Lombard Medical Announces £27.5 million Financing

Lombard Medical Technologies PLC (AIM: LMT), the specialist medical devices company, today announced that it proposes to raise up to £25.3 million (before expenses) through a placing and subscription arranged on the Company’s behalf by Evolution Securities Limited and Eden Financial Limited. As part of the subscription, Abingworth LLP and MVM Life Science Partners LLP, both specialist healthcare investors, have committed to invest, in aggregate, up to £13.0 million. The placing and subscription will be issued and admitted to trading in two tranches. In addition, qualifying shareholders and qualifying employees are being invited to participate in the fundraising pursuant to an offer that may raise up to an additional £2.2 million (before expenses).

The Company will raise up to £13.3 million (before expenses) through the first tranche of the fundraising. The Company will raise a further £14.2million (before expenses) through the second tranche of the fundraising subject to certain milestones and conditions being achieved (or waived by certain of the investors). The Directors believe the net proceeds of the first fundraising and the second fundraising will, assuming that these are received in full, give the Company sufficient cash to fund it through to cash flow break even. The funds will be applied towards:
• Achieving FDA approval of Aorfix (TM) in the U.S.;
• Launching Aorfix (TM) post FDA approval in the U.S. market through the Company’s own direct sales force;
• Launching Aorfix (TM) post approval into the Japanese market with the Company’s experienced distribution partner;
• Further investment in sales and marketing infrastructure in key European markets, building on the success achieved in the UK and Germany;
• Expansion of production capacity;
• Completion of the Aorfix (TM) development projects initiated in 2010 (size range extension and next generation delivery system); and
• Development of the Company’s endovascular stent graft for the treatment of thoracic aortic aneurysms.

The fundraising is subject to the approval of the shareholders of the Company at a General Meeting to be held on 6 May 2011. A circular containing a notice convening the General Meeting has today been posted to the Company’s shareholders.

The Company today also announces Board changes, which are set out below in the full announcement, and the publication of preliminary results for the financial year ended 31 December 2010. Both the circular and the preliminary results will be available to view on the Company’s website www.lombardmedical.com.

Commenting on the fundraising, John Rush, Chairman of Lombard Medical, said:
“The successful financing announced today is expected to be sufficient to take the Company through to cash flow break even, providing the necessary resources to achieve our long‐term business plans, including the launch of Aorfix (TM) post approval in the U.S. The first tranche of up to £13.3 million will fund the Company through to Q3 2012 and the anticipated approval of Aorfix (TM) in the U.S., will trigger payment of the second tranche of £14.2 million.”

Simon Hubbert, Chief Executive Officer, said:
“We welcome the continued support of our existing shareholders as well as the addition of two of the most highly regarded investors in medical technology, Abingworth and MVM. Their confidence in the long‐term prospects for Aorfix (TM) is further strengthened by the excellent 2010 results announced today, which show accelerating penetration in Europe’s largest markets.”

Lombard Medical Technologies plc

Lombard Medical Technologies plc
AAA stent graft manufacturer

Downloads

DownloadFull Press Release

Latest News

Clinical study supports the use of Cheetah Medical's technologies

Cheetah Medical, a leader in non-invasive hemodynamic monitoring, has announced the publication of a major clinical study designed to evaluate stroke volume guided resuscitation in ICU patients with severe sepsis and septic shock

Vertos Medical Secures $28m in Latest Round of Funding

Vertos Medical Inc., a leader in the minimally invasive treatment of lumbar spinal stenosis has announced that it has completed a $28 million financing round.

VitalConnect Announces Closure of $33m Series C Financing

VitalConnect, a leader in medical-grade wearable biosensor systems, has announced that it has closed a Series C Preferred Stock equity financing round of $33 million led by new investors MVM Life Science Partners and Baxter.

Providence Medical Technology announces new equity financing of $10.5 million

Providence Medical Technology, Inc., an innovator in tissue-sparing, cervical-fusion technology, has announced the closing of $10.5 million in new equity financing for the company.

Wilson Therapeutics announces that WTX101 meets the primary endpoint in Phase 2 study in Wilson Disease

Wilson Therapeutics AB has announced that the Phase II study of WTX101 (bis-choline tetrathiomolybdate; Decuperate®), an investigational first in class copper modulating agent with a unique mode of action for the treatment of patients with Wilson Disease, met its primary endpoint.

MVM invests €15.2m in Valneva SE

Valneva SE is a commercial stage vaccine company with products to prevent Japanese encephalitis and cholera