Reva has secured US$25m in funds via a convertible note with an additional US$23m possible from the exercise of warrants. CIMB expects this should provide adequate support for commercialisation of the bioresorbable Fantom scaffold.
Reva reported a second quarter loss, in line with the broker’s forecast. CIMB believes the company is making progress on the development of ‘Fantom’ scaffolds. The company is working to acquire up to US$25m which the broker believes will be adequate to see the company through the European certification process.
Reva is restructuring to focus exclusively on early stage, bioresorbable ‘Fantom’ scaffolds in lieu of further development of ReZolve2, which was to be commercialised next year. CIMB thinks Fantom scaffolds underpin the competitive advantage for the company and offer other advantages.
Management has presented at a recent Conference and CIMB analysts were in attendance. They absorbed all the info and returned with even more confidence their supportive view is but warranted. They point out the company comes with differentiating technologies, but execution will remain key.