TIDMMEDG
RNS Number : 7682S
Medgenics Inc
15 September 2010
Medgenics, Inc.
('Medgenics' or the 'Company')
Exercise of Warrants and Options by Directors, Extension of Warrants and Options
and Issuances of Common Shares, Warrants and Options
15 September 2010
Medgenics, Inc. (AIM: MEDG, MEDU), the company that has developed a novel
technology for the manufacture and delivery of therapeutic proteins continuously
in patients using their own tissue, announces that, on 13 September 2010, three
directors delivered executed exercise notices committing to exercise certain
warrants and/or options, resulting in aggregate proceeds to the Company of
$316,749.
Dr. Eugene Bauer (Chairman) committed to exercise warrants over 1,000,000 common
shares of par value $0.0001 each in the Company ("Common Shares") at an exercise
price of US $0.071 per share ($71,000 aggregate exercise price) and to use the
cashless exercise mechanism to exercise warrants over a further 2,000,156 Common
Shares. The fair market value of the Common Shares utilized to calculate the
number of Common Shares issued under such mechanism was the average of the
MEDU.LN closing price for the ten trading days prior to the commitment to
exercise (which, as previously announced, the Board believes represents an
accurate reflection of the Company's value), which equates to 15.1 pence per
share or, based on current exchange rates, $0.234. Using this cashless exercise
method, Dr. Bauer will be allotted 1,392,528 Common Shares and, together with
the warrants exercised for cash, will be allotted a total of 2,392,528 Common
Shares as a result of these warrant exercises.
Dr. Stephen McMurray committed to exercise warrants over 1,069,575 Common Shares
and options over 1,599,549 Common Shares, each having an exercise price of US
$0.071 per share using the cashless exercise mechanism. Based on the same
cashless exercise pricing mechanism described above, Dr. McMurray will be
allotted 744,649 Common Shares as a result of the warrant exercise and 1,113,622
Common Shares as a result of the option exercise, or 1,858,271 Common Shares in
total.
The Company has also received executed exercise notices from Mr. Joel Kanter and
certain parties related to Mr. Kanter with respect to the exercise of warrants
and options. Mr. Kanter committed to exercise options to purchase 1,599,549
Common Shares at an exercise price of $0.071 per share, or an aggregate exercise
price of $113,568. In addition, Chicago Investments, Inc. committed to exercise
warrants to purchase 14,080,734 Common Shares at an exercise price of $0.0005
per share, or an aggregate exercise price of $7,040 and warrants to purchase an
additional 1,069,575 Common Shares at an exercise price of $0.117 per share, or
an aggregate exercise price of $125,140. In addition, Chicago Private
Investments, Inc. committed to exercise warrants to purchase 3 Common Shares at
an exercise price of $0.25 per share, or an aggregate exercise price $0.75.
The Company intends to use the aggregate $316,749 in warrant and option exercise
proceeds received from these directors and their related parties to fund current
operations and for general working capital purposes.
The Company also announces that it is issuing 1,067,800 Common Shares in
settlement of advisers' fees in relation to the Company's ongoing fundraising
endeavours and consultancy advice to the remuneration committee.
Application will be made to the London Stock Exchange for all of these
22,068,460 Common Shares to be admitted to trading on AIM, dealings are expected
to commence at 8:00 a.m. on 22 September 2010.
Following the admission to trading of the new Common Shares, the Company's total
issued share capital will be 177,096,014 Common Shares and the percentage of AIM
Securities held by officers, directors and their affiliates will be 32%.
The Company also announces that, pursuant to a resolution of the Board of
Directors (excluding Andrew Pearlman who abstained) unanimously passed at a
meeting held on 13 September 2010 following conclusion of the Annual Meeting,
the Company has resolved to extend the expiry date of certain warrants and
options held by its Chief Executive Officer, Dr. Andrew L. Pearlman, from 31
March 2011 to 31 March 2016, consisting of (i) warrants to purchase 31,681,652
Common Shares at an exercise price of $0.071 per share, (ii) warrants to
purchase 1,257,285 Common Shares at an exercise price of $0.001 per share, and
(iii) options to purchase 6,398,216 Common Shares at an exercise price of $0.071
per share. This extension is considered a related party transaction as defined
by the AIM Rules for Companies and, therefore, the directors (excluding Dr.
Pearlman) confirm that they consider, having consulted with the Company's
Nominated Adviser (Religare Capital Markets), that the terms of this transaction
are fair and reasonable insofar as the Company's shareholders are concerned.
