19.12.2012

MagForce aims to raise up to €33.5 million

  • Capital increase against cash and noncash contributions by granting preemptive rights of up to a total of €33.5 million proposed for resolution by the General Shareholders’ Meeting
  • Debt reduction and balance sheet restructuring planned

Berlin, Germany, December 19, 2012 – 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 €18.6 million by granting preemptive rights to shareholders against cash and noncash contributions. The new shares will have a notional value of €1.00 and will be issued for €1.80. 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 €1.80 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 €16.1 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.

 

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 NanoActivatorTM 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 NanoActivatorTM are trademarks of MagForce AG in select countries. For more information, please visit www.magforce.com.

 

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 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.

 

Contact:

Anne Hennecke

MC Services AG

 

T +49 89 210228-18

F +49 89 210228-88

M +49 151 12 555 759

Email: anne.hennecke@mc-services.eu

 

01.10.2012

MagForce publishes half-year report

  • Comprehensive restructuring introduced
  •  Integration of medical opinion leaders into post-marketing trial to increase acceptance of NanoTherm® therapy
  • Strategic and distribution partnerships established
  • Cost savings expected to amount to million Euros due to a package of measures
  • Loss for the period reduced by 22% to €3.6 million

Berlin, Germany, October 1, 2012 MagForce AG (Frankfurt, Xetra: MF6), a leading medical device company in the field of nanomedicine with a focus on oncology, today announced the financial results for the first half of the 2012 fiscal year, ending June 30, 2012. Simultaneously, the company released details of a package of measures (see today’s press release “MagForce to radically enforce market setup strategy with new management team”). With this restructuring, MagForce is completing a period of important strategic refocus.

“In the first half of the year, we laid out the basic requirements for the acceptance and future commercialization of our NanoTherm® therapy, and for the future development of our company. Today we are concluding this phase of strategic focus with the introduction of vital measures and additions to the management team. Over the short term, we are concentrating all our efforts and financial resources on establishing NanoTherm® therapy in the area of oncology and consequentially on the post-marketing clinical trial in glioblastoma. Together with strategic and distribution partners, we want to reinforce the commercialization of NanoTherm® therapy, ensuring sufficient funding.” commented Christian von Volkmann, CFO.

In the first half of the year, MagForce was able to successfully finalize distribution partnerships with DELRUS (Russia) and Tek Grup (Turkey), as well as a development partnership with the Mayo Clinic (USA).

During the reporting period, the company recorded a loss of €3.6 million (prior year period: €4.6 million). The decline is essentially a result of the restructuring measures introduced at the end of 2011 and the accompanying strategic change. Personnel expenses decreased due to the reduction in staff, particularly in the second management level, as well as in commercial functions.

In the first half of the year, the company successfully raised €4.5 million by issuing new shares. After the reporting period end, two further capital increases took place with gross proceeds amounting to €665,000. The capital measures serve to safeguard liquidity and maintain business operations, as well as financing further business growth.

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 NanoActivatorTM 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 NanoActivatorTM are trademarks of MagForce AG in select countries.

For more information, please visit www.magforce.com.

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 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.

Contact:

Anne Hennecke

MC Services AG

 

T +49 89 210228-18

F +49 89 210228-88

M +49 151 12 555 759

Email: anne.hennecke@mc-services.eu

 

01.10.2012

MagForce to radically enforce market setup strategy with new management team

  •  Focus on most important value drivers in the short-term
  • Experienced senior executives added to the management board
  • Core functions will be centralized in Munich
  • Million Euro cost savings expected from restructuring measures

Berlin, Germany, October 1, 2012 – MagForce AG (Frankfurt, XETRA: MF6), a leading medical device company in the field of nanomedicine with a focus on oncology, today announced additions to the management board and further measures to enforce commercialization of NanoTherm® therapy. Thus, focussing on establishing the NanoTherm® therapy in the oncology market as well as on its commercialization for near-term value generation.

In the short to mid term, MagForce will dedicate its financial resources to the post marketing trial in glioblastoma, which is expected to start in early 2013 and is supposed to make a significant contri­bution to its strategic set up. Simultaneously, the Company will also focus on the commercialization of its NanoTherm® therapy with its distribution partners including DELRUS and TekGrup, development partners such as the Mayo Clinic for gastro-intestinal cancer and the Department of Urology at Duesseldorf University for prostate cancer, as well as the production of nanoparticles.

