£1.6 million fundraising
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Lombard Medical Technologies PLC
(“Lombard” or “Company”)
London, UK, 26 September 2008 – Lombard Medical Technologies PLC (AIM: LMT), the specialist medical device company, announces a fundraising for the Company raising approximately £1.6 million (before expenses of approximately £0.2 million).
Highlights
• Fundraising by way of a Placing and a Subscription of Convertible Loan Notes to raise net proceeds (after expenses) of approximately £1.4 million. The Placing has been underwritten by Nomura Code Securities Limited.
• The Company is offering qualifying shareholders and employees the opportunity to participate in the fundraising by offering them the chance to subscribe for Convertible Loan Notes on equivalent terms and conditions to the Placing and the Subscription up to the value of €2.5 million (approximately £2.0 million)
• Certain Directors have agreed to take up a total of £75,000 of Convertible Loan Notes
• A significant Middle Eastern bank has expressed an interest in investing through equity up to $15 million in Lombard
• The proceeds allow the Company to complete its ongoing long-term financing discussions as well as progress the following key near-term objectives:
o Complete recruitment of the Aorfix™ US clinical trial
o File to widen the European label claim for Aorfix™ to include the treatment of high-angle-neck aneurysms (up to 90°)
o Secure FDA approval of EndoRefix™ in late 2008 or early 2009
Investors in Lombard should be aware that the proceeds from the Placing and Subscription together with the Company’s existing cash resources will allow it to trade into January 2009. If the Board is unable to secure additional sources of funding, the Company will have insufficient resources to trade beyond that date.
The Placing was marketed by Nomura Code Securities Limited and the Subscription by the Company’s exclusive US agent Summer Street Research Partners.
Simon Neathercoat, Lombard Medical’s Non-Executive Chairman, said:
“We are very pleased that the investment community has continued to show its support for the Company, particularly at a time when the capital markets are under such pressure. These funds provide us with the breathing space we require, whilst talks continue with a number of parties to secure the long-term funding requirements of the Company.”
Enquiries:
Lombard Medical Technologies PLC Tel: +44 (0) 1235 750 800
Simon Neathercoat, Non-Executive Chairman
Brian Howlett, Chief Executive Officer
Tim Hall, Finance Director
Financial Dynamics Tel: +44 (0) 20 7831 3113
David Yates / Susan Quigley
Nomura Code Securities Limited Tel: +44 (0) 20 7776 1200
Juliet Thompson / Richard Potts
Notes to editors
About Lombard Medical
Lombard Medical Technologies PLC is a medical devices group developing stent grafts and other medical products for use in the treatment of vascular disease. The Company’s lead product, Aorfix™, is an endovascular stent graft for the treatment of abdominal aortic aneurysms (AAAs), a balloon-like enlargement of the aorta which, if untreated, may rupture and cause death. Approximately 1.7 million people have AAAs in the US where it is the 13th largest cause of death. The market for endovascular stent grafts for the treatment of AAA is currently worth over $600 million and is expected to grow to around a $1 billion by 2010. Aorfix™ is currently being commercialised in the EU, with a pivotal clinical trial ongoing in the USA.
The Company’s Polymer Coatings Division has developed a novel hydrophilic surface treatment to reduce friction on catheters called GlideMax™, which is available for licensing, and is using its polymer coating technology in a number of research collaborations developing novel products for the $5 billion drug-eluting stent market.
The Company headquartered in Oxfordshire, with operations in Yorkshire, Ayrshire and Boston, USA employs over 100 people.
Please click on the link for the full Placing Information Placing Announcement Sept 08.pdf