All of the other terms of these warrants and options remain the same.
The Company also announces that, after thorough consultation with its
compensation consultant and pursuant to a resolution of the Board of Directors
unanimously passed on 14 September 2010, the Company approved the grant of
options to purchase 1,000,000 Common Shares under the Company's 2006 Stock
Incentive Plan at an exercise price of $0.234 per share to each of Dr. Bauer,
Mr. Kanter, Mr. Brukardt and Dr. McMurray, non-executive directors of the
Company, in recognition of their past service to the Company in 2008 and 2009
and for their continued service in 2010. Such options shall have a 10-year term
and shall vest in equal installments over three years. The Company also
approved, pursuant to a resolution of the Board of Directors unanimously passed
on 13 September 2010, the grant of options to purchase 450,000 Common Shares at
an exercise price of $0.234 per share to Dr. Alastair Clemow who joined the
Board on 17 August 2010 as previously announced. Such options shall also have a
10-year term and shall vest in equal installments over three years.
The Company also announces that on 13 September 2010 the Company had committed
to grant options to purchase 667,397 Common Shares under the Company's 2006
Stock Incentive Plan at an exercise price of $0.234 per share to each of Mr.
Burt Rosen and Dr. Stephen Ettinger, new members to the Company's Strategic
Advisory Board as previously announced. Such options shall have a 10 year term
and shall vest in equal installments over three years.
The Company also announces that it has agreed to issue to a consultant, in lieu
of cash for services rendered, a warrant to purchase 397,949 Common Shares at an
exercise price of $0.091 per share. Such warrant shall have a 5-year term and
shall be immediately exercisable.
No application will be made for the above described options or warrants to be
admitted to trading on the AIM market of the London Stock Exchange or any other
stock exchange.
Following the above transactions, the interests of the directors of the Company
and their related parties in the Common Shares are as follows:
+---------------+----------+----------------+------------+----------------+------------+------------+
| Director | | Common | Instrument | Number | Expiry | Exercise |
| | | Shares | | | Date | Price |
+---------------+----------+----------------+------------+----------------+------------+------------+
| Dr. Eugene | | 2,674,560 | | | | |
| Bauer | | | | | | |
+---------------+----------+----------------+------------+----------------+------------+------------+
| | | | Options | 3,199,097 | 30.3.2011 | $0.071 |
+---------------+----------+----------------+------------+----------------+------------+------------+
| | | | Options | 2,881,434 | 14.11.2012 | $0.210 |
+---------------+----------+----------------+------------+----------------+------------+------------+
| | | | Options | 1,000,000 | 14.09.2020 | $0.234 |
+---------------+----------+----------------+------------+----------------+------------+------------+
| | | | | | | |
+---------------+----------+----------------+------------+----------------+------------+------------+
| Total | | 9,755,091 | | | | |
| interests | | | | | | |
+---------------+----------+----------------+------------+----------------+------------+------------+
| | | | | | | |
+---------------+----------+----------------+------------+----------------+------------+------------+
| Mr. Gary | | 1,106,416 | | | | |
| Brukardt | | | | | | |
+---------------+----------+----------------+------------+----------------+------------+------------+
| | | | Warrants | 2,117,758 | 21.6.2011 | $0.071 |
+---------------+----------+----------------+------------+----------------+------------+------------+
| | | | Options | 1,599,549 | 18.09.2011 | $0.071 |
+---------------+----------+----------------+------------+----------------+------------+------------+
| | | | Options | 934,680 | 14.11.2012 | $0.210 |
+---------------+----------+----------------+------------+----------------+------------+------------+
| | | | Options | 1,000,000 | 14.09.2020 | $0.234 |
+---------------+----------+----------------+------------+----------------+------------+------------+
| Total | | 6,758,403 | | | | |
| interests | | | | | | |
+---------------+----------+----------------+------------+----------------+------------+------------+
| | | | | | | |
+---------------+----------+----------------+------------+----------------+------------+------------+
| Dr. Alastair | | - | | | | |
| Clemow | | | | | | |
