MEDICREA Announces Capital Raise of € 13 Million Through A Successful Private Placement

LYON, France & NEW YORK--(BUSINESS WIRE)--The Medicrea Group (ISIN : FR0004178572 - ALMED, eligible to PEA-PME), pioneering the convergence of healthcare IT and next-generation, outcome-centered device design and manufacturing with UNiD™ ASI technology, announced today the successful capital increase for the benefit of a specific category of beneficiaries through the accelerated construction of an order book.

Due to strong investor demand, the Company issued 2,680,413 new shares with a nominal value of € 0.16 per unit, at a unit price of € 4.85, including issue premium, for a total amount of € 13 million, compared to approximately € 10 million originally planned, representing 21.08% of the Company's share capital after the transaction (the ‘Action’).

As an indication, the participation of a shareholder holding 1% of the share capital of the Company prior to the issue will become 0.79%.

The funds will be raised from international funds and / or investment companies carrying out multinational financial transactions in several, in support of Medicrea’s efforts:

1 / To accelerate the development, mainly in the United States, of the UNiD™ ASI platform to enable the Company to strengthen its position as a pioneer and world leader in personalized spinal technology, which includes comprehensive analytical services and biomechanical expertise for the collection and modeling of clinical data and the realization of patient-specific spinal implants; and

2 / To prepare for the commercialization of a new range of 3D-printed titanium interbody cages in the United States and Europe in preparation of pending regulatory clearances and sales agreements.

The proceeds of the capital increase associated with the current liquidity available should enable the Company to meet its future financial commitments over the next 18 months.

The Action was implemented by decision of the Board of Directors on 15 June, 2017 and the Chairman and Chief Executive Officer on 16 June, 2017, pursuant to the 9^th Resolution approved by of the Combined Shareholders' Meeting of May 11, 2017, at a price representing a discount of 9.94% compared to the volume-weighted average of the last twenty trading days preceding the decision of the Chief Executive Officer (€ 5.35) and 4.53% compared to the closing price of June 16, 2017 (€ 5.08).

The capital increase is carried out through the issuance of ordinary shares without preferential subscription rights in favor of a category of beneficiaries. The settlement of the new shares issued in connection with the capital increase and their admission to the Euronext Growth Paris exchange with Euronext Paris is scheduled for June 22, 2017. The new shares will bear current rights and will be admitted to trading on the Euronext Growth Paris exchange under ISIN code FR0004178572 - ALMED. The share capital of Medicrea will comprise 12,713,480 shares at the end of the settlement period. Thus, after the capital increase, the Company's share capital has significantly changed. Post transaction, the holding of Orchard International and its executives is 19.17% of the total capital and the free float is 80.83%.

Midcap Partners acts as Lead Partner & Bookrunner of the Action.

EuroLand Corporate acted as a consultant to the Company.

In accordance with the provisions of Article 211-3 of the General Regulation of the AMF (Autorité des Marchés Financiers), the offer of the Company's shares in connection with this capital increase for the benefit of a specific category of beneficiaries did not give rise to a submitted prospectus for the approval of the AMF. Detailed information about the Company, including its business activities, results and related risk profile, can be found in the Annual Financial Report for the year ended December 31, 2016, which is available for consultation, as well as other regulated information including press releases, on the Company’s website (www.medicrea.com).

Next financial publication: Sales for the 1st half of 2017: July 11, 2017, after market.

About Medicrea (www.Medicrea.com)

Through the lens of predictive medicine, Medicrea leads the design, integrated manufacture, and distribution of 30+ FDA approved implant technologies, utilized in over 100k spinal surgeries to date. Operating in a $10 billion marketplace, Medicrea is an SME with 175 employees worldwide, which includes 55 at its USA Corp. subsidiary in NYC. The Company has an ultra-modern manufacturing facility in Lyon, France housing the development and production of 3D-printed titanium patient-specific implants.

By leveraging its proprietary software analysis tools with big data and machine learning technologies supported by an expansive collection of clinical and scientific data, Medicrea is well-placed to streamline the efficiency of spinal care, reducing procedural complications and limiting time spent in the O.R.

For further information, please visit: www.medicrea.com.

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Medicrea is listed on
EURONEXT Growth Paris
ISIN: FR 0004178572
Ticker: ALMED

Caution

This press release is for informational purposes only. This press release does not constitute and cannot be regarded as an offer for public subscription or a solicitation of an interest in the public offering of financial securities. Dissemination of this press release in certain countries may constitute a violation of the legal provisions in force. The information contained in this press release does not constitute an offer of securities in France, the United States, Canada, Australia, Japan or any other country.