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Medigene secures funding for its cancer immunotherapy programmes through capital increase

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  • Placement of all available new shares close to the current market price
  • Participation of new renowned institutional investors
  • Extension of cash reach at least until end of 2016

Martinsried/Munich, 15 July 2014. Medigene AG (MDG1, Frankfurt, Prime Standard) completed the capital increase announced on 27 June 2014 for the funding of its cancer immunotherapy programmes. Gross proceeds of EUR 15.9 million were achieved by placing the maximum number of new shares and the issuance of convertible bonds. With that, the Company's cash reach will be extended at least until the end of 2016. A total of 3,016,082 new shares at a price of EUR 5.00 per share and convertible bonds divided into 818,658 notes in the nominal amount of EUR 1.00 per note were placed with existing Medigene shareholders and mainly new institutional investors. The offering of new shares was oversubscribed. With the capital increase, Medigene made full use of its remaining authorised capital currently available. 

Dr Frank Mathias, Chief Executive Officer of Medigene AG: "This capital measure enables us to achieve important milestones in the clinical validation of the T-cell based therapy platforms acquired with Trianta and enhances our new positioning in cancer immunotherapy. Medigene is now well placed to develop valuable new therapeutic approaches to life-threatening cancers which are difficult to treat, while creating attractive options for cooperation and licensing agreements with partner companies in the pharmaceutical and biotechnology sector."

Peter Llewellyn-Davies, Chief Financial Officer of Medigene AG: "Medigene has successfully placed the new shares close to the current market price without discount and with minimal possible dilution. We have also achieved our goal of gaining new renowned institutional investors for Medigene from Europe and the US, including leading biotechnology specialist investors. With its first larger cash capital increase since 2007, Medigene has secured the capital necessary to successfully implement our upcoming objectives and to generate clinical data with our immunotherapy programs over the next few years."

Prof Dolores Schendel, Chief Scientific Officer of Medigene AG: "This finance package makes it possible for us to realize important therapeutic objectives, which scientists, physicians and patients are following with great hope and interest. Building on many years of research and development experience at the Helmholtz Zentrum we can now advance our cancer immunotherapy work at Medigene with a strong team and sufficient resources. We are dedicated to our shared goal to deliver an improved outlook for very sick patients."

By issuing 3,016,082 new shares from authorised capital, the share capital of Medigene AG increases by EUR 3,016,082 from EUR 10,889,950 to EUR 13,906,032. The gross proceeds generated from the issuing of new shares amounts to EUR 15,080,410. The new shares will be admitted to trading with ISIN DE000A11QVD8, securities identification number WKN A11QVD and stock exchange symbol MDG9 from 22 July up to 14 August 2014. From 15 August 2014 on, the new shares will have the same ISIN, securities identification number (WKN) and stock exchange symbol as the existing Medigene shares (ISIN: DE000A1X3W00, WKN: A1X 3W0, MDG1).

By issuing convertible bonds divided into 818,658 notes in the nominal amount of EUR 1.00 per note, Medigene achieved gross proceeds of EUR 818,658.. The bond is structured as a zero coupon note. Subject to certain non-conversion periods the conversion right may be exercised by noteholders from 4 September 2014 until the maturity date at a conversion price of EUR 5.00 per share for conversion into up to 163,731 new shares. At the maturity date, which is two years after the issue date, the Company is entitled to require a mandatory conversion of the notes into shares.

Baader Bank AG acted as sole bookrunner.

Medigene's Immunotherapies: Medigene has positioned itself at the forefront of personalized T cell immunotherapy through the acquisition of Trianta Immunotherapies GmbH. Trianta is  focusing on three complementary immunotherapy platforms to target various tumour types and stages. Each one is focused on T cells, a type of white blood cell that plays a pivotal role in immunity. The company develops new generation antigen-tailored dendritic cell (DC) vaccines, T cell receptor (TCR)-based adoptive cell therapy and T cell-targeted antibodies (TABs). Currently the DC vaccines are being evaluated in two ongoing investigator-initiated trials in clinical phases I/II and II. Medigene/Trianta is concentrating on the further development of DC vaccines and the TCR-based adoptive cell therapy in hematological malignancies and plans to initiate a further clinical study for the DC vaccine in AML in 2014. Within the TCR-based adoptive cell therapy the company is continuing the development of a GMP-compliant manufacturing process and is preparing the clinical development of a first product candidate. Preclinical development of the third platform TABs is continuing with the aim of achieving proof of principle.

Medigene AG is a publicly listed (Frankfurt: MDG1, prime standard) biotechnology company headquartered in Martinsried near Munich, Germany. Medigene concentrates on the development of personalized T cell immunotherapies with focus on haematological malignancies. Medigene is the first German biotech company to have revenues from a marketed product, which is distributed by commercial partners. Medigene has various drug candidates in clinical development and it is developing highly innovative treatment platforms. For more information, please visit www.medigene.com.

This press release contains forward-looking statements representing the opinion of Medigene as of the date of this release. The actual results achieved by Medigene may differ significantly from the forward-looking statements made herein. Medigene is not bound to update any of these forward-looking statements. Medigene® is a registered trademark of Medigene AG. This trademark may be owned or licensed in select locations only.

Contact Medigene
Julia Hofmann, Anja Clausnitzer
Tel.: +49 - 89 - 20 00 33 - 33 01
Email: investor@medigene.com

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