+---------------+----------+----------------+------------+----------------+------------+------------+
| | | | Options | 450,000 | 13.09.2020 | $0.234 |
+---------------+----------+----------------+------------+----------------+------------+------------+
| Total | | 450,000 | | | | |
| interests | | | | | | |
+---------------+----------+----------------+------------+----------------+------------+------------+
| | | | | | | |
+---------------+----------+----------------+------------+----------------+------------+------------+
| Mr. Joel Kanter & related entities | | | | |
+-------------------------------------------+------------+----------------+------------+------------+
| Mr. Joel | | 1,599,549 | | | | |
| Kanter | | | | | | |
+---------------+----------+----------------+------------+----------------+------------+------------+
| | | | Options | 1,708,110 | 14.11.2012 | $0.210 |
+---------------+----------+----------------+------------+----------------+------------+------------+
| | | | Options | 1,000,000 | 14.09.2020 | $0.234 |
+---------------+----------+----------------+------------+----------------+------------+------------+
| Kanter Family | | 2,497,233 | Warrants | 96,413 | 13.02.2012 | $0.250 |
| Foundation | | | | | | |
+---------------+----------+----------------+------------+----------------+------------+------------+
| CIBC Trust | | 7,605,985 | Warrants | 3,059,192 | 31.03.2011 | $0.071 |
| Company | | | | | | |
| (Bahamas) | | | | | | |
| Limited | | | | | | |
+---------------+----------+----------------+------------+----------------+------------+------------+
| | | | Warrants | 450,000 | 13.02.2012 | $0.250 |
+---------------+----------+----------------+------------+----------------+------------+------------+
| Chicago | | 20,933,116 | | | | |
| Investments, | | | | | | |
| Inc. | | | | | | |
+---------------+----------+----------------+------------+----------------+------------+------------+
| Chicago | | 240,465 | | | | |
| Private | | | | | | |
| Investments, | | | | | | |
| Inc. | | | | | | |
+---------------+----------+----------------+------------+----------------+------------+------------+
| Windy City, | | 48,148 | | | | |
| Inc. | | | | | | |
+---------------+----------+----------------+------------+----------------+------------+------------+
| Total | | 39,238,211 | | | | |
| interests | | | | | | |
+---------------+----------+----------------+------------+----------------+------------+------------+
| | | | | | | |
+---------------+----------+----------------+------------+----------------+------------+------------+
| Dr. Stephen | | 2,484,849 | Options | 1,156,830 | 14.11.2012 | $0.210 |
| McMurray | | | | | | |
+---------------+----------+----------------+------------+----------------+------------+------------+
| | | | Options | 1,000,000 | 14.09.2020 | $0.234 |
+---------------+----------+----------------+------------+----------------+------------+------------+
| Total | | 4,641,679 | | | | |
| interests | | | | | | |
+---------------+----------+----------------+------------+----------------+------------+------------+
| | | | | | | |
+---------------+----------+----------------+------------+----------------+------------+------------+
| Dr. Andrew | | 1,190,037 | Warrants | 31,681,652 | 30.3.2016 | $0.071 |
| Pearlman (and | | | | | | |
| family) | | | | | | |
+---------------+----------+----------------+------------+----------------+------------+------------+
| | | | Warrants | 1,257,285 | 30.3.2016 | $0.0000047 |
| | | | | | | |
+---------------+----------+----------------+------------+----------------+------------+------------+
| | | | Options | 6,398,216 | 30.3.2016 | $0.071 |
+---------------+----------+----------------+------------+----------------+------------+------------+
| | | | Options | 3,199,076 | 14.11.2012 | $0.210 |
+---------------+----------+----------------+------------+----------------+------------+------------+
| ADP Holdings | | 60,174 | | | | |
+---------------+----------+----------------+------------+----------------+------------+------------+
| Total | | 43,786,440 | | | | |
| interests | | | | | | |
+---------------+----------+----------------+------------+----------------+------------+------------+
Following all of the above transactions the significant shareholders of the
Company are:
+------------------+------------+---------+------------+-------------+
| Name | Number | % of | Total | Total |
| | of | Shares | number of | interests |
| | Common | in | total | as % of |
| | Shares | issue | shares | fully |
| | | | interested | diluted |
| | | | in | share |
| | | | | capital2 |
