Genflow Biosciences Addresses Strategic Share Issuance Authority and Partnership Negotiations

Genflow Biosciences Ltd (LSE:GENF, OTCQB:GENFF, FRA:WQ5) has clarified the rationale behind its recent announcement regarding share issuance authority ahead of its annual general meeting, emphasising that the move is designed to strengthen its negotiating position rather than signal an imminent capital raise.

In a recent interview, Dr Eric Leire, chief executive officer of the company, acknowledged that shareholders may view announcements concerning potential share issuance with concern, particularly given the market’s typical negative reaction to such news. However, he stressed that the regulatory notice should not be interpreted as a precursor to fundraising activities.

The company is seeking authorisation to issue up to 30 per cent of its shares, a measure Dr Leire characterised as a strategic tool for upcoming discussions with major pharmaceutical partners. He explained that in the biotechnology sector, financial flexibility represents a critical form of leverage when negotiating partnership terms.

Dr Leire articulated the fundamental dynamic at play, noting that as a publicly listed entity, Genflow Biosciences‘ financial position remains transparent to potential collaborators. The ability to decline unfavourable terms, he argued, constitutes the company’s most valuable negotiating asset. Without adequate financial flexibility, the firm risks being compelled to accept suboptimal agreements that could undermine long-term shareholder value.

The chief executive was explicit in stating that the company is not committed to utilising the full extent of the requested authority. He emphasised that the underlying scientific proposition remains unchanged and that the measure is solely intended to ensure the company captures the full value of its research and development efforts.

Addressing concerns about market uncertainty, Dr Leire acknowledged that investors generally dislike ambiguity. Nevertheless, he contended that temporary uncertainty represents a preferable alternative to the permanent consequences of entering into disadvantageous partnership arrangements. The company’s priority, he stated, is to optimise outcomes over the long term rather than avoid near-term dilution at the expense of strategic value.

Dr Leire concluded by noting that whilst he cannot provide guarantees regarding the specific terms or timing of potential partnerships, he can assure shareholders that Genflow Biosciences will not be pressured into accepting suboptimal agreements. He expressed confidence that once partnership announcements are made, the strategic importance of maintaining negotiating leverage will become apparent to the investment community.