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Initial Public Offering of Medicortex Finland Plc on the First North Growth Market Finland 13 June – 27 June 2022

Summary

Medicortex Finland Plc (“Medicortex” or “Company”) is arranging an Initial Public Offering (“IPO”) on First North 13 June – 27 June 2022. The Company aims to raise gross proceeds of approximately a maximum of EUR 3 million by offering a maximum of 6,000,000 Offer Shares in the Company for subscription at a subscription price of EUR 0,50 per share. The proceeds from the offering are intended to be used primarily for the development of Medicortex’ product and execution of the Company’s business strategy.

Medicortex Finland Plc is a Finnish biotechnology company specializing in developing brain injury diagnostics. The Company is developing a diagnostic test for the detection of traumatic brain injury (TBI). Additionally, the Company has future plans for a drug development program for traumatic brain injury. More information on the Offering can be found on this webpage. Prior to making an investment decision, carefully acquaint yourself with the Prospectus prepared by the Company in connection with the Offering and approved by the Finnish Supervisory Authority (FIN-FSA). The Prospectus in English is a translation of the original Finnish prospectus approved by the FIN-FSA.

Medicortex in brief

Medicortex is a Finnish biotechnology company founded in 2014 and is headquartered in Turku, Finland. The Company is developing a diagnostic test for detection of traumatic brain injury (TBI). The Company also has future plans for a drug development program within the area of TBI. A brain injury is a serious condition for an individual, and the burden to society is significant. Medicortex wants to be in the forefront in developing a solution to this growing problem.

TBI is referred to as a “silent epidemic” due to the low awareness despite its high prevalence, particularly mild TBI, owing to a lack of tools with sufficient thresholds of detection. Based on the Company’s management’s assessment, there is a growing need for new diagnostic tests and the potential customer base is vast.

Medicortex has discovered a new biomarker that can be used for the detection of TBI and concussion. The finding and the technology surrounding it has been protected by several patent applications. Medicortex has received several awards and recognitions for its innovation, as well as research funding from major funders, such as the US Department of Defense’s medical research funds.

Information About the Offering

Medicortex Finland Plc is arranging an Initial Public Offering. The Company preliminarily offers a maximum of 6,000,000 Offer Shares. In connection with the Offering, the Company’s Board of Directors is entitled to increase the number of Offer Shares by a maximum of 2,000,000 new shares to cover possible oversubscription situations (the ”Over-allotment Option”). If the Over-allotment Option is exercised in full, a maximum of 8,000,000 Offer Shares can be issued.

The Offering consists of

(i) an institutional offering to institutional investors in Finland, Sweden and Denmark and internationally in accordance with the applicable legislation, excluding the United States (the “Institutional Offering”); and

(ii) a public offering to private individuals and entities in Finland, Sweden and Denmark (the “Public Offering”).

The preliminary number of Offer Shares offered to private individuals and entities in Finland, Sweden and Denmark in the Public Offering is a maximum of 4,800,000 Offer Shares. The preliminary number of Offer Shares offered to to institutional investors in Finland, Sweden and Denmark and internationally in accordance with the applicable legislation, excluding the United States in the Institutional Offering is a maximum of 1,200,000 Offer Shares. Depending on the demand, the Company may reallocate Offer Shares between the Institutional Offering and the Public Offering in deviation from the preliminary number of Offer Shares in accordance with the terms and conditions.

The subscription price for the shares if EUR 0,50 per share. Commitments in the public offering must be for no less than 1,000 shares and no more than 199,999 shares.

In the share issue, the Company aims to raise gross proceeds of approximately a maximum of EUR 3 million. In the case the Over-allotment Option is exercised, gross proceeds of EUR 4 million.

Reasons For the Offering and Use of Proceeds

The objective of the Offering and the listing is to improve Medicortex’s financial ability to further the development of its diagnostic products for detecting brain injuries. Furthermore, the Offering is aimed to broaden the ownership base of the Company’s shares and to offer existing and new shareholders the ability to trade shares in Medicortex as well as to improve the quality of Medicortex’s shares as a method of payment in the event of potential strategic acquisitions.

