Debt Case Study: MagForce AG

EUR 35m European Investment Bank Growth Finance Facility
magforce EIB FCF

Company Description

  • MagForce AG is a leading medical device company in the field of nanomedicine focused on oncology, operating in the EU and US
  • MagForce’s proprietary NanoTherm® therapy enables the targeted treatment of solid tumors. MagForce is the first company to receive European approval for a medical product using nanoparticles
  • The core product range includes NanoTherm®, a ferrofluid liquid that reacts to the presence of a magnetic field; NanoPlan®, a therapy planning software; and NanoActivator®, a magnetic field applicator used for tumors in all areas of the body
  • Founded in 1997, and headquartered in Berlin, MagForce currently employs approximately 25 people and has been listed on the German stock exchange since 2007

Transaction Highlights

  • To finance the FDA approval and product roll-out in the US, the company was required to raise additional funds
  • FCF suggested to apply for the development debt programme by the EIB
  • Advantages of the EIB development debt for the company are:
    • The possible, large financing volumes combined with lower costs compared to equity
    • The EIB as a financing partner with long-term horizon
    • The non-dilution of current shareholders
  • The EIB granted MagForce a loan facility of >EUR 35m to obtain regulatory approval in the US, to perform clinical trials in Europe and to finance the product roll-out
  • Standard market rates are included, i.e. cash, deferred and performance-based interest rates

Key Financials

Magforce revenue forecast

Financing Options

Magforce Financing options

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