Strategic Growth Funded
Nicox and Vester Finance Sign Shareholder Advance Agreement for Strategic Activities
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Nicox SA has signed a shareholder loan agreement with Vester Finance for up to €6.0 million over three years, the French ophthalmology company announced on June 17, 2024, according to GlobeNewswire. The deal gives Nicox the cash it needs to keep its lead glaucoma drug, NCX 470, moving through a critical Phase 3 clinical trial.
Nicox trades on Euronext Growth Paris under the ticker ALCOX. The company has faced mounting debt and rising R&D costs — a common pressure for mid-stage biotechs. This new agreement is designed to buy time until pivotal trial results arrive, Market Screener reported.
A €6 Million Lifeline Structured in Tranches
The agreement lets Nicox draw funds in stages, up to €6.0 million total over three years, according to GlobeNewswire. Vester Finance acts as a strategic shareholder lender — meaning it already holds a stake in the company. This structure, known in French law as a "convention d'avance en compte courant d'actionnaire," is faster to set up than a public share offering. It avoids the lengthy regulatory steps of raising money on the open market.
Vester Finance can convert its loan into Nicox shares. The conversion price reflects a 5% to 10% discount to the stock's average trading price at the time of conversion. That gives Vester a potential upside if NCX 470 succeeds — but it also creates dilution risk for existing shareholders, Market Screener noted.
NCX 470 Denali Trial Is the Make-or-Break Moment
All eyes are on the Denali Phase 3 trial for NCX 470, a novel glaucoma drug that lowers pressure inside the eye. NCX 470 works by donating nitric oxide, which relaxes tissue in the eye and helps fluid drain. An earlier study, called Mont Blanc, showed positive results but did not immediately attract a major buyout or partnership deal.
CEO Gavin Spencer said the Vester Finance deal is "a key element of our strategy to ensure the continuity of our clinical programs." He added that it gives Nicox "the financial flexibility necessary to reach the next major value-inflection point — the Denali trial results." Those results are expected in Q3 2025, according to GlobeNewswire.
Debt Restructuring Clears the Path for New Funding
The Vester Finance deal did not arrive in isolation. Nicox first had to restructure existing debt held by Blackwell Partners LLC and H.C. Wainwright & Co. In May 2024, Nicox signed a non-binding agreement with those creditors to rework a debt load that had reached approximately €18.6 million. The restructured repayment schedule now runs to 2028, easing near-term cash pressure.
Nicox also earns royalties from VYZULTA, a glaucoma eye drop marketed by Bausch + Lomb. Those royalties brought in roughly €5.4 million in 2023. That income stream acts as a floor under the company's finances and supports its long-term viability, even as the Denali trial consumes most of its operating budget, according to ADVFN.
Investors Split Between Hope and Dilution Fears
Market reaction to the deal was mixed. Supporters argue it prevents a cash shortfall that could have halted the Denali trial entirely. Without this agreement, Nicox faced a liquidity crunch as early as late 2024. The new runway extends the company's operational life to at least Q3 2025, giving the Denali data time to read out.
Skeptics, however, see convertible shareholder loans as a warning sign. Critics say that relying on this type of lender suggests Nicox cannot attract top-tier institutional investors. Every conversion of debt into shares shrinks the ownership stake of existing investors. The deal is a lifeline — but it comes with strings attached, Yahoo Finance reported.
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