Lombard Medical Technologies Aim to Raise $31.7 Million

Staying up-to-date has never been simpler. Sign up for the free GenePool newsletter today!

Lombard Medical Technologies PLC Proposed Placing and Subscription to Raise £21.0 Million

London, UK, 24 May 2013 – Lombard Medical Technologies PLC (AIM: LMT), the specialist medical technology company focussed on innovative vascular products, today announces that it proposes to raise £21.0 million (before expenses) through a Placing and Subscription, arranged on the Company’s behalf by Canaccord Genuity Limited and WG Partners, a trading name of Charles Stanley & Co. Ltd. The Issue Price of 175 pence per Ordinary Share represents a discount of 5 per cent. to the closing middle market price of 184.5 pence per existing Ordinary Share on 23 May 2013 (being the last practicable date prior to the date of this announcement). In conjunction with the Placing and Subscription, Qualifying Participants are being invited to participate in the Fundraising pursuant to an Offer that may raise up to an additional £2.0 million (before expenses).

The Company expects to use the net proceeds of the Placing and Subscription of £20 million, together with Lombard Medical’s existing cash resources of £15.2 million, approximately as follows:

• Build sales and marketing infrastructure ahead of U.S. commercial launch in the second half of 2013 (10%)

• Post U.S. launch continue to grow AorfixTM market share in the U.S. (35%)

• Expand AorfixTM production capacity (17%)

• Develop next generation products, line extensions and delivery devices (17%)

• Clinical trials (10%)

• Grow rest of world sales of AorfixTM and launch in select new territories (including Japan in 2014) (11%)

The Directors currently anticipate that the proceeds of this proposed Placing and Subscription will enable the Company to achieve its longer-term goals in the U.S. market and to support Lombard Medical’s strategy through to cash generation.

The funds raised in the Offer, of up to £2.0 million will be used by the Company for general working capital purposes. In addition the Company has received shareholder approval to amend the terms of the Convertible Loan Notes issued to Invesco Asset Management Limited, acting as agent for and on behalf of its discretionary clients (“IAML”) in March 2012. Having obtained such approval, the terms of the Convertible Loan Notes have been amended to enable the Company to agree in writing to conversion of the £3.0 million principal amount of the Convertible Loan Notes (but not accrued but unpaid interest) into new Ordinary Shares in accordance with the terms of the Loan Note Instrument prior to 1 July 2013.

Simon Hubbert, Chief Executive of Lombard Medical, commented:

“We are delighted with the level of support shown to the Company by our existing shareholders and a number of new top tier institutional investors. The financing, together with our existing cash resources, will allow Lombard Medical to fully realise the potential of AorfixTM in the large and growing $1.3 billion AAA repair market. AorfixTM is the only endovascular stent graft licensed in the U.S. for use in cases with neck angulations up to 90 degrees, enabling treatment of the broadest range of AAA anatomies, which uniquely differentiates AorfixTM from other marketed stent grafts. With such a competitively labelled device and the resources to effectively commercialise AorfixTM, the Board is confident of securing a meaningful share of the U.S. market and creating significant value for shareholders.”

The Fundraising is subject to the approval of the shareholders of the Company at a General Meeting to be held at 11.00 a.m. on 14 June 2013.

The Company today also announces a Board change, details of which are set out below in the full announcement.

Terms of the Placing

Lombard Medical has appointed Canaccord Genuity and WG Partners as joint brokers to the Fundraising. The Fundraising is conditional upon, amongst other things, the Directors obtaining appropriate Shareholder authorities at the General Meeting to seek authority to allot the Fundraising Shares and to disapply statutory pre-emption rights which would otherwise apply to the allotment of the Fundraising Shares. The Circular, containing a notice convening the General Meeting, has today been posted to the Company’s shareholders and will be available to view on the Company’s website www.lombardmedical.com. In total, the Company has received irrevocable undertakings to vote in favour of the Resolutions in respect of 21,204,466 Ordinary Shares representing 70.2 per cent. of the existing Ordinary Shares in issue.

The Placing is also conditional on the Placing Agreement of today’s date between the Company, Canaccord Genuity and WG Partners not having been terminated prior to Admission in accordance with its terms.

The Fundraising Shares will be issued at the issue price of 175 pence per Fundraising Share (the “Issue Price”). The Issue Price represents a discount of 5 per cent. to the closing middle market price of 184.5 pence per existing Ordinary Share on 23 May 2013 (being the last practicable date prior to the date of this announcement).

The Placing is not being underwritten. Application will be made for the Fundraising Shares to be admitted to AIM, a market operated by London Stock Exchange plc and settlement of the Fundraising Shares, together with Admission, is expected to become effective at 8.00 a.m. on 17 June 2013. On Admission, the Fundraising Shares will rank pari passu in all respects with the existing Ordinary Shares in the capital of the Company.

The Appendix to this Announcement (which forms part of this Announcement) sets out the terms and conditions of the Placing. Persons who have chosen to participate in the Placing, by making an oral or written offer to acquire Placing Shares will be deemed to have read and understood this Announcement in its entirety (including the Appendix) and to be making such offer on the terms and subject to the terms and conditions herein, and to be providing the representations, warranties and acknowledgements contained in the Appendix.

Lombard Medical Technologies PLC Tel: 01235 750 800

Simon Hubbert, Chief Executive Officer

Ian Ardill, Chief Financial Officer

Canaccord Genuity Limited

Lucy Tilley / Tim Redfern / Henry Fitzgerald O’Connor / Dr. Julian Feneley

Tel: 020 7523 8000

WG Partners

David Wilson / Claes Spång

Tel: 020 7149 3627

FTI Consulting

Simon Conway / Susan Stuart / Victoria Foster Mitchell Tel: 020 7831 3113

About Lombard Medical

Lombard Medical Technologies PLC (AIM: LMT), is a medical device company focussed on device solutions for the $1.3 billion per annum abdominal aortic aneurysm (AAA) repair market. AAAs are a balloon-like enlargement of the aorta which, if left untreated, may rupture and cause death. Approximately 4.5 million people are living with AAAs in the developed world and each year 600,000 new cases are diagnosed. The market for endovascular stent grafts for this application is expected to grow to $1.6 billion by 2015. The Company’s lead product, Aorfix™, is an endovascular stent graft which has been specifically designed to solve the problems that exist in treating complex tortuous anatomy which is often present in advanced AAA disease. Aorfix™ is currently being commercialised in the EU, and has been approved by the FDA in the U.S. It is the only stent graft approved for AAA neck angulations of up to 90 degrees. Plans are currently underway to launch Aorfix™ in the US later this year through the group’s own direct sales force, focussing on patients with tortuous aneurysm neck anatomy between 60 and 90 degrees in line with the products unique label. Aorfix™ is the first AAA stent graft not of U.S. origin to gain FDA approval.

The Company is headquartered in Oxfordshire, with operations in Ayrshire and Phoenix, USA.

Further background on the Company can be found at www.lombardmedical.com.

Help employers find you! Check out all the jobs and post your resume.

MORE ON THIS TOPIC