In line with this strategy, the Company’s core functions, including clinical and business development, medical affairs plus legal & IP will be concentrated at the MagForce site in Munich where these teams are already located. Production of nanoparticles, NanoActivatorsTM, software engineering as well as the finance department will remain at the Company’s registered office in Berlin. All early research activities will be reduced to a minimum and will be outsourced as deemed neccessary.

In this respect experienced senior executives are added to the management board. Prof Dr Hoda Tawfik, currently VP Clinical Development and Medical Affairs, will be appointed COO. Christian von Volkmann, currently acting CFO, will assume the position of CFO, both effective immediately. They will jointly lead the Company as co-CEOs going forward. The founder and long-term Board member Dr Andreas Jordan will step down from the management board of MagForce to pursue new projects, but will continue to serve the Company as an advisor.

Along with these measures the headcount of MagForce will be reduced from 27 to 12. These measures are meant to annually save the Company a seven digit Euro amount.

“With this restructuring MagForce is completing a period of important strategic refocus. In the short-term, we have to concentrate all our efforts and financial resources on the development of strategic partnerships as well as on establishing NanoTherm® therapy in the area of oncology. Thus, concentrating on the post-marketing clinical study planned at different sites in Germany, which is critical to achieving acceptance of our NanoTherm® therapy in the German medical community. We are encouraged about the progress we are making and need to ensure that we translate this momentum into commercial success,” commented Prof Dr Hoda Tawfik, COO of MagForce AG.

“The implementation of these measures announced today are essential to enforce the commercialization of NanoTherm® therapy,“ commented Norbert Neef, Chairman of the Supervisory Board of MagForce AG. “We strongly regret that this restructuring results in lay-offs and I thank all employees for their continued support. We sincerely thank Dr Jordan for his long term commitment and efforts in the previous years. Wae are glad that Dr. Jordan will continue to support us as an advisor.“

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 NanoActivatorTM 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 NanoActivatorTM are trademarks of MagForce AG in select countries.

For more information, please visit www.magforce.com.

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 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.

Contact:

Anne Hennecke

MC Services AG

 

T +49 89 210228-18

F +49 89 210228-88

M +49 151 12 555 759

Email: anne.hennecke@mc-services.eu

 

17.08.2012

Dr. Jan zur Hausen elected to the Supervisory Board of MagForce AG

  • Renowned life sciences and investment banking expert strengthens the company’s Supervisory Board

 

Berlin, Germany, August 17, 2012 MagForce AG (Frankfurt, XETRA: MF6), a leading medical device company in the field of nanomedicine with focus on oncology, announced today that Dr. Jan zur Hausen was unanimously elected to the company’s Supervisory Board at yesterday’s Annual General Meeting. He is taking over from Dr. Stefan Elßer, who resigned effective as of the end of the Annual General Meeting.

Dr. Jan zur Hausen (born in 1965) is a managing shareholder of Bergmann zur Hausen & Cie. GmbH, a corporate finance company that evolved from Sal. Oppenheim’s investment banking activities. While at Sal. Oppenheim, Dr. zur Hausen was responsible for numerous transactions in the life sciences area as Senior Vice President and Head of Healthcare.

Dr. zur Hausen has in-depth knowledge of health sciences and investment banking. He has a degree in biology, gained a Ph.D. in cell biology from the University of Basel, and previously worked at Hoffmann-La Roche, MPM Capital, Mulligan BioCapital, and DVC Deutsche Venture Capital, among others.

Dr. zur Hausen has known MagForce for many years now. “Dr. zur Hausen is an excellent addition to the Supervisory Board thanks to his many years’ experience in the areas of both life sciences and investment banking. We see his election as offering strong support for our current corporate strategy,” commented Dr. Andreas Jordan, Executive Board of MagForce AG. “We are convinced that his expertise will enable him to provide us with important advice as we continue on our path and we would like to thank Dr. Elßer, who worked dedicatedly for MagForce for many years, for resigning from the Supervisory Board and making this step possible.”

“I am looking forward to the challenges at MagForce AG and to my new tasks,” said Dr. Jan zur Hausen following his election. “MagForce is going through a difficult period at the moment, but it is on the right track. I hope that I will be able to make a positive contribution to the company’s future development.”

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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 NanoActivatorTM 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. For more information, please visit www.magforce.com.

Disclaimer

This release may contain forward-looking statements and information that 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 differ substantially from these forward-looking statements. MagForce AG assumes no obligation to update these forward-looking statements or to correct them in case of developments differing from those anticipated.

 

Contact:
Anne Hennecke
MC Services AG

T +49 89 210228-18
F +49 89 210228-88
M +49 151 12 555 759
Email: