Medical technology company MagForce is planning to raise approximately €33.5m as part of its restructuring plan to safeguard its long-term existence.

Under the restructuring plan approved the company’s Supervisory Board, MagForce’s share capital is to be increased by up to €18.6m by granting preemptive rights to shareholders against cash and noncash contributions.

As part of the capital increase, some of the company’s creditors are also to be granted the right to subscribe for new shares at an issue price of €1.80 per share against noncash contributions to the extent that shareholders’ preemptive rights are disapplied for shares counting as fractions have not been exercised following the expiration of the subscription period for all shareholders, but only up to a maximum of 8,933,643 new shares.

The rights will not be traded on the stock exchange, claims the company.

The company will use part of the cash funds to finance the post-marketing glioblastoma study, in the short to medium term.

In addition to use of the capital in the operating business, the company also plans to repay loans in the amount of €16.1m to its primary creditors, who have agreed to convert their loans to equity as part of a noncash capital increase.

MagForce expects to win the General Shareholders’ Meeting’s approval on 25 January 2013.