MagForce AG / MagForce Shareholders' Meeting resolves to increase capital by up to ?33.5 million . Processed and transmitted by Thomson Reuters ONE. The issuer is solely responsible for the content of this announcement.

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  • Capital increase against cash and noncash contributions by granting preemptive rights of up to a total of ?33.5 million approved at Shareholders' Meeting
  • Debt reduction and debt-to-equity swap planned 

Berlin, Germany, January 25, 2013 - MagForce AG (Frankfurt, XETRA: MF6), a leading medical technology company in the field of nanomedicine in oncology, announced today that the Company's Shareholders' Meeting, which took place earlier in the day, approved all agenda items with a majority of votes.

With immediate effect, the Company's share capital can therefore be increased by up to ?18.6 million against cash and noncash contributions, granting preemptive rights to shareholders. The new shares with a notional value of ?1.00 will be issued for ?1.80. The Company was also granted the right to issue new shares at the issue price of ?1.80 per share to certain creditors against noncash contributions to the extent that shareholders' preemptive rights are disapplied for shares counting as fractions or that preemptive rights have not been exercised following the expiration of the subscription period for all shareholders, but only up to a maximum of 8,933,643 new shares. The preemptive rights will not be traded on the stock exchange.

In the short to medium term, MagForce will use part of these cash funds to finance the post-marketing glioblastoma study. As well as financing its operating business, the Company will repay loans in the amount of ?16.1 million to its primary creditors, insofar as this amount is not converted to equity as part of a debt-to-equity swap.

"The capital measures approved today will allow the Company to restructure its balance sheet by eliminating ?16.1 million in debt as part of its strategic financing activities while also raising sufficient cash funds for upcoming tasks," explained Christian von Volkmann, CFO and Co-CEO. "In view of the Company's long-term corporate planning and the establishment of its NanoTherm® therapy on the market, the Management and Supervisory Board felt that these measures were vital to the Company's future and were very pleased with the approval of these measures. We are confident that MagForce's business model with NanoTherm® therapy will be a profitable one."

About MagForce AG

MagForce AG is a leading medical technology company in the field of nanomedicine in oncology. The Company's proprietary, NanoTherm® therapy, enables the targeted treatment of solid tumors through the intratumoral generation of heat via activation of magnetic nanoparticles. NanoTherm®, NanoPlan®, and NanoActivator(TM) are components of the therapy and have received EU-wide regulatory approval as medical devices for the treatment of brain tumors. MagForce, NanoTherm®, NanoPlan®, and NanoActivator(TM)are trademarks of MagForce AG in select countries. For more information, please visit www.magforce.com:
http://www.magforce.com/.

Disclaimer

This release may contain forward-looking statements and information which may be identified by formulations using terms such as "expects", "aims", "anticipates", "intends", "plans", "believes", "seeks", "estimates" or "will". Such forward-looking statements are based on our current expectations and certain assumptions, which may be subject to a variety of risks and uncertainties. The results actually achieved by MagForce AG may substantially differ from these forward-looking statements. MagForce AG assumes no obligation to update these forward-looking statements or to correct them in case of developments, which differ from those, anticipated.

Contact:
Anne Hennecke
MC Services AG

T +49 89 210228-18
F +49 89 210228-88
M +49 151 12 555 759

Email: anne.hennecke@mc-services.eu

MagForce_Press Release_Jan 25, 2013:
http://hugin.info/143761/R/1673313/544703.pdf


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Source: MagForce AG via Thomson Reuters ONE
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