MagForce Aims to Raise Up to $44 Million
Published: Dec 19, 2012
Under the plan, the Company's share capital is to be increased by up to €18.6 million by granting preemptive rights to shareholders against cash and noncash contributions. The new shares will have a notional value of €1.00 and will be issued for €1.80. As part of the capital increase, some of the company's creditors are also to be granted the right to subscribe for new shares at an issue price of €1.80 per share against noncash contributions to the extent that shareholders' preemptive rights are disapplied for shares counting as fractions or that preemptive rights have not been exercised following the expiration of the subscription period for all shareholders, but only up to a maximum of 8,933,643 new shares. The rights will not be traded on the stock exchange. The planned capital measures will be proposed to MagForce's shareholders at an extraordinary General Shareholders' Meeting in Berlin on January 25, 2013.
In the short to medium term, MagForce will use part of these cash funds to finance the post-marketing glioblastoma study.
As well as financing its operating business, the Company plans to repay loans in the amount of €16.1 million to its primary creditors. In the event that this amount is not raised by the cash capital increase, the Company's primary creditors have agreed to convert their loans to equity as part of a noncash capital increase.
The Company considers the debt reduction and balance sheet restructuring vital for safeguarding the long-term existence of MagForce AG. The Company is confident to meet the General Shareholders' Meeting's approval on January 25, 2013.
About MagForce AG
MagForce AG is a leading medical technology company in the field of nanomedicine in oncology. The Company's proprietary, NanoTherm® therapy, enables the targeted treatment of solid tumors through the intratumoral generation of heat via activation of magnetic nanoparticles. NanoTherm®, NanoPlan®, and NanoActivator(TM) are components of the therapy and have received EU-wide regulatory approval as medical devices for the treatment of brain tumors. MagForce, NanoTherm®, NanoPlan®, and NanoActivator(TM) are trademarks of MagForce AG in select countries. For more information, please visit www.magforce.com.
This release may contain forward-looking statements and information which may be identified by formulations using terms such as "expects", "aims", "anticipates", "intends", "plans", "believes", "seeks", "estimates" or "will". Such forward-looking statements are based on our current expectations and certain assumptions, which may be subject to a variety of risks and uncertainties. The results actually achieved by MagForce AG may substantially differ from these forward-looking statements. MagForce AG assumes no obligation to update these forward-looking statements or to correct them in case of developments, which differ from those, anticipated.
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