MediWound Secures $25 Million in Private Placement Financing

26 July 2024
MediWound Ltd. (Nasdaq: MDWD), a prominent player in the field of enzymatic therapeutics for tissue repair, has finalized a share purchase agreement with various investors, including Mölnlycke Health Care. Mölnlycke, a leader in wound care and surgical solutions, is spearheading the investment with a substantial $15 million contribution. This agreement encompasses the sale of 1,453,488 of MediWound's ordinary shares at a price of $17.20 per share, resulting in total gross proceeds of $25 million.

The funds raised through this private investment in public equity (PIPE) will be channeled towards advancing the pre-commercial activities of EscharEx, a key product in MediWound's pipeline. Additionally, the proceeds will be utilized to accelerate the development of large-scale manufacturing capabilities for EscharEx and support general corporate purposes. The PIPE Offering is anticipated to close soon, pending customary closing conditions.

Ofer Gonen, CEO of MediWound, expressed his pride in securing robust support from Mölnlycke and other investors. He emphasized that this significant investment is poised to enhance the company's strategic plans for EscharEx, ultimately creating long-term value for stakeholders and improving patient care standards.

Zlatko Rihter, CEO of Mölnlycke, conveyed enthusiasm about the strategic investment in MediWound, highlighting that it aligns with their mission to introduce innovative solutions in wound care. Rihter noted that the investment, along with the initiation of the EscharEx Phase III clinical trial, sets the stage for a successful future partnership between the two companies.

Simultaneously, MediWound and Mölnlycke have entered into a collaboration agreement to bolster their partnership. This agreement grants Mölnlycke specific rights, such as having a representative attend MediWound's R&D Committee meetings. Mölnlycke will also have the opportunity to engage in strategic partnership discussions and M&A processes under certain conditions. Furthermore, a stand-still clause in the agreement limits Mölnlycke's ownership to no more than 9.99% of MediWound's issued and outstanding ordinary shares.

In addition to the PIPE Offering, MediWound has signed a registration rights agreement with several investors, ensuring customary registration rights for the ordinary shares. These shares are being sold in a transaction that does not involve a public offering and have not been registered under the Securities Act of 1933 or any applicable state securities laws. As a result, the securities cannot be resold in the U.S. without an effective registration statement or an applicable exemption from registration requirements. MediWound has committed to filing a registration statement with the SEC to register the resale of the shares issued in the PIPE Offering.

MediWound Ltd. is recognized globally for its next-generation enzymatic therapeutics aimed at non-surgical tissue repair. The company's product portfolio includes NexoBrid®, an FDA and EMA-approved biologic for eschar removal in thermal burns, which significantly reduces the need for surgical intervention. Building on its core enzymatic technology, MediWound is developing EscharEx®, a Phase III-ready biologic for chronic wound debridement that offers substantial advantages over existing market products.

Mölnlycke Health Care, a leader in medical technology, specializes in innovative wound care and surgical solutions. With a history dating back to 1849 and a presence in over 100 countries, Mölnlycke continues to be at the forefront of healthcare innovation.

These strategic moves signify a robust partnership between MediWound and Mölnlycke, with a shared commitment to advancing wound care solutions and improving patient outcomes.

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