UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
June 10, 2015 (June 9, 2015)
Date of Report (Date of earliest event reported)
MEDGENICS, INC.
(Exact name of registrant as specified in its charter)
Delaware |
1-35112 |
98-0217544 |
(State or other jurisdiction of
incorporation or organization) |
(Commission File Number) |
(I.R.S. Employer
Identification No.) |
435 Devon Park Drive, Building 700
Wayne, PA 19087
(Address of principal executive offices,
zip code)
(610) 254-4201
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2. below):
¨ Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act (17 CFR 240.13e-4(c))
| Item 5.02. | Departure of Directors or Certain Officers; Election
of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
On June 9, 2015, the Board of Directors
of Medgenics, Inc., a Delaware corporation (the “Company”), elected Barbara G. Duncan to fill one of its vacant directorships,
effective July 22, 2015.
In connection with Ms. Duncan’s election
as a Director, the Compensation Committee of the Company’s Board of Directors recommended, and the Board of Directors approved,
effective July 22, 2015, the grant to Ms. Duncan of stock options to purchase 40,000 shares of the Company’s common stock,
$0.0001 par value per share (“Common Stock”), at a per share exercise price that will equal the closing price of the
Common Stock on the NYSE MKT on July 22, 2015, under the Company’s Stock Incentive Plan. The options will vest in three equal
installments on each of the first, second, and third anniversaries of the effective date of Ms. Duncan’s election, subject
to her continued service through each vesting date. The options have a 10-year term.
In addition, as of June 9, 2015, the Company
and Ms. Duncan entered into a non-executive director appointment letter agreement setting forth, among other things, Ms. Duncan’s
duties as a director. Pursuant to the agreement, Ms. Duncan will be entitled to the same cash fees for her services
as a director as the other non-executive directors of the Company. Ms. Duncan also agreed to maintain the confidentiality of all
confidential business information, to disclose conflicts of interest to the Company and not to compete or solicit certain employees
or other parties with which the Company does business for a period ending twelve months following the termination of her directorship.
The foregoing description of the non-executive
director appointment letter agreement is qualified in its entirety by reference to such agreement, a copy of which is filed as
Exhibit 10.1 to this Form 8-K and incorporated by reference herein.
| Item
7.01 | Regulation
FD Disclosure. |
Attached hereto as Exhibit 99.1 is a copy
of the Company’s press release, dated June 10, 2015, regarding the election of Ms. Duncan.
The information furnished in this report
under this Item 7.01, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18
of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act
of 1933, except as shall be expressly set forth by specific reference in such a filing.
| Item
9.01 | Financial
Statements and Exhibits. |
| (d) | Exhibits. The following exhibit is furnished herewith: |
Exhibit No. |
Description |
|
|
10.1 |
Non-Executive Director Appointment Letter, dated as of May 21, 2015, between Medgenics, Inc. and Barbara G. Duncan |
|
|
99.1 |
Medgenics, Inc. Press Release dated June 10, 2015 (furnished pursuant to Item 7.01). |
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
MEDGENICS, INC. |
|
|
|
|
|
By: |
/s/ Scott Applebaum |
|
|
Name: Scott Applebaum Title: Chief Legal Officer |
Date: June 10, 2015
Exhibit 10.1
Barbara G. Duncan
May 21, 2015
RE: Medgenics, Inc. (the “Company”)
Dear Barbara,
I am writing to you on behalf of the board of directors of the
Company to confirm arrangements with regard to the terms of appointment to office as a director of the Company from the date of
this letter.
