Issue of Equity
May 26 2010 - 2:00AM
UK Regulatory
TIDMMEDG
RNS Number : 5494M
Medgenics Inc
26 May 2010
For release: 26 May 2010
Medgenics, Inc.
('Medgenics' or the 'Company')
MEDGENICS SUCCESSFULLY CLOSES ADDITIONAL FINANCING ROUND
Medgenics (AIM: MEDG and MEDU), the company that has developed a novel
technology for the manufacture and delivery of therapeutic proteins continuously
in patients using their own tissue, is pleased to announce that it has
successfully closed an additional round of financing, raising gross proceeds of
GBP836,384.90 from both UK and US accredited investors. This includes further
investment from directors Joel Kanter and Eugene Bauer of GBP6,909.95 and
GBP103,650.00, 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 resultant
directors' interests* and significant shareholdings* will be as follows
(excluding interests in warrants, options and debentures as previously
announced):
+--------------------------------+---------------+------------+
| Name | Number of | % of |
| | Common Shares | Issued |
| | | Share |
| | | Capital* |
+--------------------------------+---------------+------------+
| | | |
+--------------------------------+---------------+------------+
| The Executors of Lord Leonard | 18,509,725 | 12.0% |
| Steinberg's estate | | |
+--------------------------------+---------------+------------+
| Joel Kanter (director) | 16,199,635 | 10.5% |
| including related interests | | |
+--------------------------------+---------------+------------+
| CIBC Trust Company (Bahamas) | 7,605,985 | 4.9% |
| Ltd. ** | | |
+--------------------------------+---------------+------------+
| Alta California Partners III | 7,412,472 | 4.8% |
| L.P. | | |
+--------------------------------+---------------+------------+
| Platinum Montaur Life Sciences | 7,190,208 | 4.6% |
| I, LLC | | |
+--------------------------------+---------------+------------+
| Vision Opportunity Master Fund | 7,094,851 | 4.6% |
| Ltd. | | |
+--------------------------------+---------------+------------+
| UK Private Healthcare Limited | 7,000,000 | 4.5% |
+--------------------------------+---------------+------------+
| Chicago Investments Inc. ** | 5,782,807 | 3.7% |
+--------------------------------+---------------+------------+
| Koor Corporate Venture | 5,393,821 | 3.5% |
| Capital, L.P. | | |
+--------------------------------+---------------+------------+
| HB Markets plc | 5,000,000 | 3.2% |
+--------------------------------+---------------+------------+
| Kanter Family Foundation ** | 2,497,233 | 1.6% |
+--------------------------------+---------------+------------+
| Andrew Pearlman (director) | 1,235,019 | 0.8% |
+--------------------------------+---------------+------------+
| Eugene Bauer (director) | 282,032 | 0.2% |
+--------------------------------+---------------+------------+
The percentage of Common Shares not in public hands will be 24.5%*
Note
* Excluding any Common Shares issued pursuant to the block admission
between 4 December 2009 and the date of this announcement.
** Included within the interests of Joel Kanter, a director of the Company
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.
So far, seven patients have been treated in the phase I/II fixed-dose anaemia
trial using a single administration of the EPODURE Biopumps. This single
treatment is intended to replace months of frequent EPO injections now used in
standard practice. To date six patients have received EPODURE Biopumps producing
EPO at the lowest recommended dosage and one patient has received EPODURE
Biopumps producing EPO at the next dosing level. EPO was successfully delivered
by the treatment in all seven patients, with even the lowest dose causing the
levels of haemoglobin in most patients to be sustained for months within the
target range without any EPO injections. In one patient the haemoglobin level
has been stabilised in the range for more than 19 months without requiring any
of the weekly EPO injections he had received for more than a year prior to
EPODURE treatment. Patients have found the treatment satisfactory and there
have been no adverse events reported. Additional information on these trials can
be found on the Company's website which can be found at www.medgenics.com.
In the continuation of this trial, additional patients will be treated using
higher fixed dosage levels. This will be accomplished by administering more
EPODURE Biopumps, titrated to deliver higher daily levels of EPO than with the
first patients in the trial. This is designed to show dose response for EPODURE
in a similar manner to that known for injected EPO, where higher doses result in
statistically higher haemoglobin levels, even though dosage response and
requirements vary from patient to patient. The treatment of additional patients
in the trial is expected to provide substantially more data to further
corroborate the strong results to date, and to show that this positive
therapeutic effect will occur for 6 months or longer.
As this is an open trial, the Company anticipates that it will continue to
provide updates as patients are treated and followed throughout 2010.
The Company further anticipates additional partnering activity and new programs
in the product pipeline during 2010.
Andrew Pearlman, CEO of Medgenics, commented:
"With these additional funds we can accelerate the recruitment and treatment of
patients at higher doses in this trial, and take us through completion of the
middle dose group. This will also give us important information to help us
develop ways to titrate the dose to meet the individual needs of the patient in
future clinical practice.
As we generate even more data on clinical use, we believe it will continue to
demonstrate that the Biopump represents the ultimate in personalised medicine,
offering a new and cost effective way to revolutionise both the manufacture and
delivery of therapeutic proteins directly in the patient. We look forward to
updating the market with further positive news throughout 2010."
For further information, please contact:
Andrew Pearlman +972 4 902 8900
CEO
Medgenics, Inc
Mike Wort / Anna Dunphy +44 207 861 3838
De Facto Communications
James Pinner / Derek Crowhurst +44 207 444 0800
Religare Capital Markets
Ian Callaway / Alex Mattey +44 207 638 5600
SVS Securities plc
Jonathan Senior +44 207 776 1219
Nomura Code
Notes to Editors:
About Medgenics:
Medgenics is a commercial -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. The first revenue
generating commercial deal with a well known multinational pharmaceutical
company was negotiated in late 2009 and we look forward to generating additional
deals to further commercialise the Biopump platform technology.
Biopumps are made using needle biopsies taken from the lower layer of the
patient's skin under local anaesthetic, and processed during 10-14 days to
become 30 mm long tissue biofactories producing the required protein. The
requisite number of Biopumps are injected under the patient's skin to provide
sustained protein production and delivery for many months. The Company is
developing the Biopump to provide substantially greater safety and reliability
in protein treatment in a more cost effective manner than experienced with the
existing injected protein therapies. Medgenics currently has three products in
development based on this technology and addressing the indications of:
- Anaemia - using EPODURE, a Biopump producing erythropoietin (EPO)
- Hepatitis-C - using INFRADURE - a Biopump producing interferon-alpha (IFN-a)
- Haemophilia - using a Biopump to produce clotting Factor VIII
The Company's Phase I/II clinical trial using EPODURE to treat anaemia in
patients with chronic kidney disease, has demonstrated proof of concept of the
Biopump. Designed to produce and deliver a therapeutic dose of EPO steadily for
six months or more, EPODURE Biopumps have already provided effective anaemia
treatment in most of these patients for 6-12 months, even at the low
administered dose.
Medgenics intends to develop its innovative products and bring them to market
via multiple strategic partnerships with major pharmaceutical and/or medical
device companies. In addition to treatments for Anaemia, Hepatitis-C, and
Haemophilia, 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
applications of Biopumps producing various proteins include multiple sclerosis,
arthritis, pediatric growth hormone deficiency, obesity, and diabetes.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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