MagForce Publishes Financial Results and Operative Highlights for 2012

MagForce Publishes Financial Results and Operative Highlights for 2012 
BERLIN -- (Marketwired) -- 06/27/13 --  MagForce AG  / MagForce
Publishes Financial Results and Operative Highlights for 2012. Ad hoc
announcement according to Section  15 WpHG. Processed and transmitted
by Thomson Reuters ONE. 
The issuer is solely responsible for the content of this
announcement. 
* Strategic realignment and operative restructuring completed 
* Successful capital increase totaling EUR33.5 million (after
period-end) 
* Dr. Ben J. Lipps appointed Chairman of the Management Board as of
September   2013 (after period-end) 
* Focus on expanding strategic partnerships as well as on
establishing and  commercializing the NanoTherm(R) therapy 
* Post-marketing study approval from the Federal Institute for
Drugs and Medical Devices and the Federal Office for Radiation
Protection (after period-end) 
MagForce AG (Frankfurt, Xetra: MF6), a leading medical  device
company in the area of  nanotechnology with a focus on oncology,
published  today its financial  results and operative  highlights for
the fiscal year ending on December 31, 2012. 
Christian  von Volkmann,  CFO and  co-CEO of  MagForce comments: 
"For MagForce, 2012 was  characterized  by  the  Company's  important
strategic realignment and operational restructuring. We concentrated
all of our activities and finances on both  expanding  our  strategic
 partnerships as  well  as  on establishing the NanoTherm(R)  therapy
in the  oncology field and  its corresponding post-marketing study. 
The  most  important milestone  for  MagForce  was the capital
increase announced  in December 2012 and successfully  completed in
March 2013, amounting to  EUR33.5 million against cash and  noncash
contributions. Despite the difficult market  environment, the
transaction attracted renowned international investors. This capital
increase allows us to lay a solid foundation for the implementation
of our strategy and helps to put our Company on the path to success.
We are also extremely pleased that Dr. Ben J. Lipps, former Chairman
of the Management Board at  Fresenius Medical Care AG, will be 
joining the Management Board of MagForce as  Chairman beginning in
September 2013 to support  us as we move forward. Both the
overwhelming response of investors to the capital increase and the
fact that we  have  added  Dr.  Lipps  to  our  management team only
reassured us that our strategic realignment and operational
restructuring were the right decisions." 
The  highlight of the Company's development in the 2012 reporting
period was the completion  of  the  strategic  realignment  and 
operational restructuring  of MagForce AG. Ultimately, MagForce
focused on establishing  the NanoTherm(R) therapy on  the oncological
market and  on commercializing it for  value creation in the
short-term.  MagForce therefore  concentrated  on  the primary steps
needed for successful marketing.  As  a  result,  we  built  up  a 
network  with  leading neurosurgeons  and neuro-oncologists and 
developed a clinical  trial plan for a three-armed,  randomized 
study  on  glioblastoma  patients  to underscore  the benefits   of 
the  NanoTherm(R)  therapy  and facilitate  its  acceptance  among
specialists.  In 2012, the  study was submitted to  the Ethics 
Commission, the Federal  Institute  for  Drugs and  Medical  Devices
and the Federal Office for Radiation Protection and was approved in
the first half of 2013. 
In accordance with the new strategy, the core segments of the
Company, including Clinical Development, Business Development, Medical
Affairs and Legal & IP, were consolidated  to the  Munich site.  In
addition  to the Software Development and Finance  departments,  the 
production  of nanoparticles and NanoActivators(TM) remained  at the
Company's headquarters in Berlin. At the same time, early-stage
research  activities were substantially reduced and can be outsourced
as needed. As  a result, the Company expects seven-digit annual
savings (in euros) in these areas. 
In  the short to medium term, MagForce will use the majority of its
finances for the  post-marketing study of glioblastoma, which  will
greatly contribute to the Company's  strategic  expansion.  MagForce 
will  also focus on establishing the NanoTherm(R)  therapy  on  the 
market  with its distribution partners, including DELRUS  and 
TekGrup,  its development  partners,  such  as the Mayo Clinic for
gastro-intestinal tumors and the Department of Urology at Duesseldorf
University for prostate cancer, as well as the production of
nanoparticles. 