For the purposes of this Letter, the following words or expressions
shall have the following meanings respectively:
| “Board” | means the board of directors of the Company,
including any committee of the Board duly constituted by it; |
| (a) | the business of the research, development, design, production,
manufacturing, marketing, sale, distribution and other commercial activities of any Group Company in relation to the Group’s
proprietary and/or licensed technology concerning a platform technology for the treatment of various diseases and/or chronic disorders
and conditions whereby a sliver of human dermal tissue is converted into an internal protein production plant, through ex vivo
transduction with a viral or non-viral vector, and the processed tissue is re-implanted under the human donor’s skin
to provide therapeutic levels of protein delivery; and |
| (b) | any other business that any Group Company shall at the relevant date; |
| (i) | be engaged in and with which you shall have been concerned or involved to any material extent at any time during Your Appointment;
or |
| (ii) | have determined to carry on with a view to developing any other biotechnical technology for commercial exploitation in the
future and in relation to which determination you shall at the Termination Date possess any material Confidential Business Information; |
| “Confidential Business” | means all and any Corporate
Information, Marketing Information, |
| “Information” | Technical Information and other information
(whether or not recorded in documentary form or on computer disk or tape) which the Company or any Group Company treats as confidential
or in respect of which it owes an obligation of confidentiality to any third party, which is not in the public domain: |
| (a) | which you shall have acquired or shall hereafter acquire at any time during Your Appointment but which does not form part of
your own stock in trade; and |
| (b) | which is not readily ascertainable to persons not connected with the Company or any Group Company; |
| “Corporate Information” | means all and any information (whether
or not recorded in documentary form or on computer disk or tape) relating to the business methods, corporate plans, management
systems, finances, maturing new business opportunities or research and development projects of the Company or any Group Company; |
| “DGCL” | means Delaware General Corporation Law; |
| “Group” | means the Company and its affiliates,
including any company that controls, is controlled by, or is under common control with the Company, as defined in Rule 3b-18 of
the Securities Exchange Act of 1934, as amended from time to time, including, without limitation to the generality of the foregoing,
Medgenics Medical (Israel) Limited; |
| “Group Company” | means a member of the Group and “Group
Companies” shall be interpreted accordingly; |
| “Marketing Information” | means all and any information (whether
or not recorded in documentary form or on computer disk or tape) relating to the marketing or sales of any past present or future
product or service of the Company or any Group Company including, without limitation, sales targets and statistics, market share
and pricing statistics, marketing surveys and plans, market research reports, sales techniques, price lists, discount structures,
advertising and promotional material, the names, addresses, telephone numbers, contact names and identities of customers and potential
customers of and suppliers and potential suppliers to the Company or any Group Company, the nature of their business operations,
their requirements for any product or service sold to or purchased by the Company or any Group Company and all confidential aspects
of their business relationship with the Company or any Group Company; |
| “Material Interest” | means: |
| (a) | the holding of any position as director, officer, employee, consultant, partner, principal or agent; |
| (b) | the direct or indirect control or ownership (whether jointly or alone) of any shares (or any voting rights attached to them)
or debentures save for the ownership for investment purposes only of not more than five percent (5%) of the issued shares of any
company whose shares are listed on any national securities exchange (as defined in Section 3(a)(1) of the Securities Exchange Act
of 1934, as amended from time to time), or any similar exchange in jurisdictions outside the United States, including AIM; or |
| (c) | the direct or indirect provision of any finance; |
other
than on behalf of any Group Company for the legitimate purposes of that Group Company;
| “Technical Information” | means all and any trade secrets, secret
formulae, processes, inventions, designs, know-how discoveries, technical specifications and other technical information (whether
or not recorded in documentary form or on computer disk or tape) relating to the creation, production or supply of any past, present
or future product or service of the Company or any Group Company; |
| “Termination Date” | means the date of the termination of Your
Appointment; and |
| “Your Appointment” | means your appointment to and holding
of office as a director of the Company as confirmed by this letter. |
| 2.1 | As a director of the Company you will be expected to exercise
the general fiduciary duties and duties of care and loyalty as provided under the DGCL and provide such advice and services as
the Board may reasonably require. |
| 2.2 | The Board as a whole is collectively responsible for the
success of the Company. The Board’s role is to: |
| 2.2.1 | provide entrepreneurial leadership of the Company within
a framework of prudent and effective controls, which enable risk to be assessed and managed; |
| 2.2.2 | set the Group’s strategic aims, ensure that the
necessary financial and human resources are in place for the Company to meet its objectives and review management performance;
and |
| 2.2.3 | set the Company’s values and standards and ensure
that its obligations to its shareholders and others are understood and met. |
| 2.3 | In your role as a non-executive director, you shall be
required to: |
| 2.3.1 | constructively challenge and contribute to the development
of the Group’s strategy; |
| 2.3.2 | scrutinize the performance of management in meeting
agreed goals and objectives and monitor the reporting of performance; |
| 2.3.3 | satisfy yourself that financial information is accurate
and that financial controls and systems of risk management are appropriate, robust and defensible; |
| 2.3.4 | endeavor to attend all meetings of the Board and the
annual and all other meetings of the shareholders of the Company; |
| 2.3.5 | at all times comply with the certificate of incorporation
and bylaws of the Company, each as the same may be amended or restated from time to time; |
| 2.3.6 | abide by your fiduciary duties as a director of the
Company; |
| 2.3.7 | diligently perform your duties; |
| 2.3.8 | immediately report your own wrongdoing or the wrongdoing
or proposed wrongdoing of any other employee or director of the Company of which you become aware to the Chairman of the Company;
and |
| 2.3.9 | comply with the terms of the Code of Business Conduct
and Ethics adopted by the Board (a copy of which is annexed hereto) and any other code of practice issued by the Company from
time to time relating to dealing in the Company’s securities. |
| 2.4 | In addition, your duties shall require that you shall: |
| 2.4.1 | promote the highest standards of integrity, probity
and corporate governance throughout the Company, particularly at Board level; |
| 2.4.2 | use your best endeavors to ensure that the Board receives
accurate, timely and clear information; |
| 2.4.3 | use your best endeavors to ensure effective communication
with shareholders; |
| 2.4.4 | use your best endeavors to facilitate the effective
contribution of non-executive directors and to ensure constructive relations are maintained between the executive and non-executive
directors; |
| 2.4.5 | ensure that the performance of the Chief Executive Officer
(and of any other executive director(s) from time to time) is evaluated at least once a year; and |
| 2.4.6 | at the request of the Company, serve on committees of
the Board as shall be agreed between you and the Chairman of the Company. |
You shall work such hours per week over the term Your Appointment
as are necessary for the proper performance of your duties as a non-executive director of the Company.
