Date: 2015-10-12
Type of information: Private placement
Company: Medgenics (USA - Israel)
Investors:
Amount: $46 million
Funding type: private placement
Planned used: Medgenics intends to use net proceeds from this offering for product development activities, including - the development of technologies acquired in the previously announced acquisition of neuroFix, - patent maintenance fees and intellectual property support, - licensing and research collaborations and - general corporate purposes and working capital, which may include the acquisitions or licensing of complementary technologies, products or businesses and making certain payments in connection with the acquisition of neuroFix, including an expected $2.8 million payment to satisfy a specific corporate milestone payment to the former stockholders of neuroFix.
Others: * On October 12, 2015, Medgenics announced the completion of an underwritten public offering of 7,078,250 shares of its common stock, including 923,250 shares sold pursuant to the full exercise of an option previously granted to the underwriters to purchase additional shares of common stock. All of the shares were offered by Medgenics at a price to the public of $6.50 per share. The gross proceeds from this offering to Medgenics were approximately $46 million, before deducting underwriting discounts and commissions and offering expenses payable by Medgenics. * On October 1, 2015, Medgenics announced the pricing of 6,155,000 shares of its common stock in a previously announced underwritten public offering at a price to the public of $6.50 per share. In connection with the offering, Medgenics has also granted the underwriters a 30-day option to purchase up to an additional 923,250 shares of its common stock. Gross proceeds to Medgenics from the sale of shares are expected to be approximately $40 million, excluding any exercise of the underwriters\' option to purchase additional shares of common stock. If the underwriters\' option is exercised in full, gross proceeds will be approximately $46 million. The offering is expected to close on or about October 6, 2015 subject to customary closing conditions. * On September 30, 2015, Medgenics announced that it intends to offer and sell shares of its common stock in an underwritten public offering. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering. As part of this proposed offering, Medgenics intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of common stock offered to the public. Piper Jaffray & Co. is acting as sole book-running manager for the proposed offering. JMP Securities LLC is acting as lead manager and Needham & Company, LLC is acting as co-manager. All of the shares to be sold in the proposed offering are being sold by Medgenics. A shelf registration statement relating to the shares of common stock described above has been previously filed with and declared effective by the U.S. Securities and Exchange Commission (SEC). This press release does not constitute an offer to sell, or the solicitation of an offer to buy, these securities, nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale is not permitted. This offering is being made by means of a prospectus supplement and related prospectus.
Therapeutic area: Rare diseases
