More than 3 million zlotys – this is the value of the funds raised by NanoGroup S.A. as a result of the subscription of Series I ordinary bearer shares, which closed on Friday, October 28. As emphasized by Piotr Mierzejewski, CEO of NanoGroup S.A., the financing thus obtained will enable the Company to continue its operations and ongoing projects in the coming months.
Pursuant to Resolution No. 19 of the Company’s General Meeting of June 30, 2022, NanoGroup S.A. conducted subscription for Series I ordinary bearer shares in October 2022. The subscription included 3,349,576 securities, all of which were subscribed for and all of which were allocated to a total of 13 legal or natural persons. As a result of the issue, after taking into account its costs, NanoGroup raised more than PLN 3 million.
– The goal of the Management Board’s activities over the last months has been to raise capital to enable Company’s continued operation and implementing its ongoing projects. Of course, the completed issuance does not mean stopping efforts to provide NanoGroup with additional funding. Nevertheless, it should be emphasized that the subscription for series I shares carried out will allow us to continue our ongoing operations in the coming months. It should also lend credibility to the company in the eyes of investors, since it has been practically entirely covered by people associated with the company. It is expected to facilitate securing further funding in the long run. In order to meet the expectations of investors, we believe that it is the persons closely associated with the company who are responsible for ensuring the financing of its operations in difficult market circumstances. We appreciate the commitment of the board members and existing shareholders, who gave credence to the strategy adopted by the Board of Directors with their own capital, and made it possible to complete the issue successfully. Our next priorities include intensifying research and development work in the Group’s key projects. We hope to raise a total of PLN 12 million in the long term, including funds from the current issue,” comments Piotr Mierzejewski, President of the NanoGroup S.A. Management Board.
Oncology and transplantation on target
Key projects that NanoGroup companies are currently working on include developing a Polish oncology drug candidate, PolEpi, and a perfusion fluid allowing for longer organ storage for transplantation. As explained by Prof. Tomasz Ciach, Member of the Board of Directors and head of scientific work at NanoGroup S.A., the funds raised are extremely important for continuing operations:
– The in-house scientific projects we are developing require a number of studies, and this, of course, means that we need money and time the most. I guess the last few months have been particularly difficult for the bio-tech sector as a whole, due to external factors. If anyone is making any investments now, they are far more likely to invest in drones or cannons than biotechnology. And we operate in a sector that needs a much more long-term perspective. Although it is worth noting that, for example, the fluid we are developing that allows for longer organ storage may also find application in the defense sector, he concludes.
Further financial prospects
The last few months have been an extremely busy time in terms of events at NanoGroup. Due to its difficult financial situation, the Company received 2 offers for the free disposal of shares, which were made by Tomasz Ciach and by GPV, and the Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych (“Closed Investment Fund of Non-Public Assets”). Both of these allow NanoGroup to acquire and then resell own shares free of charge, to raise cash needed for its business, research and development activities. The company can take advantage of them consecutively until December 31, 2024, in the case of the offer made by Tomasz Ciach, and until June 30, 2023, in the case of the offer by GPV and the Closed Investment Fund of Non-Public Assets.
– There is no denying that financially, the Company has recently found itself in a rather difficult situation. Innovation simply cannot happen in medicine without investors and without sustained funding. I know that we are working on promising projects, I know that their development still requires time and money, therefore, pursuing the Company’s interest, I have made an offer enabling the Company to continue selling these shares and thus raise funds to carry out further research and development activities,” Tomasz Ciach explained his decision. In doing so, he stressed that he remains in the board of directors and intends to continue leading the group’s scientific work. – I am going to state the obvious by saying that I am not a businessman, but a scientist. This fascinates me and is my lifelong passion. I once wanted to be a doctor – I didn’t become one, but I still feel the need to help patients in some way. Many of my friends have died of cancer, so I feel it is my duty to work on a drug that can help fight cancer,” Tomasz Ciach concludes.