MagForce Nanotechnologies AG has signed
a Standby Equity Distribution Agreement ("SEDA") with YA Global
Master SPV Ltd. ("YA Global"), an investment fund managed by Yorkville
Advisors. Under this agreement, MagForce now has the option over the next 36
months to avail itself of a binding commitment by YA Global to subscribe to
and purchase multiple tranches of newly issued shares from the company’s
approved capital up to a total amount of EUR 20 million. MagForce will retain
complete discretion over if and when it makes use of its rights over the life
of the option.
Under the terms of the agreement, MagForce may offer these tranches from time-to-time,
pursuant to the terms of the agreement. The purchase price of newly issued shares
shall be determined by a formula based on the market price of MagForce’s
stock. The commitment provides MagForce with flexible access to additional equity
capital of up to EUR 20 million, thus ensuring that the company retains a sound
basis of financial comfort as it enters the rapidly approaching commercialization
phase and further expands its R&D pipeline.
"The signing of this agreement with YA Global will better enable MagForce
to proceed with two very important investments," explained Dr. Peter Heinrich,
CEO of MagForce Nanotechnologies AG. "Firstly, it will provide us with
additional resources for the European market launch of Nano-Cancer® therapy
for the first indication expected to receive European regulatory approval, which
is glioblastoma multiforme. Secondly, it will allow us to expand our clinical
investigations to encompass even more kinds of solid tumors. With this additional
capital now available, we will be able to accelerate our transformation from
an essentially German R&D venture financed with German capital into a truly
international commercial enterprise."
"We are extremely pleased to be able to announce our investment in MagForce"
said Dr. Michael J. Nowak, head of healthcare and managing director at Yorkville
Advisors. MagForce is currently moving forward with the planned market launch
of its first product in what is perhaps the most interesting phase of company
development. Dr. Nowak added, "The innovative structure of our investment
commitment, with its combination of both flexibility and financial security,
is an ideal arrangement for the company at this stage."