Inventiva S.A. current report, Q3 FY2023

Business Context and Reporting Period

Inventiva S.A., a French biopharmaceutical company, filed this Form 6-K for September 2023. On September 28, 2023, the company entered into a new sales agreement with Cowen and Company, LLC, doing business as TD Cowen, for an at-the-market equity offering of American Depositary Shares (ADSs).

Key Financial and Capital Markets Information

  • The new program permits sales of ADSs representing ordinary shares with aggregate gross proceeds of up to $58.0 million.
  • TD Cowen will receive a commission equal to 3.0% of gross sales proceeds from ADSs sold through the program.
  • Inventiva is not obligated to sell any ADSs, and TD Cowen is not required to sell a specific amount.
  • The filing does not provide revenue, profit, cash flow, operating margin, debt, cash balance, or liquidity figures.

Material Changes Versus the Prior Comparable Arrangement

  • Inventiva terminated its prior sales agreement with Jefferies LLC, effective September 28, 2023, after providing notice on September 22, 2023.
  • The prior Jefferies program had authorized aggregate ADS sales of up to $100.0 million; $41.7 million of ADSs had been issued and sold under that agreement as of September 22, 2023.
  • The new TD Cowen program has a lower maximum offering capacity of $58.0 million and replaces the Jefferies arrangement.

Guidance, Outlook, Risks, and Unusual Items

  • The offering is intended to provide potential access to additional equity capital, but the timing and amount of any proceeds are uncertain because sales are discretionary and market dependent.
  • Any ADS issuance would dilute existing shareholders and could pressure the market price of the ADSs.
  • TD Cowen may conduct sales through at-the-market transactions or, with Inventiva’s consent, negotiated transactions.
  • Either Inventiva or TD Cowen may terminate the agreement at any time with four days’ prior notice. The program also ends when all covered ADSs have been sold.
  • No funds will be held in escrow, trust, or a similar arrangement.
  • Inventiva agreed to indemnification and contribution obligations in favor of TD Cowen relating to certain securities-law liabilities.

Important Facts to Verify

  • Whether Inventiva has sold any ADSs under the TD Cowen program and the resulting gross and net proceeds.
  • The remaining availability, if any, under the $58.0 million offering authorization.
  • Use of proceeds and the effect of any equity issuance on cash runway, funding needs, and shareholder dilution.
  • The company’s latest cash balance, operating cash burn, debt, and financial results, which are not included in this filing.
  • The complete terms of the Sales Agreement filed as Exhibit 1.1 and related legal opinion filed as Exhibit 5.1.