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Investing.com -- Avantium shares fell 15% after the company unveiled plans to secure up to €100 million in new funding, which will significantly dilute existing shareholders by potentially increasing the number of outstanding shares from 8 million to 21 million.
The funding package includes a committed and underwritten rights offering of €65 million, a potential private placement of €15 million, and an expected €20 million grant or loan from the Dutch government. While the financing provides Avantium with a 2-4 year runway to commercialize its FDCA technology through license deals, investors appeared concerned about the substantial share dilution.
The company also announced amendments to its debt facilities, which will reduce interest charges and provide more financial flexibility. Additional positive developments include support from the Dutch government, an organizational restructuring, and plans to focus on fewer technologies for commercialization.
Despite these positive aspects, Avantium revealed further delays in both the start-up of its FDCA plant, now expected to become operative in the first half of 2026, and its timeline for achieving EBITDA break-even.
Kepler analysts stated: "We raise our rating from Reduce to Hold as sufficient access to funding seems to be secured for the next 2-4 years. This means that the investment case is now geared to the potential success of FDCA. The 5Kta plant is now expected to become operative as of H1 2026 and which should trigger license income."
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