DGAP-News: MagForce AG: MagForce Expands into the U.S. Market


DGAP-News: MagForce AG / Key word(s): Private Equity
MagForce AG: MagForce Expands into the U.S. Market

22.07.2014 / 13:30

---------------------------------------------------------------------

NOT FOR PUBLICATION OR DISTRIBUTION IN THE UNITED STATES OF AMERICA

MagForce Expands into the U.S. Market

Successful 1st closing of a growth financing round for Magforce USA, Inc.
under the lead of Mithril Capital Management

Berlin, Germany, July 22, 2014 - MagForce AG (Frankfurt, Entry Standard,
XETRA: MF6, ISIN: DE000A0HGQF5), a leading medical device company in the
field of nanomedicine focused on oncology, today announced that it has
successfully established MagForce USA, Inc., together with the grant of a
license for the development and commercialization of NanoTherm(TM) Therapy
especially for the treatment of brain and prostate cancers. The subsidiary
MagForce USA, Inc. will be responsible for developing the North American
market (US, Mexico and Canada) for MagForce's technology and products. In
the U.S. alone, over USD 10 billion are spent yearly treating prostate
cancer.

MagForce aims at developing its technology to offer a new focal treatment
for Intermediate Stage Prostate Cancer with precise ablation of the cancer
lesion while sparing normal tissue. Based on European experience for brain
and early prostate cancer trials, the side effects should be minimal. As
previously announced, MagForce USA, Inc. has had a positive pre-submission
meeting with the FDA.

In order to fund MagForce USA, Inc.'s development plans and to add further
value to the enterprise in the form of strategic US shareholders, MagForce
AG is allowing a limited number of selected accredited investors, including
the management, to acquire a minority stake in MagForce USA, Inc.

MagForce USA, Inc. has already issued in a first closing 1,500,000 common
shares at USD 10.00 per share, for aggregate gross proceeds of USD 15
million, at a pre-money valuation of USD 50 million. Furthermore, strategic
investors subscribed warrants to purchase an additional 1,500,000 shares at
the same valuation. Selected prospective investors who have already
received the Company's Private Placement Memorandum are allowed to
subscribe additional minority shares until end of July 2014 (final
closing).

The growth financing round was led by Mithril Capital Management, a growth
fund for transformative and durable technology companies founded by Ajay
Royan and Peter Thiel.

Ben J. Lipps, Chairman and CEO of MagForce AG, commented: "I am very
pleased with the development of MagForce - both in Europe and in the U.S.
With our EU-wide regulatory approval, we plan to initiate commercial
treatments for brain cancer late this year in Germany. The U.S., in the
long term, has the largest market potential for prostate cancer treatment.
Given these very positive developments over the last 10 months, I am
confident we will achieve, if not exceed, our future financial targets for
both Europe and North America. In Mithril, we have found the right
collaborator to support our expansion plans. Ajay Royan and Peter Thiel
have proven themselves numerous times to be valuable partners in helping
companies unlock long-term growth."

Ajay Royan, co-founder and managing general partner of Mithril, said:
"Conventional treatments for prostate cancer have significant side effects
and other limitations, while patients with glioblastoma currently have few
good options at all. That's why MagForce's innovative approach to solid
tumors is very promising and potientially important."

This announcement does not contain or constitute or form part of, and
should not be construed as, an offer or invitation to sell, or the
solicitation of an offer to buy or subscribe for, any securities to any
person in the United States or in any jurisdiction to whom or in which such
offer or solicitation is unlawful. The securities referred to herein have
not been and will not be registered under the U.S. Securities Act of 1933,
as amended (the "Securities Act") or the laws of any state within the
United States or under the applicable securities laws of any other
jurisdiction, and may not be offered or sold in the United States, unless
registered under the Securities Act or offered and sold in a transaction
exempt from, or not subject to, the registration requirements of the
Securities Act. The information contained in this announcement is for
background purposes and appears as a matter of record only, inasmuch as the
offering described herein has been terminated except with respect to a
limited number of accredited investors who have previously received the
Company's Confidential Private Placement Memorandum.

About MagForce AG and MagForce USA, Inc.

MagForce AG, listed in the entry standard of the Frankfurt Stock Exchange
(MF6, ISIN: DE000A0HGQF5), together with its subsidiary MagForce USA, Inc.
is a leading medical device company in the field of nanomedicine focused on
oncology. The Group's proprietary NanoTherm(TM) therapy enables the
targeted treatment of solid tumors through the intratumoral generation of
heat via activation of superparamagnetic nanoparticles. NanoTherm(TM),
NanoPlan(R), and NanoActivator(R) 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 are
trademarks of MagForce AG in selected countries. For more information,
please visit: www.magforce.com.

About Mithril Capital Management

Mithril is a global investment firm that provides capital to leading growth
companies by partnering with teams who use technology to build
transformative and durable businesses, often in industries long overdue for
change. Each of these businesses is unique, but all face common challenges
to unlocking long-term growth. Mithril helps navigate these critical
inflection points by investing in size and with conviction. For more
information, please visit: www.mithril.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 +49 211 529252-22
F +49 211 529252-29
 
Email: anne.hennecke@mc-services.eu


End of Corporate News

---------------------------------------------------------------------

22.07.2014 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---------------------------------------------------------------------


Language:    English                                                     
Company:     MagForce AG                                                 
             Max-Planck-Straße 3                                         
             12489 Berlin                                                
             Germany                                                     
Phone:       +49 (0)30 308 380 0                                         
Fax:         +49 (0)30 308 380 99                                        
E-mail:      info@magforce.com                                           
Internet:    www.magforce.com                                            
ISIN:        DE000A0HGQF5                                                
WKN:         A0HGQF                                                      
Listed:      Freiverkehr in Berlin, Düsseldorf, Stuttgart; Frankfurt in  
             Open Market (Entry Standard)                                
 
 
End of News    DGAP News-Service  
---------------------------------------------------------------------  
278822 22.07.2014