Nanostart currently holds some 2.9 million, or 77%, of the shares
of MagForce, which at recent market prices is worth between EUR
120 und 140 million. Experience with other companies in similar
situations suggests that this market valuation may rise substantially
once MagForce receives initial regulatory approval.
Options
Nanostart has several possible routes to realize the profits
from its shareholding in MagForce Nanotechnologies:
- It could sell its entire stake in MagForce in a major “trade sale”,
for example to a pharmaceutical company. This is the classic exit
route for venture capital investors. Acquisitions of companies in
this phase of development are particularly attractive for major
corporations because they acquire a new technology which is ready
for commercialization or already commercialized, which they can
then directly market. With the successful completion of phase II
clinical trials and initial regulatory approval, the critical hurdle has
already been passed. The company valuation paid in a trade sale
can be a multiple of the current market value.
- Nanostart could sell a part of its shareholding through one or
more block trades. The objective here would be to capitalize on
high estimated valuations from financial investors who seek to
participate in the further appreciation of MagForce shares.
- Finally, Nanostart could continue to hold its majority ownership stake, with no sale of shares on a large scale. The benefit of this route would be that Nanostart could continue to play an active role in supporting MagForce in its commercialization and marketing efforts. In this scenario, MagForce as the world’s sole provider of Nano-Cancer® therapy becomes a global corporation in its own right. The actual sales model could vary by geographic region; where partnerships are preferable to going it alone, this could be on the basis of joint ventures or licensing arrangements. Nanostart would profit from the growing value of its shareholding as well as any future dividend distributions.
Through their global network of business contacts, Nanostart and MagForce are in active dialogue with
relevant partners in order to maximize the financial potential of the company.