Nexstim Plc is Negotiating16.10.2017 08:00:00 CET
Company announcement, Helsinki, 16 October 2017, at 9:00 am
Nexstim Plc (NXTMH:HEX, NXTMS:STO) ("Nexstim" or "Company"), a medical technology company developing and marketing pioneering navigated non-invasive brain stimulation systems for both therapeutic and diagnostic applications, is negotiating a potential assembly and distribution arrangement in China and a potential financing arrangement with a European growth debt provider.
Under the proposed assembly and distribution arrangement, the Chinese partner would assemble at its facilities certain Nexstim NBTŪ and NBS products and be appointed their distributor in China. Nexstim would grant the partner a license to market these Nexstim products in China under the Nexstim brand, but would otherwise retain all rights to its intellectual property and software. In order to implement the proposed arrangement, the parties are also investigating a financing arrangement where the partner would potentially grant Nexstim a loan of EUR 1 million and subscribe for shares in Nexstim in the aggregate subscription price of up to EUR 1 million.
Nexstim is also negotiating a financing arrangement with a European growth debt provider. The proposed financing arrangement would comprise of a senior secured term loan facility of EUR 4 million. Loans drawn down under the facility would carry interest at the rate of 10.75% per annum. The financing arrangement would also include issuing warrants over new shares in Nexstim. The maximum number of new shares to which the warrants would entitle is expected to be calculated as 480,000 divided by the 90-day volume-weighted average price of the Nexstim share. The proceeds of the financing arrangement would primarily be used in furtherance of the bringing to market of Nexstim NBTŪ and NBS products in Europe and in particular in the United States.
There is no certainty as to the outcome of either of these negotiations or as to the terms on which either of these transactions may proceed. Nexstim will make further announcements as and when appropriate.
NEXSTIM PLC
Martin Jamieson, Chairman and CEO
Further information is available on the website www.nexstim.com or by contacting:
Nexstim +447715163942
Martin Jamieson, Chairman and CEO martin.jamieson@nexstim.com
UB Securities Oy (Certified Adviser) +358 (0)9 2538 0246
Citigate Dewe Rogerson +44 (0)207 2822949
David Dible/Isabelle Andrews/Shabnam Bashir david.dible@citigatedr.co.uk
About Nexstim Plc
Nexstim is a medical technology company developing and marketing pioneering navigated non-invasive brain stimulation systems for both therapeutic (NBTŪ system) and diagnostic (NBS system) applications. Nexstim's NBS system is the only FDA cleared and CE marked system based on navigated Transcranial Magnetic Stimulation (nTMS) for the pre-surgical mapping of the speech and motor cortices of the brain. Based on the same technology platform, the Company has developed the Navigated Brain Therapy (NBTŪ) which is CE marked in Europe for the treatment of stroke, major depression and chronic neuropathic pain.
Nexstim recently filed a 510(k) submission with FDA for NBTŪ system for the treatment of Major Depressive Disorder (MDD). Nexstim looks forward to introducing the NBTŪ system for this important indication in early 2018. The NBTŪ system is currently in a supplemental Phase III study, E-FIT trial, which will recruit 60 patients. The trial is expected to complete in Q2 2018, allowing Nexstim to file for FDA clearance. FDA clearance would allow Nexstim to start marketing and selling its NBTŪ system for stroke rehabilitation in the USA.
Nexstim shares are listed on the Nasdaq First North Finland and Nasdaq First North Sweden. For more information please visit www.nexstim.com