Published: May 03, 2010
MagForce Nanotechnologies AG Secures Financing up to EUR 20 Million Through an Equity Line
BERLIN - (BUSINESS WIRE) - 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."
The effectiveness of the SEDA is subject to the approval of the
supervisory board of MagForce.
About MagForce Nanotechnologies:
MagForce Nanotechnologies AG is a world-leading company in the area of
nanotechnology-based cancer treatment. Its patented Nano-Cancer
therapy enables the targeted destruction of tumors using
superparamagnetic nanoparticles to generate heat. The nanotechnology
from MagForce represents a revolutionary approach to the future
successful treatment of solid tumors.
Disclaimer:
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 Nanotechnologies AG may substantially differ from these
forward-looking statements. MagForce Nanotechnologies AG assumes no
obligation to update these forward-looking statements or to correct them
in case of developments which differ from those anticipated.
MagForce Nanotechnologies AG
Christofer Radic, +49 (0)30 308 380 31
Public
Relations Manager
fax: +49 (0)30 308 380 99
cradic@magforce.com
www.magforce.com
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