MediWound Ltd., an Israeli biopharmaceutical company focused on next-generation biotherapeutic solutions for tissue repair and regeneration, raised $30 million from the issuance of new shares. Mediwound is traded on the NASDAQ. The issue comes after the company’s shares fell by over 50% over the past year due to the ongoing financial crisis and global market drops.
The company entered into a definitive securities purchase agreement with several institutional and accredited investors for the sale and purchase of 7,575,513 shares of the Mediwound’s ordinary shares, par value NIS 0.01 at a purchase price of $1.75 per share, in a registered direct offering. Additionally pursuant to the Registered Direct Securities Purchase Agreement, the Company has also agreed to issue to these investors unregistered warrants (the “Warrants”) to purchase up to 7,575,513 Ordinary Shares in a concurrent private placement.
The Warrants will have an exercise price of $1.925 per Ordinary Share and will become exercisable upon the Company’s receipt of shareholder approval to increase the number of its authorized Ordinary Shares, pursuant to the Company’s Amended and Restated Articles of Association, and will expire four years thereafter.
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MediWound is a biopharmaceutical company that develops, manufactures, and commercializes novel, cost effective, bio-therapeutic solutions for tissue repair and regeneration. Our strategy leverages our enzymatic technology platform, focused on next-generation bioactive therapies for burn care, wound care and tissue repair.
NexoBrid, its commercial orphan biological product for non-surgical eschar removal of deep-partial and full-thickness thermal burns, is a bromelain-based biological product containing a sterile mixture of proteolytic enzymes that selectively removes burn eschar within four hours without harming surrounding viable tissue. NexoBrid is currently marketed in the European Union and other international markets and is at registration-stage with the Food and Drug Administration (FDA). NexoBrid is supported by the U.S. Biomedical Advanced Research and Development Authority (BARDA).
The gross proceeds to the Company from the Offerings are expected to be approximately $30.5 million, before deducting placement agent fees and other offering expenses payable by the Company. The Company intends to use the net proceeds from the Offerings primarily for the development of EscharEx®, a scale up of its facilities, and for general corporate purposes. The Company may also use a portion of the net proceeds to in-license, invest in or acquire businesses, technologies, products or assets that it believes are complementary to its own, although it has no current plans, commitments or agreements with respect to any acquisitions or in-licenses at this time.
Ofer Gonen, CEO of MediWound, said, “We are making progress towards achieving our strategic goals, and we now have the cash to support all the company’s channels of activity: we are expanding our production capacity to support sales of NexoBrid (the burns product) around the world, and we shall be able to finance the continued development of EscharEX (the wounds treatment) independently.”