Medicalgorithmics, a Warsaw Stock Exchange-listed developer of an innovative platform and AI algorithms for ECG analysis, has signed an addendum to its loan agreement with Biofund Capital Management. Under the amendment, the parties have agreed to convert the liabilities arising from the 2024 loan into shares in the company at a price of PLN 33 per share. The General Meeting of Shareholders will decide on the issue of shares, which will ultimately be used for the conversion. The signed amendment to the agreement represents significant progress in the process of converting the liabilities arising from the aforementioned loan, which was offered to the Company by the Biofund in January this year. At the same time, the fund signed a lock-up agreement, under which it undertook not to sell the Company’s shares until 20 January 2027.
– The fairness opinion obtained has shown that there are no obstacles to converting the 2024 loan into shares in the Company at a price of PLN 33. This is in the interests of the fund, the Company and its shareholders. Consequently, in accordance with the declaration made in January this year by Biofund, we have signed an addendum amending the terms of the loan in the Company’s favour and introducing a conversion obligation – comments Biofund co-founder and one of the pioneers of data mining, the renowned scientist Prof. Paul Lewicki – By deciding to convert the loan, we are effectively purchasing over 500,000 shares in the company at PLN 33 each and committing not to sell them until 20 January 2027. This is an expression of our belief in the company’s potential and a commitment to the other shareholders – he adds
At the same time, the amendment to the aforementioned loan introduces more favourable repayment terms. Among other things, it provides for the waiver of the right to a 3% commission on revenue from new customers and a reduction in the loan interest rate from 18.5% to 14%.
– Converting the loan into shares will provide the Company with significant relief. It will enable us to improve our balance sheet, as well as our future results and cash flows, particularly given our growth trajectory over the next two to three years – comments Michał Zapora, a member of the Board.
The signing of the addendum, and consequently the introduction of more favourable loan repayment terms and its conversion into shares, forms part of the offer made by Biofund to Medicalgorithmics in January this year.