20 Oct 2016
N+1 Singer - Quantum Pharma - Fundraising and board changes
Quantum has announced it has successfully raised £15m at 34p to reduce Net Debt levels and provide the group with greater headroom and more flexibility to invest in the business. On our revised forecasts, Y/E Net Debt/EBITDA will be 1.5x, falling to 0.7x by Jan-19. At the placing price, the shares trade on a FY18 EV/EBITDA of 6.7x and a P/E of 9.7x, which we think is attractive in the context of the substantial growth opportunity from the UL2L pipeline.