Cereno Scientific has announced a significant financial boost, securing SEK 250 million in debt financing to propel its clinical development programs through 2026. This funding will primarily support the advancement of CS1 for pulmonary arterial hypertension (PAH) and CS014 for idiopathic pulmonary fibrosis (IPF). The financing agreement includes a cash loan totaling SEK 175 million and the issuance of SEK 75 million in convertible loans. Fenja Capital II and Arena Investors are participating in the convertible loan portion.
Sten R. Sørensen, CEO of Cereno Scientific, stated, "We are pleased to announce this new financing, which secures the development of our pipeline into 2026. With this financial maturity, we are well positioned to reach critical development milestones, including regulatory approval for the next study of CS1 in PAH as well as reported Phase I results and approval of a Phase II study for CS014 in IPF."
The financing is earmarked for several key milestones:
- Achieving FDA regulatory approval for CS1 to enter a Phase IIb study or a pivotal Phase IIb/III study in PAH.
- Completing the Phase I study for CS014.
- Continuing the Expanded Access Program (EAP) for long-term clinical use of CS1 in PAH.
- Obtaining regulatory approval for a Phase II study of CS014 in IPF.
The structure of the financing agreement involves three main components: a SEK 175 million cash loan, SEK 75 million in convertible loans, and the issuance of approximately 5.7 million warrants. The cash loan is divided into two tranches. Tranche 1, amounting to SEK 125 million, will be disbursed upon signing the agreement. Tranche 2, totaling SEK 50 million, will be accessible after FDA approval of CS1 for a Phase IIb or pivotal Phase III study, contingent upon meeting specific financial conditions. A setup fee of 3.87 percent applies to the loan amount. A portion of Tranche 1 will be used to repay a previous loan of approximately SEK 91 million to Fenja Capital. The repayment date for both tranches is set for April 30, 2026.
The convertible loan could result in a dilution of 4.2 percent, with a conversion price of SEK 6.09. The repayment date aligns with the cash loan, April 30, 2026, although earlier conversion to shares is possible. The warrants could lead to a dilution of 2 percent. Arena Investors will hold 55 percent of the deal, while Fenja Capital will hold 45 percent.