Result of operations, net assets and financial position 
Before  starting the post-marketing  study and in  accordance with
expectations, MagForce  did not  generate any  revenues with  the
NanoTherm(R)  therapy in 2012 (previous  year: EUR41 thousand). As a
result of restructuring measures, operating expenses  were  reduced 
to EUR5,846  thousand  (previous year: EUR7,022 thousand), mainly  due
to lower personnel costs. As  a result, the Company also generated a
lower net  loss  for  the  year  with  EUR5,717  thousand  (previous
year: EUR8,586 thousand).  This means that MagForce's performance  in
2012, also with regard to costs, was as forecasted in its report from
the previous year. 
The  net  loss  was  partially  offset  by  cash  inflows from
capital increases amounting to EUR5,455 thousand in the reporting
year. In 2012, the Company's share capital  was successively
increased  from EUR4,127 thousand to  EUR5,316 thousand by issuing 
new shares against cash contributions.  As of the reporting date,
other liabilities  increased by a total of EUR16,081  thousand from
the takeover of loan receivables from Nanostart AG and Venture Tech
GmbH by Avalon Capital One GmbH. 
Cash flow from operating activities amounted to EUR-5,473 thousand
(previous year: EUR-4,537). Cash  flow from  investing activities 
totaled EUR-40 thousand (previous year:  EUR-1,258 thousand) while the
cash  flow from financing activities amounted to  EUR6,187 thousand
(previous year: EUR4,816  thousand). As of the reporting date,
December   31, 2012, the Company's  cash  and  cash  equivalents 
amounted  to EUR689 thousand (previous year: EUR14 thousand). 
Owing  to the  net loss,  MagForce's balance  sheet was  indebted as
of December 31, 2012. However,  the Company  announced a  capital
increase against cash and noncash  contributions in December 2012 and
successfully generated EUR33.5 million from its implementation in
March 2013. This underscores the trust and confidence that 
international investors have in MagForce technology and the MagForce
team. The  Company now  has adequate capital for  achieving its  next
milestones. The Company's liquidity totaled EUR17.6 million following
the capital increase. 
Outlook 2013 
Due  to the  early phase  of commercialization  for its  innovative
therapy, the Company  cannot be sure whether increasing revenues can
be realized in 2013. The Company  expects to generate an increasing
net loss from operating activities as compared  to 2012 as part of 
its roll-out plan. This  will mainly be due to the start  of the
clinical post-marketing study and preparations for market entry in
additional  countries.  This corresponds  to  the  objectives  of the
series of measures  passed in 2012, the related restructuring of the
Company and the focus on strategically important value drivers. 
The Company expects an increased negative cash flow from operating
activities in the  fiscal year 2013, which is largely due  to th
e
reduction of liabilities and financing  of measures in  connection
with establishing the NanoTherm(R) therapy. Cash  flow from financing
activities will be clearly positive due to the capital increase  from
 March  2013, despite the  repayment  of  all  loan  liabilities
amounting to EUR15.9 million. 
About MagForce AG 
MagForce  AG is a leading medical device company in the field of
nanomedicine in oncology.  The Company's proprietary, NanoTherm(R)
therapy, enables the targeted treatment  of  solid  tumors  through 
the intratumoral  generation of heat via activation  of
superparamagnetic nanoparticles. NanoTherm(R),  NanoPlan(R), and 
NanoActivator(TM)  are  components  of  the  therapy  and  have
received EU-wide regulatory  approval  as  medical  devices  for  the 
treatment of brain tumors. MagForce,  NanoTherm(R),  NanoPlan(R), 
and NanoActivator(TM) are trademarks of  MagForce   AG   in  selected 
countries.  For  more  information,  please visit www.magforce.com. 
Disclaimer 
This release may contain forward-looking statements and information
which may be identified by formulations using terms such as "expects",
"aims", "anticipates", "intends",  "plans", "believes",  "seeks",
"estimates"  or "will". Such forward-looking   statements   are  
based  on  our  current expectations  and  certain assumptions, 
which may be subject to a  variety of risks and uncertainties. The
results  actually achieved  by MagForce  AG may  substantially differ
from these forward-looking  statements. MagForce AG  assumes no
obligation  to update these forward-looking  statements or to correct
 them in  case of developments, which differ from those, anticipated. 
MagForce_Press Release_June 27, 2013: 
http://hugin.info/143761/R/1712357/568253.pdf 
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Source: MagForce AG  via Thomson Reuters ONE 
[HUG#1712357] 
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