Medgenics Announces Closing Of Public Offering Of Common Stock And Warrants

Medgenics, Inc. (NYSE MKT: MDGN and AIM: MEDU, MEDG) (the “Company” or “Medgenics”), the developer of a novel platform technology for the sustained production and delivery of therapeutic proteins in patients using their own tissue, announces yesterday’s closing of an underwritten public offering of 5,600,000 shares of common stock and Series 2013-A warrants to purchase up to an aggregate of 2,800,000 shares of common stock. The shares and the warrants were sold together as a fixed combination, each consisting of one share of common stock and a warrant to purchase one-half of a share of common stock, at a price to the public of $5.25 per fixed combination. The shares of common stock and warrants were issued separately. The warrants have an initial exercise price of $6.78, are currently exercisable and will expire on February 13, 2018.

Gross proceeds to Medgenics were $29,400,000, before deducting underwriting discounts and commissions and other offering expenses payable by Medgenics. In addition, Medgenics granted the underwriters a 45-day option to purchase up to an aggregate of 840,000 additional shares of common stock and/or additional warrants to purchase up to an aggregate of 420,000 shares of common stock.

Maxim Group LLC acted as sole book-running manager for the offering. National Securities Corporation and MLV & Co. acted as co-managers for the offering. Nomura Code Securities Limited and SVS Securities Plc acted as sub-agents to the offering in Europe.

The securities described above were sold by means of the Company’s existing shelf registration statement on Form S-3, a prospectus and related prospectus supplement, all as filed with the Securities and Exchange Commission (the “SEC”). Copies of such documents are available, on the SEC's website at http://www.sec.gov, and, in addition, may be obtained from Maxim Group LLC, Equity Syndicate Prospectus Department, 405 Lexington Avenue, 2 nd Floor, New York, NY, 10022, or by telephone at 1-212-895-3745, or by email at syndicate@maximgrp.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

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