MEDG Medgenics(Regs)

 

TIDMMEDG 
 
RNS Number : 7554X 
Medgenics Inc 
20 August 2009 
 

Medgenics, Inc. 
('Medgenics' or the 'Company') 
 
 
New Medgenics CLOSING BRINGS ONGOING fund raising TOTAL to $520,000 
 
 
August 20, 2009 
 
 
As part of ongoing fund raising, Medgenics is pleased to announce the commitment 
of an additional $255,000 in convertible debentures, bringing the total received 
or committed to $520,000. This figure includes the First Round closing figure, 
announced June 22nd. The new debentures comprise further investments of $100,000 
from Director Lord Leonard Steinberg, $50,000 from an entity connected with 
Director Joel Kanter, $55,000 in new investments by shareholders who are 
physicians with expertise in the clinical field addressed by Medgenics' lead 
product, EPODURE, and another $50,000 from new investors. Of the $520,000 raised 
in the current round to date, Directors of the Company have taken up $295,000. 
Commenting on the closing of the most recent tranche of fund raising, Dr. Andrew 
Pearlman, CEO of Medgenics commented: 
"We are very encouraged by the fact that these new funds have come not only from 
new investors but also as new investment by existing shareholders, particularly 
those with expertise in the clinical field of our lead product, 
EPODURE. Together with additional participation by Directors Lord Steinberg and 
Joel Kanter, these investments demonstrate continued confidence in the Company. 
These funds give impetus to our ongoing fundraising efforts as we continue to 
see impressive results from our ongoing Phase I/II clinical study of EPODURE in 
treating renal anemia and while we make further advances towards strategic 
partnering. We anticipate being in a position to make further announcements on 
both of these fronts in the next few weeks." 
Notes on Debentures: 
The Debentures are not redeemable by the Company, are unsecured, mature on the 
second anniversary of the date of issuance and accrue interest at a rate of 10% 
per annum. In the event of default under the Debentures, the interest rate shall 
increase 2% per month for every month the Debentures are in default to a maximum 
of 18% per annum. According to the terms of the Debentures, they will 
automatically convert into Common Shares, together with the issuance of a 
significant amount of warrants to the Debenture holders upon conversion of the 
Debentures, if the Company completes a qualified transaction, such as a public 
offering of securities in the U.S. or certain merger or acquisition 
transactions. Such warrants will be immediately exercisable upon issuance and 
shall expire five years from the date of issuance. The exercise price under the 
warrants shall be 110% of the pricing in the applicable qualified transaction. 
On the assumptions that: the conversion price of the Debentures is US $0.07; the 
full conversion of US $520,000 in principal amount of Debentures; no conversion 
of accrued interest and issuance of 10% broker warrants as commission (the 
"Assumptions"), the conversion in full of the Debentures will give rise to the 
issuance of 7,428,571 new Common Shares, equivalent to approximately 6 per cent 
of the outstanding Common Shares as enlarged by such issue. Based on the 
Assumptions, the maximum number of Common Shares to be issued on exercise in 
full of the warrants issued under these arrangements to investors will be 
2,600,000 Common Shares, which would result in an additional US $200,200 in 
proceeds to the Company upon payment of the exercise price. It should be noted, 
however, that there can be no assurance that the actual conversion price will 
not be less or greater than the assumed $0.07 conversion price or that the other 
Assumptions will, ultimately, prove to be correct. 
 
 
 
For further information, contact: 
 
 
Medgenics, Inc.                                 +972 4 902 8900 
Dr. Andrew L. Pearlman 
 
 
Blomfield Corporate Finance (Nominated adviser) +44 207 489 4500 
James Pinner or 
Alan MacKenzie 
 
 
SVS Securities plc (Broker)                     +44 207 638 5600 
Ian Callaway 
 
 
Grayling Global                                 +44 207 255 1100 
Jonathan Shillington or 
Alistair Scott 
 
 
NOTES TO EDITORS: 
 
 
Medgenics, Inc. is a clinical-stage biopharmaceutical company developing its 
unique tissue-based Biopump platform technology to provide sustained-action 
protein therapy for the treatment of a range of chronic diseases. 
 
 
Medgenics currently has two products in development based on this technology: 
 
 
  *  EPODURE - producing erythropoietin (EPO) to treat anemia 
  *  INFRADURE - producing interferon-alpha (IFN-a) to treat Hepatitis-C 
 
 
 
The Company's ongoing Phase I/II clinical trial for EPODURE in anemic patients 
continues to demonstrate proof of concept of the Biopump.  Designed to produce 
and deliver a therapeutic dose of EPO steadily for up to six months or more, 
EPODURE Biopumps are already maintaining effective anemia treatment for more 
than 10 months in earliest patients in the ongoing study, even with low dose 
administered. 
 
 
Medgenics intends to develop its innovative products and bring them to market 
via multiple strategic partnerships with major pharmaceutical and/or medical 
device companies, starting with EPODURE and INFRADURE. 
 
 
Medgenics plans to raise the requisite funds during 2009/10 to enable it to 
follow the current trial of EPODURE with a Phase IIb clinical trial in the US 
starting in 2010, and in addition, to commence a Phase I/II trial of INFRADURE 
in Hepatitis-C patients in Israel also during 2010. 
 
 
Beyond these, Medgenics plans to develop and/or out-license a pipeline of future 
Biopump products targeting the large and rapidly growing global protein therapy 
market, which is forecast to reach US $87 billion by 2010. Other potential areas 
include multiple sclerosis (interferon-ß), hemophilia (Factor VIII), pediatric 
growth hormone deficiency (human growth hormone) and diabetes (insulin). 
 
 
Founded in 2000, Medgenics is a US-incorporated company with major operations in 
Misgav, Israel. Medgenics was admitted to the London AIM in December 2007 (AIM: 
MEDG and AIM: MEDU). 
 
 
www.medgenics.com 
 
 
CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS 
This release contains forward-looking statements, which include all statements 
other than statements of historical fact, including (without limitation) those 
regarding the Company's financial position, business strategy, plans and 
objectives of management for future operations. These statements relate to 
future events, prospects, developments and strategies. Forward-looking 
statements are sometimes identified by their use of the terms and phrases such 
as "estimate," "project," "intend," "forecast," "anticipate," "plan," "planning, 
"expect," "believe," "will," "will likely," "should," "could," "would," "may" or 
the negative of such terms and other comparable terminology. All such 
forward-looking statements are based on current expectations and are subject to 
risks and uncertainties. Should any of these risks or uncertainties materialize, 
or should any of the Company's assumptions prove incorrect, actual results may 
differ materially from those included within these forward-looking statements. 
Accordingly, no undue reliance should be placed on these forward-looking 
statements, which speak only as of the date made. The Company expressly 
disclaims any obligation or undertaking to disseminate any updates or revisions 
to any forward-looking statements contained herein to reflect any change in the 
Company's expectations with regard thereto or any change in events, conditions 
or circumstances on which any such statements are based. As a result of these 
factors, the events described in the forward-looking statements contained in 
this release may not occur. 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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