You will be entitled to certain cash fees in connection with
your services as set forth below:
i. |
Annual retainer fee |
$ 25,000 |
ii. |
Annual retainer fee for director acting as Chairman of Audit committee, if so appointed |
$ 15,000 |
The annual retainer fees are paid on a fiscal year basis and
shall be prorated for any partial year of Board service. The fees and the terms prescribing the frequency of payment are subject
to change upon the determined of the Compensation Committee of the Board. On termination of your Appointment you will (if applicable)
be paid your director’s fee on a pro-rata basis, to the extent unpaid up to the Termination Date.
You will receive stock options to acquire 40,000 shares of common
stock upon Your Appointment. Such options will be issued under the Company’s Stock Incentive Plan, as amended (the “Stock
Plan”), and will vest in three equal installments, with the first 13,333 options vesting upon the first anniversary of the
effective date of Your Appointment, the second 13,333 options vesting on second anniversary of the effective date of Your Appointment
and the remaining options vesting on the third anniversary of the effective date of Your Appointment, subject in each case to your
continued service as a director of the Company. You will be entitled to participate in any equity compensation program established
for non-executive directors beginning in 2016. Currently, the Company has established a plan to make annual option grants under
the Stock Plan to be made immediately following the Company’s dissemination of its first or second quarter financial results
(such timing subject to the Compensation Committee’s discretion) of options to purchase 20,000 shares, having a 10 year term
and vesting 100% on the first anniversary of the grant. You acknowledge that the Company may determine to change this equity compensation
program and this Letter shall in no way be deemed to be a guarantee of future option grants. You will also be subject to the director’s
stock ownership guideline, which requires each director to own Company stock equal to no less than $75,000, and you will be given
up to five years from the effective date of Your Appointment to reach this threshold; stock options do not count towards this guideline.
Your Appointment will commence on July 22, 2015 and shall continue
unless or until your successor is elected and qualified or until your earlier resignation or removal. You agree that you will give
not less than sixty (60) days’ (or such lesser period if agreed by the Board) prior notice in writing to the Company in the
event you wish to resign prior to the expiration of your term or in the event you do not wish to stand for re-election at the Company’s
annual meeting of stockholders.
For the avoidance of doubt, by your counter-signature hereto,
you acknowledge that your continuation in office is subject to the DGCL and the certificate of incorporation and bylaws of the
Company, each as the same may be amended or restated from time to time.
On termination of Your Appointment for whatever reason you will
promptly return to the Company all documents, records, keys, correspondence or other items in your possession or under your control
which relate in any way to the business or affairs of, or are the property of, the Company or any Group Company and all copies
thereof, regardless of the medium upon or in which such copies are stored or held. In addition, you will cease to use the Company’s
facilities and cease to hold yourself out as being a director of the Company.
