IntelGenx Technologies considers non-dilutive financing to raise cash

By Devika Patel

Knoxville, Tenn., March 27 – IntelGenx Technologies Corp. may issue non-dilutive instruments to raise cash.

The company’s stock is trading low, so equity sales are not an option right now, and IntelGenx needs to raise cash in order to maintain its fixed costs.

“Even though we’re trying to be cautious about spending our money, we have quite a bit of fixed costs that we have to maintain,” president and chief financial officer Andre Godin said on the company’s fourth quarter and year ended Dec. 31, 2019 earnings conference call on Friday.

The company may consider issuing non-dilutive instruments to raise cash, as management does not want to wait months for the markets to resolve and selling stock in a low-price environment is not an option.

“In terms of cash, the market situation right now is quite difficult, but I am already pursuing several non-dilutive options and hopefully some of them or one of them could be successful so that at least we don’t have to wait,” Godin said.

“We could refinance some debt.

“We could solidify our balance sheet with non-dilutive or much less dilutive instruments and not having to wait three, four, five, six months to do so.

“Even the market should be in general better, it’s always when you have cash in the bank that you should love to get more, but since the stock price is quite low, obviously equity is not an option,” Godin said.

The company is considering all of its options since no one knows when the current situation will resolve.

“Other options are being contemplated and hopefully we’ll be able to solidify our balance sheet in the near-term and not depend on the market situation because nobody knows when this thing will end and so it’s prudent to do it this way,” Godin said.

IntelGenx is a Saint Laurent, Quebec-based drug delivery company focused on the development and manufacturing of pharmaceutical films.

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