Press release from Companies

Publicerat: 2010-09-23 09:21:01

MedicPen AB: Global Emerging Markets (GEM) invests in MedicPen AB

Global Emerging Markets Group (GEM) commits to invest at least 10,000,000 SEK in MedicPen AB, with an option to buy an additional one million shares at a strike price of 3.50 SEK. If the options are executed the total value of the agreement is up to 13,500,000 SEK.

The funds are made available to MedicPen AB in the form of an equity line of credit over the next three years. Under this agreement GEM has committed to subscribe for new shares In MedicPen AB for up to 10,000,000 SEK. The equity line of credit is structured to issue shares in MedicPen AB on multiple occasions to optimize the effect of the cash injections and to minimize shareholder dilution. The subscribed price per share will vary depending on the time when MedicPen AB chooses to use the equity line of credit. Shares will be issued to GEM at a 10 % discount of the 15 day volume weighted average price of the MedicPen shares preceding the closing of each Draw Down. In addition, MedicPen AB will issue GEM options for one million shares with a strike price of SEK 3.50 per share. The options will have a three year term. The options will be subject to shareholders' approval in an extraordinary shareholders meeting to be held in October. Global Emerging Markets Limited,, was founded in 1991. GEM is a $3.4b investment group having completed 285 transactions in 60 countries. The firm is an alternative investment group that manages a diverse set of investment vehicles across the world. GEM's funds include: CITIC/GEM Fund; VC Bank/GEM Mena Fund; Kinderhook; GEM Global Yield Fund; GEM India and Banco Pine/GEM Funds. MedicPen AB is a medtech company that produces patented computerized medicine dispensers. The dispensers are handheld and are devices for medication in the form of tablets. The MedicPen products enhance compliance significantly and have received a lot of interest from the medical establishment. Cristian Hallin CEO of MedicPen AB said that the company's financial position is now stable with the GEM equity line of credit in place, and that this injection of cash flow will support the execution of MedicPen`s strong sales and marketing plans. "I´m very satisfied that we have secured this substantial new funding from a top quality partner, who is well aware of the potential for the MedicPen compliance products. In fact to illustrate the size of the market, in 2009, the New England Healthcare Institute estimated that poor compliance with medication is responsible for $290 billion per year in "otherwise avoidable medical spending in the US" ". "Last but not least is the very important signal that the GEM facility will provide in reassuring our business partners that MedicPen will be able to meet its commitments as a counterpart. This agreement will definitely help accelerating ongoing negotiations." Says Mr. Hallin. Contacts Cristian Hallin, CEO - Warren P. Baker, III - - The Global Emerging Markets Group (GEM)

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