Mimetis

Idea

Introduction

Mimetis designs, manufactures and commercialises bone regenerative solutions in the dental and orthopaedic fields.

The company was incorporated in 2013 as a spin-off of the Technical University of Catalonia, Barcelona, with Dr.Ginebra as the spearhead and acting President.

Mimetis uses biomimicry as its technological inspiration, synthetically manufacturing a bone graft that closely mimics the natural bone of the patient in order to regenerate it physiologically.

As of today, Mimetis is up and running with its own manufacturing line, increasing sales revenues and an experienced team onboard.

The company is now:

- Expanding its portfolio of bone regenerative solutions with a unique 3D Printing technology for patient-specific implants.
- Growing commercially towards orthopaedics and additional territories.

Convertible Details

This investment round is being raised by way of a convertible instrument. The key terms that apply to the Mimetis convertible are as follows:

• Discount – conversion at a 20% discount to the valuation set by a Trigger Event.

• This convertible has a valuation cap of €10m. Please note that the discount does not apply to the valuation cap. If the Trigger Event is at a valuation of more than €10m, then the convertible will convert at the lower of:
- the price set by the Trigger Event less the 20% discount; and
- a valuation of €10m.

• Conversion is triggered by the follow Trigger Events:

o An Equity Fundraise – defined as the Company raising investment capital of at least €800,000 from one transaction or a series of transactions, in exchange for the company issuing equity Shares. The Seedrs fundraise does not count as a transaction.

o A Change of Control of the company (transfer of more than 50% of the share capital); or

o An IPO – being a listing of the company’s shares on a recognised stock market or secondary market.

• The Longstop Date is 12 months from the date of the convertible agreement. If conversion has not been triggered by the Longstop Date shares will be issued on the Longstop Date at a valuation based on the lower of:
(i) the lowest price of any Equity Share issued after the date of this Agreement; and
(ii) a pre-money company valuation of €3,666,985 on a fully diluted basis (this is based on the valuation of Mimetis' last funding round).

The convertible would also convert to equity at this price in the event of winding up or liquidation of the company.

Intended impact

Global ageing is a clear trend and is linked to a growing need for bone regenerating solutions. In the dental field, bones need to be regenerated or replaced before placing a dental implant. In the orthopaedics field, bone grafting is used in spinal fusion procedures.

The existing solutions have limitations such as:
• Ethics: Animal- or human-derived bone grafting solutions raise major ethical, cultural or religious issues.
• Efficacy: The existing solutions are biomaterials for bone filling instead of temporal tools for physiological bone regeneration.
• Anatomy: Existing solutions do not allow implantation of biomimetic patient-specific bone regenerative solutions

Mimetis serves the unmet needs developing and marketing the latest generation of bone regenerative solutions. This pursues a triple aim (better care, better health, lower cost), and the medical providers’ specific objectives around quality, safety and cost.

Here is some educational content for patients on how bone grafts work:

Substantial accomplishments to date

To date, Mimetis reached the following milestones:

• Technological background
- A team with the benefit of 15 years of academic research into the workings and discovery of biomedical engineering.

- Regulatory approvals for Europe have been received (CE, ISO13485). To our knowledge this is the first biomimetic product in the market.

• Product & Commercial traction
- Our view is that the existing synthetic solutions may solve ethical concerns but lack clinical efficacy. Mimetis’ aim is to use innovative biomimetic technology to provide patients with ethical, synthetically sourced, clinically-efficient bone regenerative solution.

- A patient-specific, biomimetic 3D-printed bone regenerative solutions for complex cases: MimetikOss 3D.

- Global option agreement in the dental field

- National increasing sales year on year

- 200k in Sales (Product & Services).

• Financials/Corporate
- €800k of funding from founders and strategic investors

- €1M of grants from the European and Spanish institutions.

- €128k accumulated tax credit.

- Dr.Maria Pau Ginebra was a finalist of the Women Innovator Prize organized by the European Union 2018.

Monetisation strategy

Mimetis Biomaterials designs, manufactures and commercializes bone regenerative solutions. MimetikOss Granules' design is based on biomimicry to regenerate bone. The product is available in European markets. The company manufactures the granules using a proprietary trade secret in an ISO7 cleanroom at its manufacturing site based in the outskirts of Barcelona, Spain. Also, it owns a customised 3D-printing set of machines to print personalised bone grafts.

The company’s sources of revenue are:
> Direct sales in dental and orthopaedics (Spain)
> Sales through sales representatives (Dental, Spain)
> Sales through distribution agreements (Orthopaedics, Spain)
> Upcoming option agreement in place (Confidential)
> Services provided to dental implant companies

Use of proceeds

The funds gathered support the first step taken towards a larger investment 2019. It will help us to reach key objectives such as:

> The 1st human case using 3D-printed biomimetic technology
> Intermediate results of the ongoing randomized clinical trials
> Potential execution of a global option to exclusive distribution in the dental field
> Initial orthopaedic market entry
> Packaging update to match orthopedics needs

All the aforementioned items are high-value areas for the company. The 6th activity of the Company during this time span is the preparation of this Series A investment round.

Subsequently, the amount raised in the campaign would allow for continuing development of the company. Mimetis have two soft bank loans of €100k each. The loans will be fully reimbursed Q2 2019 but this fundraising round will not be used to pay back these loans.