- Increase in share capital of 577,397 shares with an issue price of EUR 29.90 per share
- Cash injection to be used primarily for further development of proprietary biosimilar Projects
Munich – Formycon AG (ISIN: DE000A1EWVY8/ WKN: A1EWVY) announced on March 22, 2019 the private placement of a cash capital increase from the strategic Swiss investor M&H Equity AG. With the resolution by the Management Board and Supervisory Board, the company’s share capital of currently EUR 9,422,603.00 will be increased to a total of EUR 10,000,000.00 by partially utilizing approved capital of EUR 577,397.00 to issue 577,397 new bearer shares with a computational proportion of the share capital of EUR 1.00 each in return for a cash investment.
The inward flow of funds amounts to EUR 17,264,170.30 in total and corresponds to an issue price per share of EUR 29.90. The Swiss company M&H Equity AG from Heerbrugg in the Canton of St. Gallen is a strategic investor with a long-term investment horizon. Oliver Fiechter, founder and Managing Partner of M&H Equity AG, commented on his involvement with Formycon as follows: “I’m very much looking forward to working with Formycon, and I see above-average growth potential in the company. Both the management and the business model impressed me, as did the fact that biosimilars will become increasing popular due to increasing cost pressure in global healthcare systems. When we are choosing our investments, the concept of sustainability most of all plays a very important role. The fact that Formycon AG, with its biosimilars, is keen to make access to important medicines easier for as many patients around the world as possible was an important investment criterion for us.”
The funds raised by the capital increase are primarily to be used to expand the pipeline and develop the company’s own biosimilar projects. “With Oliver Fiechter and M&H Equity AG, we have brought on board a strong strategic partner that fits very well with our company and from the support of which we will most certainly be able to benefit. We first and foremost want to advance the development of our projects with the acquired capital and, in so doing, further increase the value of the pipeline”, says Dr. Nicolas Combé, CFO of Formycon AG.
About M&H Equity AG:
The Mountains & Hills Investment Group is an international investment manager and advisor focusing on private markets and selected public holdings. The Group has its own investment approach that combines investments in value-driven companies with shareholdings in innovative technology firms. Within its group, Mountains & Hills combines its own investment fund, a VC company and a vehicle for direct investments in the healthcare market. Through its investments, Mountains & Hills creates added value by helping companies to implement the opportunities made possible by digital technologies in their day-to-day business. This allows them to achieve above-average value growth for their investors.