MDxHealth SA (Euronext Brussels: MDXH) (the “Company” or “MDxHealth“), a commercial-stage innovative molecular diagnostics company, announces the successful pricing of its capital increase with the offering of new ordinary shares. The Company raised EUR 9.0 million (USD 9.8 million)(1) in gross proceeds by means of a private placement of 10,589,236 new shares at an issue price of EUR 0.85 per share through an accelerated bookbuilding (the “Capital Increase“).
Michael McGarrity, CEO of MDxHealth, said: “We are pleased to have secured additional funding from a mix of new and existing investors, demonstrating confidence in our ability to realize the Company’s growth potential by delivering on several clearly identified value drivers. We firmly believe that clear strategic focus, continued disciplined operating expense management and experience-based execution in these areas of focus will drive future revenue growth.”
The Capital Increase is in addition to a loan agreement that was entered into with Kreos Capital for an available amount equal to the gross amount raised by the Capital Increase, but with a maximum of EUR 9 million, that can be drawn until 1 November 2019 (the “Debt Financing“).
The net proceeds of the Capital Increase and Debt Financing will be used mainly to support the Company’s stated strategy to grow the business by expanding the adoption of the Company’s commercial test menu with urologists and payors, as well as for general corporate purposes.
The payment and delivery of the new shares to be issued in the Capital Increase is expected to take place on 1 October 2019.
The new shares to be issued will have the same rights and benefits as, and rank pari passu in all respects with, the existing and outstanding shares of MDxHealth at the moment of their issuance and will be entitled to distributions in respect of which the relevant record date or due date falls on or after the date of issue of the new shares.
As a result of the issuance of new shares, the Company’s share capital will increase from EUR 47,813,068.45 to EUR 56,260,102.01 and its issued and outstanding shares will increase from 59,939,289 to 70,528,525 ordinary shares, representing an increase of the share capital and number of shares of 17.7%.
In the context of the Capital Increase, MDxHealth has agreed to a market customary 180 day lock-up period, subject to common exemptions.
Kempen acted as Sole Bookrunner for the Capital Increase.
(1) Based on the conversion rate of EUR 1.00 = USD 1.0938 as at 26 September 2019.