A Smart Loan Deal for a Biotech Company

# 🇫🇷 French Eye-Care Company Secures €6M Standby Credit—With a Hidden Stake

In a strategic financial move, a small French eye-care firm has secured a €6 million credit line—not from a bank, but from a long-time shareholder. The arrangement comes with a unique condition: if the company ever withdraws the full amount, the lender could gain nearly **15% ownership** of the business—a significant stake.

## **Flexibility Over Urgency**
The €6 million remains on **standby for three years**, with no obligation to withdraw funds. If the company taps into the line of credit, repayment can be made in **cash or newly issued shares**. Opting for shares keeps capital within the business but dilutes existing shareholders’ equity.

### **Why This Move?**
The company, which expects strong cash flow from its flagship drug **NCX 470**—currently in late-stage testing—anticipates surpluses well beyond 2027. With a potential **U.S. market launch this summer**, approval could mean steady revenue for years.

Still, additional liquidity provides strategic advantages: ✔ Funding new research & development ✔ Acquiring smaller firms ✔ Strengthening negotiation power

The Lender’s Terms

The standby credit comes from Vester Finance, a shareholder with deep industry knowledge. The annual interest rate is set at 7%—but only if the company repays in cash.

The Trade-Off: Ownership vs. Growth

The biggest risk? Share dilution. Existing investors could see their stake shrink—from 1% to less than 0.7%—if the company issues new shares. Management has assured stakeholders that this won’t disrupt the company’s leadership or operations.

Is this a smart play? Only time will tell—but for now, the company has secured a financial cushion without immediate pressure.

The Lender’s Terms

The Trade-Off: Ownership vs. Growth

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