Medgenics successfully closes additional financing round

31-May-2010 - USA

Medgenics announced that it has successfully closed an additional round of financing, raising gross proceeds of £836,384.90 from both UK and US accredited investors. This includes further investment from directors Joel Kanter and Eugene Bauer of £103,650.00 and £6,909.95, respectively. Pursuant to a board resolution passed on 25 May 2010, the Company has allotted and issued (credited as fully paid), conditional upon admission to trading on AIM, 16,727,698 new Common Shares at a price of 5 pence per Common share.

Application will be made by the Company for all of the above listed new Common Shares to be admitted to trading on AIM and dealings are expected to commence at 8am on 1 June 2010.

Following the admission to trading on AIM of these 16,727,698 new Common Shares, the total number of Common Shares in issue will be 154,642,316.

The directors believe that these additional funds will enable the Company to advance the recruitment and treatment of further patients under its ongoing phase I/II anaemia trial and to further develop its active partnering initiatives in relation to its key current and proposed product candidates for the Biopump technology, as well as providing additional working capital .

The directors believe that the proceeds of the second closing of this financing round will enable the completion of recruitment for the next higher dose group, recruitment for which started in May following the approval of the Ministry of Health to include a second prestigious teaching hospital as an approved trial centre. Patients are now being recruited for treatment with EPODURE Biopumps producing the therapeutic protein erythropoietin (EPO). The market that this novel form of treatment addresses is currently valued at US$12bn.

https://www.bionity.com/en/news/118224/medgenics-successfully-closes-additional-financing-round.html