#DilutiveFunding
Avantium stock tumbles after announcing dilutive funding plan
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." This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. 3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Is AVTX part of an AI-powered winning strategy? ProPicks AI evaluates AVTX alongside thousands of other companies every month using 100+ financial metrics. Using powerful AI to generate exciting stock ideas, it looks beyond popularity to assess fundamentals, momentum, and valuation. The AI has no bias—it simply identifies which stocks offer the best risk-reward based on current data with notable past winners that include Super Micro Computer (+185%) and AppLovin (+157%). Want to know if AVTX is currently featured in any ProPicks AI strategies, or if there are better opportunities in the same space?
www.investing.com
September 5, 2025 at 9:25 AM Everybody can reply
Companies can seek funding from different sources as they grow, from family and angels to venture capital, though existing owners must give up some control.

3/3

#DilutiveFunding #funding #ThinkingKat
January 14, 2025 at 5:33 PM Everybody can reply
2 likes