Notification that Medicalgorithmics US Holding Corporation will receive 3,0 mUSD of the IRS Tax Refund Amount from Medi-Lynx on or before January 13, 2023
Current report no.: 1/2023
Legal basis: Article 17.1 MAR – confidential information
Management Board of Medicalgorithmics S.A. headquarted in Warsaw (hereinafter the “Company”) with reference to the Company’s report no. 47/2022 and 52/2022, announces that on January 6th, 2023, was notified that Medi-Lynx Cardiac Monitoring (hereinafter “Medi-Lynx”) had received the IRS tax refund (as referred to in report no. 47/2022). Accordingly, Medi-Lynx will remit 3.0 mUSD (65% of the tax refund amount less the cost of obtaining it) to the Medicalgorithmics US Holding Corporation on or before January 13, 2023. That payment was secured with a payment guarantee provided by React Health. The amount when received will be booked as an increase of the price of Medi-Lynx disposal.
In the opinion of the Management Board the Company prior to receiving that notification already had sufficient funds to execute on its short and mid-term goals. Its future financial stability and liquidity was already well secured after receiving cash capital increase of PLN 13.8 mPLN and a commitment to provide further financing up to PLN 13.8 mPLN within 36 months if needed from its major shareholder Biofund Capital Management LLC (hereinafter “Biofund”) as referred to in a report no. 55/2022 and 72/2022 regarding the Biofund Investment Agreement and Investment Presentation.
The tax refund amount was not included in Company’s financial plan, and it will additionally significantly increase cash reserves to nearly 39 mPLN.
Therefore, the increased funds held by the Company will allow the Company to accelerate the implementation of the Strategic Initiatives outlined in the Presentation of Biofund investment in Medicalgorithmics published in the current report no. 58/2022, especially executing on the new technology roadmap. It will also accelerate long-term sales growth in the US and Global (OUS) markets as per the current report no. 72/2022.