Genflow Biosciences Ltd (LSE:GENF, OTCQB:GENFF, FRA:WQ5) CEO Dr Eric Leire talked with Proactive's Stephen Gunnion about the company’s latest RNS regarding its upcoming AGM and the strategic rationale behind authorising the potential issuance of shares ahead of clinical partnership discussions.
Leire addressed potential shareholder concerns, acknowledging that announcements involving share issuance can sometimes be interpreted as a fundraising signal. However, he clarified that the RNS is not about launching a capital raise, but about strengthening the company’s position in ongoing and future negotiations with major pharmaceutical partners.
He explained that in biotech, financial flexibility translates directly into leverage. “In biotech, cash is not just money, it's negotiating power,” Leire said. As a public company, Genflow's financial position is visible to potential partners, and Leire emphasised the importance of maintaining the ability to walk away from unfavourable terms.
He added that the company is not committing to using the full 38% share issuance authority and stressed that the underlying science remains unchanged. “Our science has not changed. What we're doing is just making sure that we capture the full value of our science,” he noted.
While acknowledging that markets dislike uncertainty, Leire stated that uncertainty is temporary, whereas signing a bad deal would have lasting consequences. He said the company is focused on optimising for the best long-term outcome and ensuring it is not forced into a suboptimal agreement.
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