The Company shall reimburse you in respect of all reasonable
travelling, hotel, entertainment and other out of pocket expenses properly and necessarily incurred by you in or about the performance
of your duties under this Agreement, subject to the production (if requested) of any receipts, vouchers and other supporting documentation
that the Company shall reasonably require.
| 7.1 | Both during the currency and after the Termination Date,
you will treat all Confidential Business Information as confidential and not use or disclose the same to any other party except: |
| 7.1.1 | insofar as may be necessary for the proper and effective
performance of your duties as a director of the Company and then only to a person who shall be subject to equivalent, express,
written confidentiality obligations to the Company or a Group Company; |
| 7.1.2 | to the extent that such information is or (without default
of your part) becomes generally available to the public; or |
| 7.1.3 | to the extent that you shall be required to disclose
the same by any applicable law or legally binding order of any court, government, semi-governmental authority, administrative
or judicial body, or a legally binding requirement of a stock exchange or regulator. |
| 7.2 | If you are required to make a disclosure as contemplated
in clause 7.1.3: |
| 7.2.1 | you must disclose only the minimum Confidential
Business Information required to comply with the applicable law, order or requirement; and |
| 7.2.2 | before making such disclosure, you must: |
| (a) | give the Company reasonable written notice of: |
| (i) | the full circumstances of the requirement for disclosure
arising; and |
| (ii) | the Confidential Business Information which you propose to disclose; and |
| (b) | consult with the Company as to the form of the disclosure. |
| 7.3 | By your counter-signature hereto, you acknowledge that: |
| 7.3.1 | the Company and each Group Company possess a valuable
body of Confidential Business Information; |
| 7.3.2 | the Company has given and will continue to give you
access to Confidential Business Information in order that you may carry out your duties hereunder; |
| 7.3.3 | your duties include, without limitation, a duty of care
and a duty of loyalty as provided under the DGCL; and |
| 7.3.4 | the disclosure of any Confidential Business Information
other than for the legitimate business purposes of the Company or any Group Company, including (without limitation) to an actual
or potential competitor of the Company or any Group Company could place such company at a serious competitive disadvantage and
could cause immeasurable (financial and other) damage to the Businesses |
and
that the obligations of confidentiality assumed under the provisions of this clause 7 are reasonable and necessary for the protection
of the Group, the Businesses and the Confidential Business Information.
| 8 | Other Interests and Restrictions |
| 8.1 | It is accepted and acknowledged that you have business
interests other than those of the Company and that you have declared any potential conflicts that are apparent at present. If
you become aware of any potential conflicts of interest after the date hereof, these should be disclosed to the Chairman of the
Company and company secretary as soon as you become aware thereof. |
| 8.2 | By your counter-signature hereto, you agree and undertake
that, during the term of Your Appointment, you shall not, without the Company’s written permission, assume or hold any Material
Interest in any person, firm or company which: |
| 8.2.1 | impairs or might reasonably be thought by the Board
to impair your ability to act at all times in the best interests of the Company; or |
| 8.2.2 | requires or might reasonably be thought by the Board
to require you to disclose any Confidential Business Information in order properly to discharge your duties to or to further your
interest in such person, firm or company. |
| 8.3 | By your counter-signature hereto, you agree and undertake
that you will not, without the Company’s written permission, during the term of Your Appointment and for the period of 12
months after the Termination Date, in any part of the world, whether directly or indirectly: |
| 8.3.1 | assume or hold a Material Interest in a business that
directly competes with the Company’s business at such time; |
| 8.3.2 | solicit, or by any other means induce or seek to induce,
any person, firm or company with whom or which any Group Company transacts business (whether as customer, supplier, contractor,
licensor, adviser or otherwise in relation to the Business) to cease dealing with such Group Company or to restrict or vary the
terms upon which it deals with such Group Company; and |
| 8.3.3 | solicit or entice away or employ or engage or seek to
entice away from any Group Company any person who is and was at the Termination Date or at any time during the six (6) months
prior to the Termination Date a director, scientific adviser, regulatory adviser, bioscience engineer or other scientific, program,
product development, marketing, sales, licensing, research and development and/or other senior manager, key salesperson or secretary
(if any) assigned to you. |
| 8.4 | By your counter-signature hereto, you agree and undertake
that you will not at any time after the Termination Date, represent or hold yourself out or permit yourself to be represented
or held out by any person, firm or company as being in any way then currently connected with or interested in the Company or any
Group Company other than (if such be the case) as the holder of shares, options and/or warrants in the Company. |
| 8.5 | Each of the provisions of clauses 8.2, 8.3 and 8.4 and
(where applicable) the sub-clauses thereof is independent and severable from the remaining provisions and enforceable accordingly.
