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Posted in | Nanomedicine | Nanobusiness

Nanomedicine Company MagForce to Raise €33.5 Million

Published on December 20, 2012 at 6:11 AM

MagForce AG (Frankfurt, Xetra: MF6), a leading medical device company in the field of nanomedicine with a focus on oncology, today announced that the Company, with the approval of the Supervisory Board, has resolved a restructuring plan to safeguard MagForce's long-term existence.

Under the plan, the Company's share capital is to be increased by up to EUR18.6 million by granting preemptive rights to shareholders against cash and noncash contributions. The new shares will have a notional value of EUR1.00 and will be issued for EUR1.80. 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 EUR1.80 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 EUR16.1 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.

Source: http://www.magforce.de/

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