These proceeds will be used to support SpineGuard’s growth strategy: accelerate the adoption of its smart drilling devices for spine fusion and the development of innovations derived from its proprietary DSG technology platform.
There were two steps for this round of fresh equity finance:
- Round 1 in favor of a limited number of European institutional investors
- Round 2 in favor of certain managers, directors or consultants of the company
Pierre Jérôme, CEO and co-founder of SpineGuard, said: “Following the successful launch of PediGuard Threaded and the first surgeries performed with our DSG integration module for ‘single-step’ screw insertion, these new proceeds will enable SpineGuard to reinforce DSG technology’s position as standard of care. I would like to warmly thank all those who subscribed to this equity round.”
Terms of the Equity Funding
488,190 new ordinary shares with a nominal value of 0.20 Euros each have been created of which:
- 451,250 new ordinary shares issued in favor of a limited number of institutional investors in accordance with resolution #23 of the Extraordinary Shareholders meeting held on the 25th of June 2015 and in compliance with article L. 411-2 II of the French Monetary Code (Code monétaire et financier);
- 36,940 new ordinary shares issued in favor of certain managers, directors or consultants of the company in compliance with the categories listed under resolution #10 of Extraordinary Shareholders meeting held on May 11, 2016, and in compliance with article L.225-138 of the French Code of commerce;
- The issue price of the new shares is 4.00 euros per share, representing a discount of 9.37 percent to the weighted average share price of the last 20 days of trading prior to the funding;
- The clearing and settlement (règlement-livraison) should take place by April 12, 2017.
A shareholder holding 1 percent of the company’s shares prior to the equity funding that would participate to it would end with 0.91 percent.
Use of Proceeds
The net proceeds strengthen SpineGuard’s financial resources, open up additional sources of funding and with its already existing resources1 will fund the implementation of its strategy, in particular:
- To reinforce its primary commercial focus on the U.S. market and support certain geographies with strong potential for sales of the DSG technology;
- Business Development activities to sign new partnerships with the spine industry for co-developing other DSG Smart Screws;
- To broaden its proprietary technology offerings to new applications and functions (combination with surgical robots, bone quality measurement, entry point determination) as well as new surgical fields beyond spine (joint reconstruction, trauma, maxilla facial or dental).
Listing of the New sShares
The new shares will bear the same rights than existing shares. They will list on Alternext Paris under the same ISIN code as the existing shares FR0011464452. The new shares should be listed and available for trade on Alternext Paris on April 10, 2017.
Once the equity funding is complete, the total number of issued shares will be 5,601,215.
Pursuant article 211-3 of the General Regulations of the Autorité des Marches Financiers (AMF), this operation does not require a prospectus submitted to the approval of the AMF.
SwissLife Banque Privée acted as sole manager and book runner for this equity funding.