At any time during the 36 month agreement, MediGene is entitled to offer YA Global newly issued MediGene shares (in tranches of up to 1 million Euro) and in turn YA Global is obliged to subscribe to and purchase these new shares. This agreement provides MediGene with flexible access to significant liquidity at its discretion, and therefore places the company in a comfortable position for licensing negotiations.
Dr Peter Heinrich, CEO of MediGene AG commented: "This vehicle is particularly well suited to provide MediGene with the financial flexibility for its future operations and to further strengthen our financial position for our partnering discussions. We previously announced a cash position of approximately 30 million Euro at the end of the third quarter 2008. Looking into 2009 with confidence, we expect increased product-based revenues and significant revenues from licensing agreements. At the same time, a significantly reduced cash burn in 2009 will enable us to preserve our liquidity and to start the New Year at a strengthened position".
This press release contains forward-looking statements representing the opinion of MediGene as of the date of this release. The actual results achieved by MediGene may differ significantly from the statements made herein. MediGene is not bound to update any of these forward-looking statements. MediGene® is a registered trademark of MediGene AG.
MediGene AG is a publicly listed (Frankfurt, Prime Standard: MDG) biotechnology company located in Martinsried/Munich, Germany, with subsidiaries in Oxford, UK and San Diego, USA. MediGene is the first German biotech company to have drugs on the market, which are being distributed by partner companies and has several drug candidates in clinical development, two of which provide significant sales potential. In addition, the company has numerous projects in research and pre-clinical development and possesses innovative platform technologies. MediGene focuses on the research and development of novel drugs for the treatment of cancer and autoimmune diseases.
Contact MediGene AG E-mail: investor@medigene.com Fax: +49 - 89 - 85 65 - 2920 Julia Hofmann / Dr. Nadja Wolf, Public Relations, Tel.: +49 - 89 - 85 65 - 3324 Dr. Georg Dönges, Investor Relations, Tel.: +49 - 89 - 85 65 - 2946