+------------------+------------+---------+------------+-------------+
| The Executors of | 18,609,725 | 10.5 | 22,372,548 | 6.9 |
| Lord Leonard | | | | |
| Steinberg's | | | | |
| estate | | | | |
+------------------+------------+---------+------------+-------------+
| Joel Kanter | 32,924,496 | 18.6 | 39,238,211 | 12.2 |
| (director) and | | | | |
| related | | | | |
| interests | | | | |
+------------------+------------+---------+------------+-------------+
| CIBC Trust | 7,605,985 | 4.3 | 11,115,137 | 3.4 |
| Company | | | | |
| (Bahamas) Ltd.3 | | | | |
+------------------+------------+---------+------------+-------------+
| Alta California | 7,637,981 | 4.3 | 7,637,981 | 2.4 |
| Partners III | | | | |
| L.P. | | | | |
+------------------+------------+---------+------------+-------------+
| Platinum Montaur | 7,190,208 | 4.1 | 10,397,392 | 3.2 |
| Life Sciences I, | | | | |
| LLC | | | | |
+------------------+------------+---------+------------+-------------+
| Vision | 7,094,851 | 4.0 | 16,827,979 | 5.2 |
| Opportunity | | | | |
| Master Fund Ltd. | | | | |
+------------------+------------+---------+------------+-------------+
| UK Private | 7,000,000 | 4.0 | 7,000,000 | 2.2 |
| Healthcare | | | | |
| Limited | | | | |
+------------------+------------+---------+------------+-------------+
| Chicago | 20,933,116 | 11.8 | 20,933,116 | 6.5 |
| Investments Inc. | | | | |
| 3 | | | | |
+------------------+------------+---------+------------+-------------+
| Koor Corporate | 5,393,821 | 3.1 | 5,393,821 | 1.7 |
| Venture Capital, | | | | |
| L.P. | | | | |
+------------------+------------+---------+------------+-------------+
| Eugene Bauer | 2,674,560 | 1.5 | 9,755,091 | 3.0 |
| (director) | | | | |
+------------------+------------+---------+------------+-------------+
| Gary Brukardt | 1,106,416 | 0.6 | 6,758,403 | 2.1 |
| (director) | | | | |
+------------------+------------+---------+------------+-------------+
| Kanter Family | 2,497,233 | 1.4 | 2,593,646 | 0.8 |
| Foundation 3 | | | | |
+------------------+------------+---------+------------+-------------+
| Stephen D. | 2,484,849 | 1.4 | 4,641,679 | 1.4 |
| McMurray | | | | |
| (director) | | | | |
+------------------+------------+---------+------------+-------------+
| Andrew Pearlman | 1,238,185 | 0.7 | 43,786,440 | 13.6 |
| (director)1 | | | | |
+------------------+------------+---------+------------+-------------+
| Alastair Clemow | Nil | Nil | 450,000 | 0.1 |
| (director) | | | | |
+------------------+------------+---------+------------+-------------+
Notes:
1 - Including interests in 3,316 Common Shares held by family members and
60,174 ADP Holdings LLC, a company in which Andrew Pearlman is interested.
2 - Fully diluted share capital is based on the 177,096,014 Common Shares in
issue, Options over 46,025,124 Common Shares, Warrants over 93,125,317 Common
Shares and the Company's estimate of 6,412,500 Common Shares that may be issued
on conversion of the outstanding debentures as at the date of this announcement
being 322,658,955 Common Shares.
3 - Included within the total interests of Joel Kanter (being 32,924,496 Common
Shares and interests in 39,238,211 Common Shares).
+-----------+-+--------+-------+-----------+--------+----------+
| | | | | | | |
+-----------+-+--------+-------+-----------+--------+----------+
For further information, contact:
+--------------------------------------+------------------------+
| Medgenics, Inc. | Phone: +972 4 902 8900 |
| Dr. Andrew L. Pearlman | |
| | |
+--------------------------------------+------------------------+
| Religare Capital Markets (Nominated | Phone: +44 207 444 |
| Adviser) | 0800 |
| James Pinner | |
| Derek Crowhurst | |
| | |
+--------------------------------------+------------------------+
| SVS Securities plc (Joint Broker) | Phone: +44 207 638 |
| Ian Callaway | 5600 |
| | |
+--------------------------------------+------------------------+
| Nomura Code Securities PLC (Joint | Phone: +44 207 776 |
| Broker) | 1219 |
| Jon Senior | |
| | |
+--------------------------------------+------------------------+
| De Facto Communications | Phone: +44 20 7861 |
| Mike Wort | 3838 |
| Anna Dunphy | |
| | |
+--------------------------------------+------------------------+
| Grayling (Investment Relations - US) | Phone: +1 646 284 |
| Leslie Wolf-Creutzfeldt | 9472 |
+--------------------------------------+------------------------+
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.
For more information please visit: www.medgenics.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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