ONWARD Medical Initiates Major Capital Increase
ONWARD Medical N.V., a pioneering neurotechnology company, is embarking on an ambitious capital increase expected to yield approximately EUR 50 million. This capital initiative demonstrates ONWARD's commitment to advancing therapies for individuals facing spinal cord injuries and related mobility challenges.
Details of the Private Placement
The capital increase will be executed through a private placement directed at institutional investors. By offering new ordinary shares valued at EUR 0.12 each, ONWARD aims to exclude existing shareholders' preemptive rights to expedite the funding process. Interested investors will have an opportunity to participate in this offering, which is primarily anchored by long-term institutions.
Fund Allocation Plans
ONWARD envisions utilizing the funds from this private placement to support various key initiatives:
- Enhancing product development and clinical studies, especially for the investigational ARC-IM System, which targets blood pressure instability, representing about 40% of the intended use of the funds.
- Expanding sales operations to bolster the commercialization of the ARC-EX System across the United States, Europe, and selected other markets, accounting for 30% of the raised capital.
- Scaling administrative and quality operations, which will take up 20% of the net proceeds.
- Covering general corporate purposes and working capital needs, which will utilize 5% each of the total amount raised. This allows for flexibility and efficient management of day-to-day operations.
- Addressing financing costs linked to existing debt obligations, also representing 5% of the funds.
Strategic Operational Insights
ONWARD Medical's leadership asserts that the net proceeds from this capital placement will secure enough cash runway to sustain operations through at least the end of 2026, provided that the current debt facility remains untouched. This financial strategy positions ONWARD to respond effectively to ongoing development and operational demands.
Bookbuilding Process and Investor Engagement
The bookbuilding phase for this Private Placement will commence shortly after the release of this announcement. Euronext has been notified to temporarily halt trading of ONWARD Medical's shares during this bookbuilding period to ensure broad accessibility for interested investors.
Joint Coordinators and Bookrunners
Leading global financial institutions UBS and Stifel are appointed as Joint Global Coordinators for this placement, collaborating with Bank Degroof Petercam SA/NV to undertake this private offering. Their expertise and established networks will help maximize the placement's success, while ensuring compliance with regulatory requirements.
About ONWARD Medical
Based in the Netherlands, ONWARD Medical is at the forefront of neurotechnology innovation aimed at restoring movement and independence to individuals with spinal cord injuries and other mobility impairments. The company has developed ARC Therapy, a breakthrough solution proven through rigorous trials, reflected in its ten FDA Breakthrough Device Designations to date.
The flagship ARC-EX System is now commercially available in both the US and Europe, while the investigational ARC-IM System is on the horizon, expected to provide more advancements in treating spinal cord injury recovery.
Contact Information
For Media Inquiries:
Sébastien Cros, VP Communications
media@onwd.com
For Investor Inquiries:
investors@onwd.com
Frequently Asked Questions
What is the purpose of ONWARD Medical's capital increase?
The capital increase aims to raise approximately EUR 50 million to fund product development and operations related to spinal cord injury therapies.
Who are the primary financial institutions involved?
UBS and Stifel are acting as Joint Global Coordinators, along with Bank Degroof Petercam as Joint Bookrunners for the Private Placement.
How will the funds be utilized?
Funds will support development initiatives, expand sales operations, scale administrative functions, and cover working capital and financing costs.
What is the timeframe for the bookbuilding process?
The bookbuilding process is set to start immediately after this announcement and will last one business day, subject to possible acceleration or extension.
Where is ONWARD Medical operationally based?
ONWARD Medical is headquartered in the Netherlands, with facilities in Switzerland and an office in Boston, Massachusetts, focusing on global neurotechnology innovations.
