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SpineGuard Enters Standby Equity Facility (PACEO) with Societe Generale

January 30, 2014

SpineGuard , a company that designs, develops and markets disposable medical devices for spine surgery, announced that it has entered into a Standby Equity Facility (PACEO) with Societe Generale as authorized by the Shareholders' Meeting of March 21, 2013 . According to a release, it remains at the sole discretion of SpineGuard to determine the timing of the funding. "The Board of SpineGuard approved the set-up of a Standby Equity Facility. With this flexible and guaranteed solution, we are strengthening the capacity of our development, while limiting dilution of our shareholders," said Pierre Jerome , CEO and co- founder of SpineGuard . "This solution secures our financial resources over time and does not reflect an immediate need of cash considering SpineGuard's available cash & treasury of EUR 6.5M as of December 31 , 2013." Under the terms of the agreement Societe Generale has committed to purchase newly created shares at any time during the 36-month commitment period, within the global limit of 400,000 shares, being 9.3 percent of the 4,311,112 shares currently outstanding. Should the entire standby equity facility be drawn down and resulting in the issuance of 400,000 new shares, a shareholder who currently owns 1 percent of the company's share capital would experience a reduction of his / her ownership to 0.92 percent1. For each tranche, the price to be paid equals the volume weighted average share price of the three trading days preceding the effective date of purchase with a discount capped at 8 percent dependent on the size of the drawing. This discount allows Societe Generale , who is not positioned as a long-term shareholder in the Company, to purchase the shares independently of market volatility. SpineGuard has no minimum drawdown obligation, and will use the facility at its sole discretion if market conditions are favorable and in the best interests of both the Company and its shareholders. The PACEO is an equity financing solution that was designed by Societe Generale . More Information: ((Comments on this story may be sent to ))

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Source: Health & Beauty Close - Up

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