TIDMLMT
RNS Number : 9759T
Lombard Medical Technologies PLC
20 December 2012
Press Information
Lombard Medical Technologies PLC
("Lombard Medical" or "the Company")
Extension of Long Stop Date for Second Tranche of May 2011
Fundraising
London, UK, 20 December 2012 - Lombard Medical Technologies PLC
(AIM: LMT), the specialist medical technology company focused on
innovative vascular products, today announces a six month
extension, from 31 December 2012 to 30 June 2013, of the existing
Long Stop Date for the c. GBP14.1m Second Tranche of the two
tranche placing and subscription announced by the Company on 20
April 2011 (the "May 2011 Fundraising"). Lombard Medical also
announces that, in addition to certain existing shareholders, the
Second Tranche will be supported by LSP Life Sciences Fund N.V.
("LSP"). LSP will replace MVM Life Science Partners LLP ("MVM"),
who have decided to assign their rights to subscribe for new
ordinary shares in the Second Tranche, pursuant to the terms of the
original subscription agreement dated 20 April 2011.
Lombard Medical received a clean Good Manufacturing Process
(GMP) audit of its UK manufacturing facility by the FDA in October
2012 and while approval remains possible before 31 December 2012,
any approval process with a regulatory authority, such as the FDA,
can be subject to delays beyond the control of the applicant.
Therefore, the Board considers it prudent to extend the existing
Long Stop Date to 30 June 2013. Should FDA approval of Aorfix(TM)
fall into early H1 2013, the extension of the Long Stop Date will
ensure that the Company has sufficient resources, following receipt
of funds from the Second Tranche, to launch Aorfix(TM) in the U.S.
Aorfix(TM) will be launched through its own direct sales force to
be recruited by the Company.
LSP is one of Europe's largest specialised healthcare and
biotechnology investment firms with offices in Amsterdam, Munich
and Boston. In view of LSP's specialist healthcare focus and
international reach, the Board welcomes its support and
participation in the Second Tranche. LSP's presence in the U.S. is
particularly relevant given the strategic importance of this market
for the Company going forward. LSP will replace MVM, who have
decided to assign their rights to subscribe for new ordinary shares
in the Second Tranche. MVM remain supportive of the Company and
will continue to hold a seat on the Board. On the satisfaction of
the Second Tranche Conditions, LSP will subscribe GBP2.8m for 2.0m
shares, assuming a Second Tranche subscription price of 140 pence
per share, representing 6.6% of Lombard Medical's issued share
capital as enlarged by the Second Tranche of the May 2011
Fundraising.
The Company expects that FDA approval of Aorfix(TM) will include
an indication to treat patients with angulations at the neck of the
aneurysm of up to 90 degrees. This would make Aorfix(TM) the only
AAA endovascular stent graft to have this high angle indication in
the U.S. Funds from the Second Tranche will ensure the Company has
sufficient resources to launch Aorfix(TM) in the U.S. In addition
to building the U.S. sales and marketing infrastructure, funds from
the Second Tranche will also be used to expand production capacity
to meet anticipated demand for the Aorfix(TM) stent graft, complete
the planned extension of stent graft sizes and develop the next
generation, lower profile delivery device. The funds will also be
used to redeem the full amount of the GBP3m Convertible Loan Notes
issued to Invesco Asset Management Limited ("Invesco"), to the
extent that Invesco has not already converted, or indicated its
willingness to convert, the Convertible Loan Notes.
Additional funding will subsequently be sought to allow the
Company to achieve its longer-term goals in this important
market.
Simon Hubbert, CEO of Lombard Medical Technologies,
commented:
"We welcome the support of LSP, one of Europe's largest
specialised healthcare and biotechnology investment firms, which
signals their confidence in Aorfix(TM) . We are also pleased our
shareholders, in continuing to support the Company, have ensured
that we have sufficient resources to launch Aorfix(TM) in the U.S.
even in the event that approval of Aorfix(TM) slips into H1
2013.
"We have made significant progress in recent weeks including the
successful FDA audit of our UK manufacturing facility, and continue
to expect the near-term approval of Aorfix(TM) . A broad label that
specifically includes treatment of patients with more tortuous
anatomies and having angulations of up to 90 degrees, would
uniquely position Aorfix(TM) in the U.S., the largest endovascular
repair market for Abdominal Aortic Aneurysms."
Geraldine O'Keeffe, Partner LSP, commented:
"With its primary focus on innovative healthcare companies in
Europe - LSP has been following with interest the progress of
Lombard Medical for a number of years. We are delighted to be
afforded the opportunity to invest in the Company at such an
exciting stage in its development."
-Ends-
For further information:
Lombard Medical Technologies PLC Tel: 01235 750 800
Simon Hubbert, Chief Executive Officer
Ian Ardill, Chief Financial Officer
Canaccord Genuity Limited Tel: 020 7523 8000
Lucy Tilley / Rob Collins / Tim Redfern
FTI Consulting Tel: 020 7831 3113
Simon Conway / Susan Stuart / Victoria
Foster-Mitchell
About Lombard Medical
Lombard Medical Technologies PLC (AIM: LMT), is a medical device
company focused on device solutions for the $1.2 billion dollar per
annum abdominal aortic aneurysm (AAA) repair market. AAAs are a
balloon-like enlargement of the aorta which, if left untreated, may
rupture and cause death. Approximately 4.5 million people are
living with AAAs in the developed world and each year 600,000 new
cases are diagnosed. The market for endovascular stent grafts for
this application is expected to grow to $1.6 billion by 2015. The
Company's lead product, Aorfix(TM), is an endovascular stent graft
which has been specifically designed to solve the problems that
exist in treating complex tortuous anatomy which is often present
in advanced AAA disease. Aorfix(TM) is currently being
commercialised in the EU, and has been submitted to the FDA for
approval in the U.S.
The Company is headquartered in Oxfordshire, with operations in
Ayrshire and Phoenix, USA.
Further background on the Company can be found at
www.Lombardmedical.com
About Life Sciences Partners
LSP (Life Sciences Partners) is a leading independent investment
firm providing venture capital and growth financing for private and
public life-science companies. Since the late 1980s, LSP's
management has invested in a large number of highly innovative
enterprises, many of which have grown to become leaders of the
global life-science industry. With over EUR 650m under management
and offices in Amsterdam, Munich and Boston, LSP is one of Europe's
largest and most experienced specialist life-science investors.
Information about LSP Life Sciences Fund can be found at
www.lsplifesciencesfund.com
May 2011 Fundraising
In May 2011, the Company completed a two tranche fundraising,
incorporating a placing, subscription and offer, of GBP27.2m before
expenses. The first tranche of GBP13.0m was supported by certain
existing shareholders and two new shareholders at the time,
Abingworth LLP and MVM Life Science Partners LLP. These same
shareholders committed to subscribing for further shares in the
Company through a GBP14.2m second tranche of fundraising ("Second
Tranche") under pre-agreed terms and subject to certain milestones
and conditions being achieved (or waived by certain of the
investors). The original Long Stop Date of the Second Tranche was
31 December 2012.
Convertible Loan Notes
In March 2012, the Company issued GBP3m Convertible Loan Notes
to Invesco Asset Management Limited. The interest rate on the
Convertible Loan Notes is 8.0 per cent. per annum compounded
annually and is payable by the Company on 30 June 2012, 31 December
2012, 30 June 2013 and 1 September 2013. The Convertible Loan Notes
holder is, at any time between 1 July 2013 and 1 September 2013,
entitled to convert the Convertible Loan Note plus any accrued but
unpaid interest into new Ordinary Shares at a conversion price of
140 pence per Ordinary Share.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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