Medigene AG Announces Share Capital Reduction Implementation
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Medigene AG Announces Share Capital Reduction Implementation
Medigene AG (FSE: MDG1), a leading immuno-oncology platform firm, has announced the successful implementation of a 2:1 share capital reduction and consolidation. This reduction comes as part of a strategic initiative resolved during the Annual General Meeting, reflecting the company's commitment to enhance shareholder value.
Details of the Share Capital Reduction
The consolidation of shares will result in the total number of issued shares decreasing from 29,475,189 to 14,737,594. This reduction means that for every two shares held, shareholders will now have one share. It signifies a critical move designed to streamline the capital structure and potentially increase the market perception of the company.
Impact on Shareholders
Despite the substantial reduction in share quantity, individual shareholders will not experience a change in the total value of their holdings. The overall capitalization of Medigene remains intact, and shareholders will not see any dilution in their ownership percentages as a result of this consolidation. The converted shares will be reflected in the trading and deposit accounts automatically.
Market Operations Post-Consolidation
Upon consolidation, the share trading will transition to the new securities identification number, WKN A40ESG (ISIN: DE000A40ESG2), commencing August 29. This operational change promotes better liquidity for shareholders and may raise the perceived market value of the shares.
Accounting Reclassification
As part of the consolidation process, an important accounting adjustment will take place. The company will transition its reporting balance from “subscribed capital” to “capital reserves” within its financial statements. This strategic accounting move intends to bolster the market value of Medigene’s share well above its nominal value of EUR 1.00.
Addressing Shareholder Concerns
For shareholders whose share count results in non-divisible quantities, Medigene plans to offer a “partial rights settlement.” This system allows these shareholders to choose whether to buy or sell fractional shares. Notifications will be sent out from the depositary bank after the designated reference date, providing instructions for these matters.
About Medigene AG
Medigene AG specializes in the development of T cell receptor (TCR)-guided therapies targeted at effectively combating cancer. Their innovative End-to-End Platform generates T cell receptors that are sensitive, specific, and safe. This technology is not only applied in their in-house product pipeline but also in potential partnerships.
Current Developments in Medigene's Pipeline
Medigene is advancing its prominent TCR-T therapy, MDG1015, which is positioned to become a leading treatment option for various solid tumor conditions. The company employs advanced techniques to develop T cells capable of overcoming the immunosuppressive tumor microenvironment. MDG1015 is projected to file for an Investigational New Drug (IND) in the upcoming quarters, demonstrating Medigene's commitment to innovation in cancer therapy.
Contact Information
For shareholder inquiries, please contact:
Pamela Keck
Phone: +49 89 2000 3333 01
Email: investor@medigene.com
Frequently Asked Questions
What is the share capital reduction ratio implemented by Medigene?
The share capital reduction ratio implemented by Medigene is 2:1, meaning shareholders will receive one share for every two shares they previously held.
When will the new shares start trading?
The new shares will start trading under the new securities identification number on August 29.
Will shareholders see a change in the value of their investments?
No, shareholders will not experience a decrease in their investment value due to the consolidation; the total value remains unchanged.
What happens to fractional shares after consolidation?
Shareholders with fractional shares will have the option to participate in a “partial rights settlement” to decide on managing their fractional shares.
How can investors stay updated on Medigene’s progress?
Investors can stay updated on Medigene’s progress by following their official communications, including press releases and updates posted on their website.
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