SYGNIS AG plans to issue new shares to finance further growth and commercialization of proprietary product portfolio
NOT FOR DISTRIBUTION, PUBLICATION, OR TRANSMISSION IN USA, CANADA, JAPAN AND AUSTRALIA
- Cash capital increase by way of a rights offering of up to 3,855,694 new shares and targeted gross proceeds of EUR 6.7 million
- Subscription price per new share is EUR 1.90
- Proceeds used to progress the product portfolio, commercialization of the product pipeline and expansion of customer base worldwide and other purposes
- Major shareholder Genetrix S.L., Spain, committed to contribute EUR 600,000 in kind by swapping its shareholder loan into equity
Madrid, Spain and Heidelberg, Germany, November 17, 2015 – SYGNIS AG (Frankfurt: LIO1; ISIN: DE000A1RFM03; Prime Standard) today resolved, with the approval of the Supervisory Board, to increase the Company’s share capital by up to EUR 3.9 million by issuing up to 3,855,694 new shares in order to finance the expansion of its commercialization activities, especially to the US, among other things. To this end, the Company is planning a cash capital increase by way of a rights offering for existing shareholders. A total of up to approx. 3.9 million new shares will be offered for subscription. An oversubscription is possible. Any new shares not subscribed for will be offered for sale to selected qualified investors in private placements. The Management Board and Supervisory Board of SYGNIS AG today resolved that a tranche of these new shares, valued at approx. EUR 600,000, will be issued as a capital increase against contributions in kind in order to swap a substantial portion of an existing loan from major shareholder Genetrix S.L., Spain, into equity.
“In the first nine months of 2015 we have been reporting significant achievements. SYGNIS has introduced five products for DNA sequencing and amplification in 2015 and will introduce further products from our pipeline in 2016. We have started commercialization this year and have been able to achieve significant revenue growth for the third consecutive quarter. SYGNIS has been investing in the transition of the Company towards a product company. We now need to finance the next steps of our corporate development and commercialization strategy, accelerate sales in Europe and build our presence in the US, the largest biotech market worldwide”, Pilar de la Huerta, CEO and CFO of SYGNIS commented. “With the proceeds from the capital increase we will progress our product pipeline, launch and commercialize our growing portfolio of kits and expand our global distribution and customer base, particularly in the US.”
Capital increase by way of a rights offering and against contributions in kind:
SYGNIS AG intends to increase its share capital from EUR 13,494,934.00 composed of 13,494,934 no-par value bearer shares, to up to EUR 17,350,628.00, composed of up to 17,350,628 shares, while partially utilising authorized capital.
With the rights issue, the share capital of the Company will be increased by up to EUR 3,855,694.00 in return for cash contributions and contributions in kind by up to 3,855,694 new no-par value bearer shares, each with a notional par value of EUR 1.00. The new shares (Offer Shares) will be offered to existing shareholders through indirect pre-emptive rights by Small & Mid Cap Investmentbank AG (Munich, Germany). The subscription ratio is 7:2, thus seven existing shares entitle the holder to subscribe for two new shares. An oversubscription is possible. There shall be no organized trading in subscription rights. The subscription price per new share is EUR 1.90. Any new shares not subscribed in the offering will be offered for sale in private placements to selected qualified investors after the end of the subscription period. The Company aims to generate gross proceeds of EUR6.7 million from the cash capital increase, not including the EUR0.6million loan contribution. Generated proceeds will be used to progress the product portfolio, for further commercialization of the existing products, and to grow and expand the customer base worldwide, particularly in the US.
For further details on the rights issue, please see the subscription offer provisionally planned to be published in the electronic Federal Gazette on November 20, 2015 and on the website of SYGNIS AG (www.sygnis.com). The securities prospectus will be published on www.sygnis.com in the section “investors”.
For further information please contact:
Pilar de la Huerta
Phone: +34 91 192 36 50
MC Services AG
Phone: +49 89 210228 30