If any provision of the said clauses/sub-clauses shall be unenforceable for any reason but would be enforceable if part of the
wording thereof were deleted, it shall apply with such deletions as may be necessary to make it enforceable. |
| 8.6 | You have given the undertakings contained in this clause
8 to the Company itself and to the Company as trustee for the benefit of each Group Company and will, at the request and cost
of the Company, promptly enter into direct undertakings with any Group Company which correspond to the undertakings in this clause
8. |
| 8.7 | The Company agrees that each Material Interest that you
assume or hold as of the date hereof is hereby permitted. |
| 9 | Independent Legal Advice |
Occasions may arise when you consider that
you will need professional advice in connection with the performance of your duties as a director of the Company and you will be
able to consult the Company’s advisors for this purpose. Exceptional circumstances may occur when it may be appropriate for
you to seek such advice from independent advisors, at the Company’s expense. In such an event, you should, where reasonably
practical and not (in your reasonable judgment) prejudicial to the interests of the Company, consult with the Board or, if you
consider appropriate, the non-executive directors, prior to such advice being sought or expense being incurred.
| 10 | Governing law and jurisdiction |
This Letter shall be governed by and shall be interpreted in
accordance with the DGCL. The parties irrevocably submit to the non-exclusive jurisdiction of the state courts of Delaware, USA
in relation to all matters arising out of or in connection with this appointment letter.
On a more personal note, I want to tell you how pleased I am
that you are joining the Medgenics Board of Directors. I know that I speak for the other directors in saying that we look forward
to your leadership and contributions as a director. I would greatly appreciate if you would confirm your acceptance of the terms
of your appointment by signing and returning this Letter.
With kind regards,
/s/ Sol J. Barer
Sol J. Barer, Ph.D.
Duly authorized for and on behalf of the Board
I hereby acknowledge the above terms and agree and undertake
in the above terms.
/s/ Barbara G. Duncan
Barbara G. Duncan
June 9, 2015
Date
Exhibit 99.1
NEWS RELEASE |
|
Medgenics Announces Appointment
of Barbara Duncan to Board of Directors
PHILADELPHIA, PA (June 10, 2015) –
Medgenics, Inc. (NYSE MKT: MDGN), the developer of a proprietary platform for the sustained production and delivery of therapeutic
proteins and peptides in patients using ex vivo gene therapy and their own tissue for the treatment of rare and orphan diseases,
today announced the appointment of Barbara Duncan to the Company’s Board of Directors effective July 22, 2015.
“We are very excited to welcome Barbara
to our Board of Directors. She has proven to be an effective leader in helping companies successfully execute through operational
and strategic plans and we believe that this, coupled with her financial expertise, will be extremely valuable to Medgenics,”
commented Sol Barer, Chairman of the Board of Medgenics.
Ms. Duncan has served as Chief Financial
Officer and Treasurer at Intercept Pharmaceuticals, Inc. since May 2009. She previously served in a series of positions with increasing
responsibilities at DOV Pharmaceuticals, Inc. including as Chief Executive Officer and Treasurer. Before that, she served as Vice
President of Corporate Finance – Global Healthcare at Lehman Brothers Inc. and Director of Corporate Finance at SBC Warburg
Dillon Read Inc. Ms. Duncan holds a Master of Business Administration from the Wharton School of the University of Pennsylvania
and a Bachelor of Business Administration from Louisiana State University.
About Medgenics, Inc.
Medgenics is developing the TARGT™
(Transduced Autologous Restorative Gene Therapy) system, a proprietary platform for the sustained production and delivery of therapeutic
proteins and peptides using ex vivo gene therapy and the patient’s own tissue for the treatment of orphan and rare diseases.
For more information, visit the Company’s website at www.medgenics.com.
Forward-looking Statements
This release contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and as that
term is defined in the Private Securities Litigation Reform Act of 1995, which include all statements other than statements of
historical fact, including (without limitation) those regarding the Company’s financial position, its development and business
strategy, its product candidates and the plans and objectives of management for future operations. The Company intends that such
forward-looking statements be subject to the safe harbors created by such laws. Forward-looking statements are sometimes identified
by their use of the terms and phrases such as “estimate,” “project,” “intend,” “forecast,”
“anticipate,” “plan,” “planning, “expect,” “believe,” “will,” “will
likely,” “should,” “could,” “would,” “may” or the negative of such terms and other
comparable terminology. All such forward-looking statements are based on current expectations and are subject to risks and uncertainties.
Should any of these risks or uncertainties materialize, or should any of the Company’s assumptions prove incorrect, actual results
may differ materially from those included within these forward-looking statements. Accordingly, no undue reliance should be placed
on these forward-looking statements, which speak only as of the date made. The Company expressly disclaims any obligation or undertaking
to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s
expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. As
a result of these factors, the events described in the forward-looking statements contained in this release may not occur.
Contacts:
Medgenics, Inc.
John Leaman
john.leaman@medgenics.com
Brian Piper
Brian.piper@medgenics.com
Stern Investor Relations
Beth DelGiacco
212-362-1200
Beth@sternir.com
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