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

July 22, 2014

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Expands into the U.S. Market 22.07.2014 / 13:30 --------------------------------------------------------------------- NOT FOR PUBLICATION OR DISTRIBUTION IN THE UNITED STATES OF AMERICA MagForce Expands into the U.S. Market Successful 1st closing of a growth financing round for Magforce USA, Inc.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 ManagementBerlin, 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 HenneckeMC 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


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