ONWARD Medical raises EUR 50 Million in an upsized capital increase

ONWARD Medical, focussing on innovative spinal cord stimulation therapies to restore movement, function, and independence in people with spinal cord injury, raised EUR 50 million through a private placement with institutional investors. The New Shares were offered at an issue price of EUR 5.00 per share. The capital increase was upsized to EUR 50M on the basis of strong demand from high-quality long-only and sector specialist investors. The net proceeds from the Private Placement are expected to provide the Company with cash runway for at least two years.

In connection with the Private Placement, Ottobock SE & Co. KGaA (“Ottobock”), as a cornerstone investor, has entered into a cornerstone investor agreement with the Company and agreed to subscribe for New Shares for an aggregate consideration of EUR 22.5 million or as near as possible to such amount excluding the issuance of fractional shares.

The agreement also provides for ONWARD and Ottobock, a world leader in prosthetics, orthotics, mobility solutions, and exoskeletons, to enter into potential development and/or commercial collaboration agreements after conclusion of the Private Placement in order to govern a long-term partnership between both parties. Ottobock’s investment with the Company highlights the potential synergies in providing innovative solutions for people with SCI and other movement disabilities.

“We are thrilled to welcome Ottobock as a strategic investor and partner. They are a global leader in developing innovative solutions for the shared communities we are working to serve, in particular those with spinal cord injuries and movement disabilities,” said Dave Marver, CEO of ONWARD Medical. “We look forward to exploring opportunities to collaborate closely with Ottobock across our range of business activities, with the intent to enhance and accelerate our ability to develop and commercialize our breakthrough therapies worldwide.”

“Ottobock has been driving people’s mobility for more than 100 years. ONWARD Medical has the potential to become a gamechanger in the therapy of spinal cord injuries with its innovative solutions. As the innovation leader in our industry, we are looking for exactly these breakthrough approaches to successfully combine them with our expertise and products to drive our mission forward and offer our users the best possible options for a self-determined life. Our investment in ONWARD is an investment in the future of medical technology,” said Professor Hans Georg Näder, Chairman of the Board and owner of Ottobock SE & Co. KGaA.

For more than 100 years, Ottobock has been developing innovative fitting solutions for people with reduced mobility. Today the company has more than 9,000 employees with products being used in 135 countries.

ONWARD currently envisions using the net proceeds of the Private Placement to:

• Fund research & development activities, including continued product development, clinical studies and regulatory activities for the investigational ARC-EX System to restore hand and arm function, the investigational ARC-IM System for improved blood pressure regulation after SCI and other exploratory indications, and the investigational ARC-BCI System to restore thought-driven movement of the human body after SCI (40%);

• Support the expected commercial launch of the ARC-EX System in the United States in the coming months, including hiring a field sales organization and conducting selling activities, producing training and education materials and conducting training events, attending congresses, developing customer support capabilities and conducting customer support activities, and conducting market access and reimbursement activities (30%);

• Build quality, operations, and administrative capabilities (20%);

• Fund working capital requirements and potential strategic opportunities, aimed at establishing, maintaining, or strengthening competitive advantage through license arrangements, acquisitions whether by assets or shares, or other arrangements (partnering or otherwise) (5%); and

• Cover financing costs associated with existing obligations under current and anticipated debt funding (5%).