Issue of equity to raise £13 million
London UK, 13 January 2010 – Lombard Medical Technologies PLC (AIM: LMT), the specialist medical device company, today announced that it proposes to raise £13 million (before expenses of £1.2 million) through a placing arranged on the Company’s behalf by Evolution Securities Limited and Eden Financial Limited and a subscription. In addition, qualifying shareholders and employees are being invited to participate in the fundraising via a subscription for Offer Shares that may raise up to an additional €2.2 million.
The funds raised will be applied towards:
• expansion of the Company’s European sales and marketing infrastructure;
• submission of the remaining PMA modular filings and completion of the clinical trial in the US to gain FDA regulatory approval for Aorfix™;
• development of a next generation delivery system for Aorfix™; and
• the improvement of operational efficiency.
The fundraising is subject to the approval of shareholders at a General Meeting to be held on 1 February 2010. A circular convening the General Meeting will be posted to shareholders, and will be available to view on the Company’s website www.lombardmedical.com.
Following the appointment of John Rush as Chief Executive Officer in October 2009, the Company has reviewed its commercialisation strategy, concluding that shareholder value would be maximised by focusing on increasing market share in the five main European markets and obtaining FDA approval for Aorfix™ in the US, before seeking an acquirer or commercial partner.
Commenting on the fundraising, Simon Neathercoat, Chairman of Lombard Medical, said:
“Lombard Medical has made major progress during 2009. As well as receiving European approval for Aorfix™ in the treatment of high-angle-neck aneurysms, we are close to completion of enrolment into the US trial programme. The growing adoption of Aorfix™ in Europe demonstrates the product’s versatility and its unique ability to tackle those patients with the most difficult to treat aortic aneurysms. We believe the success of this fundraising will enable us to capture market share in Europe, complete the regulatory process in the important US market and ensure that we gain maximum returns for our shareholders.”
Enquiries:
Lombard Medical Technologies PLC Tel: +44 (0) 1235 750 800
Simon Neathercoat, Non-executive Chairman
John Barry Rush, Chief Executive Officer
Tim Hall, Finance Director
Evolution Securities Limited (Nominated Adviser and Broker, and Joint Broker to the Placing)
Tel: +44 (0) 20 7071 4300
Barry Saint
Tim Redfern
Esther Lee
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 4.5 million people are living with AAA in the developed world and each year 600,000 new cases are diagnosed. The market for endovascular stent grafts for the treatment of AAA is currently worth approximately $900 million and is expected to grow to around $1.6 billion by 2015. Aorfix™ has CE Mark approval in the EU and is currently being commercialised in the EU, with a pivotal clinical trial ongoing in the USA.
The Company is headquartered in Oxfordshire, with operations in Prestwick, Ayrshire and Boston, USA.
Further background on the Company can be found at www.lombardmedical.com.