Medigene AG reports Financial Results and Business Update for Q1 2024 - Seite 2

Subsequent to the quarter, on April 23, 2024, the Company announced the launch of a capital raise with subscription rights as part of the Company’s near and medium-term financing strategy. Medigene intends to use the gross proceeds of up to approximately EUR 5.9 million to fund its operating activities and to progress work for the clinical development of the Company’s lead program, MDG1015.

Members of Medigene AG’s management and Supervisory Board will subscribe for new shares as part of the rights offering and the private placement. Within the framework of a backstop agreement, an investor has declared his commitment to Medigene to acquire unsubscribed new shares in an amount of up to EUR 3 million.

The parameters of the capital increase are as follows: The Company plans to increase its share capital from EUR 24,562,658.00 by up to EUR 4,912,531.00 to up to EUR 29,475,189.00 by issuing up to 4,912,531 new no-par value registered shares with a pro rata amount of the share capital of EUR 1.00 and with full dividend rights from January 1, 2023.

The new shares will be offered to all shareholders for subscription. Over-subscription is permitted. Any unsubscribed new shares will be offered for purchase in a private placement to new investors within the European Union. The subscription ratio is set at 5:1, i.e. five (5) old shares entitle the subscription to one (1) new share. Organized trading of subscription rights is arranged. The subscription price for both the exercise of subscription rights and the private placement is EUR 1.20. The subscription period for the new shares commenced on April 24, 2024 and ends on May 7, 2024 at 24:00 hours (CEST). The new shares are to be admitted to trading on the Frankfurt Stock Exchange (Prime Standard) after they are issued. The capital increase will not require a prospectus. Details of the rights offering are published in the Federal Gazette also are available on the Company’s website https://medigene.com/investors-media/stock-information/capital-measure ...

Scientific and clinical development

In February 2024, Medigene announced the initial clinical indications for the first-in-human Phase 1 clinical trial for its lead program MDG1015, selecting gastric cancer, ovarian cancer, myxoid/round cell liposarcoma and synovial sarcoma as the target cancers to be treated. Following recent positive EU and US preliminary regulatory interactions, the program remains on track for an IND/CTA approval in the second half of 2024. Subject to financing, the Company expects to initiate a Phase 1 trial for MDG1015 by the end of 2024.