024 | 9:03 pm
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Inventiva has secured the second tranche of €25 million from EIB, which will fund its NATiV3 Phase III trial for NASH. The company's cash runway is extended to Q3 2024, and it has issued warrants that could potentially raise additional funds.
The drawdown of the second tranche is a positive development for Inventiva as it secures necessary funding for its pivotal clinical trial, which is critical for the company's future. The extended cash runway reduces immediate financial risk and may reassure investors. The issuance of warrants represents a potential for future capital but also dilutes current shareholders. The news is likely to be viewed positively in the short term, given the financial stability it provides.
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