ONCOCLÍNICAS APPROVES R$ 1.5 BILLION CAPITAL INCREASE

May 24, 2024 10:41 AM NZST | By Cision
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 ONCOCLÍNICAS APPROVES R$ 1.5 BILLION CAPITAL INCREASE
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Operation aims to strengthen the Company's financial position and maintain growth strategy

SAO PAULO, May 24, 2024 /PRNewswire/ -- Oncoclínicas&Co (B3: ONCO3), a leading oncology company headquartered in Latin America, has announced that the enterprise has approved a capital increase of R$ 1.5 billion at a Board of Directors meeting held on May 22, 2024.

This capital increase complies with the ceiling established within the company's Articles of Association and does not require any statutory change. The capital increase will be carried out through the issuance of 115.4 million new registered ordinary shares with no par value.

With this issuance, Oncoclínicas&Co strengthens its capital structure, significantly reduces leverage, and increases liquidity to continue to provide better access to advanced oncology treatments to cancer patients, achieve economies of scale, and optimize the costs associated,

Investors of the Quíron Multi-Strategy Equity Investment Fund ("Quíron") and the Tessália Multi-Strategy Equity Investment Fund ("Tessália"), investment vehicles anchored by Banco Master, entered into an investment agreement with the company and committed to subscribe up to R$ 1 billion of new shares, to be issued by Oncoclínicas&Co.

In addition, founding shareholder and CEO Bruno Lemos Ferrari announced his intention to subscribe up to R$ 500 million worth of new shares.

"The capital increase significantly strengthens our capital structure and makes us even better equipped to take advantage of future growth opportunities, while continuing to provide exceptional quality care with an acute focus on our patients and their families," emphasized Ferrari.

The terms of the capital increase provide for the issuance of new shares at a price of R$ 13.00 per share, representing a premium of 89% over the market value, based on a recent valuation by XP Finanças Assessoria Financeira Ltda. The funds raised will be used to reduce the company's consolidated debt, improve its cash position, maintain its growth strategy, continue its organic expansion plans, and for general corporate use.

Josephina Multi-Strategy Equity Investment Fund and Josephina II Multi-Strategy Equity Investment Fund (together the "FIPs"), investment vehicles of Goldman Sachs, have agreed to transfer their respective preferential rights to the investors of Quíron and Tessália as part of the capital increase.

Daniel Vorcaro, President of Banco Master, emphasized that "...Healthcare is one of the markets with the greatest growth potential in Brazil in the coming years, whether in the pharmaceutical industry, primary care or high value-added services, arenas where Oncoclínicas&Co occupies a prominent position in Latin America. Being part of a company that is revolutionizing access to oncology treatments in the country, alongside Goldman Sachs, is a great opportunity and indeed a privilege for our company to undertake."

According to João Padin, Vice President of Corporate Equity Investments at Goldman Sachs Asset Management, the transaction demonstrates the attractiveness and strength of Oncoclínicas&Co's business model.

"The funds raised are important for continuing the growth strategy and strengthening the Group's capital structure. In this way, Oncoclínicas&Co underlines the solidity of its business and its commitment to the quality of the services offered to patients," he added.

The notice to shareholders is available on the Investor Relations website of Oncoclínicas&Co, the CVM website and the B3 S.A. website.

Oncoclínicas&Co reaffirms its commitment to transparency and corporate governance and will keep its shareholders and the market informed of the next steps in this capital increase process.

Note To Editors:

Last year alone, the company carried out more than 600,000 procedures and has expanded its service capacity in recent years to meet the growing demand for cancer treatment. Forecasts from cancer institutes around the world and in Brazil point to a significant increase in the disease over the next two decades, mainly due to an aging population. In Brazil, the National Cancer Institute expects more than 700,000 new cases per year in the period 2023-2025.

For further information, visit http://www.grupooncoclinicas.com


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