Proceeds from the Offering will be primarily used for development of the diagnostic kit. The Company believes that net proceeds from the Offering would allow the development of the diagnostic test until the end of clinical evaluation of the prototype so that the regulatory process could be initiated in the next step. Company may use at its discretion some of the proceeds for preparation and initiation of the drug development program and other projects listed in the Prospectus, as well as patenting costs, but without compromising the main objective of TBI diagnostic test development.

Medicortex’s strengths

In the Company’s view, Medicortex has several strengths:

  • The Company’s biggest strength is in the proprietary idea itself. As per Company’s assessment it is innovative and something that does not exist at the moment, providing a competitive advantage.
  • The new biomarker and the technology surrounding it has been protected by several patent applications. Some patents have already been granted.
  • The Company has comprehended that there is huge need for new innovative and efficient diagnostic tools.
  • The Company’s Management has noted that brain injury diagnostics market is large and the potential customer base vast. Medicortex has gained much interest.

Medicortex’s personnel have a variety of relevant competencies. The Company’s management and Board of Directors include experienced leaders with experience in the pharmaceutical and biotech industry, drug development, GMP production and manufacturing. The Company also benefits from an adept Scientific and Advisory Board.

From the CEO

”Medicortex is an outstanding biotechnology company. We want to be at the forefront in tackling a global problem by developing diagnostics for head injury. We have been successful in the very difficult space of translating an idea through to the clinic stage – which is a huge step! Three different clinical trials were performed, which all confirmed our hypothesis of increased levels of the biomarker in patients with confirmed TBI.

We have benefited from experienced leadership and a very professional team, as well as a group of multidisciplinary consultants working together with management to successfully meet the milestones. Grants have been received from the US Department of Defense, Business Finland, EU and Centre for Economic Development, Transport and the Environment (ELY) as well as 246 investors. Several patents have been submitted and granted. We believe Medicortex holds lots of potential, and this has been recognized in the world with many acknowledgements – for a reason!”

Adrian Harel

Adrian Harel
CEO, Medicortex Finland Plc

Important dates

Subscription period of the Offering commences13 June 2022 at 9:30 (8:30 Swedish and Danish time)
The earliest date when the Offering may be discontinued20 June 2022 at 16:30 (15:30 Swedish and Danish time)
Subscription period of the Offering ends (note. Subscription period may already be discontinued 20 June 2022 at 16:30 Finnish time)27 June 2022 at 16:30 (15:30 Swedish and Danish time)
The results of the Offering are announced in a company release (estimated)28 June 2022
Entering of the Offer Shares on the book-entry accounts is expected to start (estimated)29 June 2022
Trading in the Shares on First North is expected to commence (estimated)4 July 2022

Subscription place

Nordnet acts as the subscription place of the public offering through its online service at www.nordnet.fi/fi/medicortex.

  • Subscriptions can be made in the online service with bank identifiers of Nordnet, Aktia, Danske Bank, Handelsbanken, Nordea, Oma Säästöpankki, Osuuspankki, POP Pankki, S-Pankki, Säästöpankki and Ålandsbanken. A commitment can also be made on behalf of an institution through Nordnet’s online service.
  • Subscriptions using an equity savings account can only be submitted to equity savings account in Nordnet.
  • When agreed separately, a subscription can also be submitted in the Public Offering in Nordnet’s office at the address Yliopistonkatu 5, 00100 Helsinki.

Releases

Company releases:

Press releases:

The information presented herein is not and should not be construed as an investment recommendation or solicitation to subscribe for, buy or sell securities. There are always risks associated with investing and financial instruments. The value and return on investment may change and the capital invested may even be lost altogether. Historical development is not a guarantee of future returns.

Investors are advised to familiarize themselves with the terms and conditions of the IPO and to read the Propectus approved by the Finnish Financial Supervisory Authority before making an investment decision in order to understand the potential risks and benefits associated with the investment. Approval of the Prospectus by the Finnish Financial Supervisory Authority shall not be construed as approval of securities to be offered and admitted to trading. The brochure is available electronically on the Company’s website sijoittajat.medicortex.fi (this page) as well as on Nordnet’s website.