MagForce AG successfully resolves and completes capital increase from authorized capital under exclusion of statutory subscription rights
DGAP-News: MagForce AG / Key word(s): Capital Increase
Berlin and Nevada, June 25, 2019 - The Management Board of MagForce AG (Frankfurt, Scale, XETRA: MF6, ISIN: DE000A0HGQF5), a leading medical device company in the field of nanomedicine focused on oncology, has resolved and successfully completed today, with the approval of the Supervisory Board, on basis of the authorization provided for in the Company's articles of association, an increase of the registerd share capital of the Company from currently EUR 26,463,802.00 to EUR 27,640,274.00 by issuing 1,176,472 new no-par value bearer shares under exclusion of the shareholders' statutory subscription rights.
The new shares with dividend entitlement starting from January 1, 2018 were placed in a private placement as follows: 705,883 of the new shares with M&G International Investments Ltd., London, and 470,589 of the new shares with MagForce AG's CEO, Dr. Ben Lipps, each at EUR 4.25 per new share. The gross proceeds of the capital increase accruing to the Company amount to EUR 5 million.
The additional capital will be mainly used to accelerate the on-going international expansion of MagForce, in particular in Europe.
In Germany and all member states of the European Union, NanoTherm therapy holds the official approval for the treatment of brain tumors, and has been available for commercial treatment at selected clinics installed with our patented therapy system. As we deal with a very aggressive form of cancer, fast access to therapy is of the highest priority. To make NanoTherm more broadly available, thus allowing for an accelerated treatment option, our market development team has successfully focused on identifying and building relationships with potential partner hospitals throughout Europe. In April of 2019, MagForce reported that the first hospital outside of Germany, the Independent Public Clinical Hospital No. 4 (SPKS4) in Lublin, Poland, has opened its NanoTherm treatment center and is now offering our innovative therapy as an additional treatment option for brain tumor patients from Poland and surrounding countries. In addition, MagForce recently entered into a cooperation agreement with a further German hospital, the Paracelsus Clinic in Zwickau, where a treatment center is planned to open over the summer. Once construction has been completed, Paracelsus Clinic Zwickau will be one of four clinics - together with the University Hospitals Cologne and Münster as well as the SPKS4 in Lublin, Poland - currently offering MagForces NanoTherm therapy for the commercial treatment of brain tumor patients. The new partnerships in Germany and Poland both cover geographically important regions, and therefore represent another important step in our European roll-out strategy.
MagForce continues to see great interest in NanoTherm therapy in Italy and Spain. Negotiations regarding first treatment centers there are ongoing, and we will update the market in due time once the next cooperation agreements have been concluded.
Geographic availability is, of course, a significant factor in the selection of a treatment plan, however, reimbursement and the certification of the treating neurosurgeons are of equal importance. Whereas reimbursement in Germany has been achieved so far in a rather lengthy process for each individual patient, we now have the number of cases necessary for the NanoTherm treatment centers to be able to negotiate their budgets with health insurance providers. These negotiations are currently underway and we continue to support these clinics in every way we can in order to achieve the best possible result and facilitate the reimbursement process. In Poland, a small Investigator Initiated Trial (IIT) is currently being conducted in order to apply to the Agency for Health Technology Assessment and Tariff System for the reimbursement of NanoTherm therapy as a supplementary treatment. Additionally, in 2019, MagForce launched a comprehensive application training series consisting of three consecutive modules to certify surgeons in the use of our innovative NanoTherm technology. The first session, "Module A - the basics", which took place end of January 2019, was met with great excitement from participants and we are planning for the next modules, covering advanced techniques, to commence this summer.
Based on the highly satisfying treatment results, MagForce expects that the European roll-out, combined with reimbursement approval in the relevant countries, will significantly speed up revenue generation and profitability of the European business.
In the US, MagForce is progressing the clinical study for marketing authorization of NanoTherm therapy for the treatment of prostate cancer. The Company is moving towards completion of Stage I of this pivotal study and in parallel is preparing the next stage by extending patient recruitment and planning to open a third study site in the Western part of the country. In order to prepare for commercialization and hit the ground running after approval, NanoActivator chairs will be placed in selected urology programs where medical professionals will be able to gain experience on training phantoms, commonly used for new urological procedures.
About MagForce AG and MagForce USA, Inc.
NanoTherm(R), NanoPlan(R), and NanoActivator(R) 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 are trademarks of MagForce AG in selected countries.
Press- and investor contact information:
Barbara von Frankenberg
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.
Barbara von Frankenberg
Communications & Investor Relations
25.06.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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