Evogene Ltd. announced a new financing package that includes a $13 million term loan and a $250,000 operating line of credit, as well as a second tranche of a private placement worth $2 million at $0.60 per share. The company said the credit facility will refinance existing debt and support working‑capital needs, while the private placement will help pay down debt and fund general corporate purposes.
The credit facility, reported by Evogene, is expected to close in the coming days once customary conditions are satisfied. While the terms of the agreement with Farm Credit Canada have not been independently confirmed, the company’s disclosure indicates the loan will provide a significant liquidity cushion for its operations.
The private placement, which follows an initial $5 million tranche in May 2025, was completed at the stated price of $0.60 per share. Evogene’s own filing reports the issuance of shares to raise up to $2 million, but independent verification of the transaction details is not available.
The financing strengthens Evogene’s balance sheet, extending its cash runway beyond the $11.7 million in cash and short‑term deposits reported as of June 30 2025. The additional liquidity is intended to support the company’s strategic pivot to AI‑driven drug discovery through its ChemPass AI platform and to fund ongoing collaborations with partners such as Unravel Biosciences and Google Cloud.
Evogene has recently divested its legacy agricultural biotechnology operations and is concentrating exclusively on pharmaceutical applications of its AI technology. The new financing is positioned to accelerate the development of ChemPass AI, which the company claims can reduce the time and cost of drug discovery by optimizing small‑molecule design across multiple parameters.
Management highlighted that the company has implemented cost‑control measures and workforce reductions to improve capital efficiency. These actions, combined with the new financing, are expected to support the company’s long‑term growth strategy and maintain financial resilience amid a competitive drug‑discovery landscape.
The company reported a net loss of $4.7 million for Q2 2025, compared with a $6.0 million loss in the same period last year. With the new financing, Evogene anticipates extending its cash runway to 13–14 months, providing a buffer for continued investment in its AI platform and strategic partnerships.
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