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Posted: Jan 28, 2013
Nanostart-holding MagForce: Shareholders' Meeting Resolves to Increase Capital by up to 33.5M Euros
(Nanowerk News) The shareholders’ Meeting of Nanostart-holding MagForce AG, a leading medical technology company in the field of nanomedicine in oncology, approved all agenda items with a majority of votes.
With immediate effect, the Company’s share capital can therefore be increased by up to €18.6 million against cash and noncash contributions, granting preemptive rights to shareholders. The new shares with a notional value of €1.00 will be issued for €1.80. The Company was also granted the right to issue new shares at the issue price of €1.80 per share to certain creditors 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 preemptive rights will not be traded on the stock exchange.
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 will repay loans in the amount of €16.1 million to its primary creditors, insofar as this amount is not converted to equity as part of a debt-to-equity swap.
“The capital measures approved today will allow the Company to restructure its balance sheet by eliminating €16.1 million in debt as part of its strategic financing activities while also raising sufficient cash funds for upcoming tasks,” explained Christian von Volkmann, CFO and Co-CEO. “In view of the Company’s long-term corporate planning and the establishment of its NanoTherm® therapy on the market, the Management and Supervisory Board felt that these measures were vital to the Company’s future and were very pleased with the approval of these measures. We are confident that MagForce’s business model with NanoTherm® therapy will be a profitable one.”
About MagForce AG
MagForce AG is a leading medical technology company in the field of nanomedicine in oncology. The Company's proprietary, NanoTherm® therapy, enables the targeted treatment of solid tumors through the intratumoral generation of heat via activation of magnetic nanoparticles. NanoTherm®, NanoPlan®, and NanoActivator(TM) 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(TM)are trademarks of MagForce AG in select countries. For more information, please visit www.magforce.com.
Nanostart AG is a leading nanotechnology venture capital company. The company invests venture capital (VC) in promising young nanotechnology companies. Nanostart invests globally and at different phases of development. Emphasis of investments is on especially innovative industries such as cleantech, life sciences, and IT/electronics. Nanostart invests either directly in nanotechnology companies or through a regional nanotechnology fund. The headquarters of Nanostart AG is in Frankfurt, Germany. Through its holding in Singapore, Nanostart Asia Pacific, the company also invests as partner of the Singaporean government.
Source: Nanostart (press release)
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