MZ Solution "Decides Third-Party Allocation Rights Offering Following Selection for Investment-Linked National Project"

MGN Solution announced on the 20th that it has conducted a third-party allotment paid-in capital increase following its selection for an investment-linked government project.

The project title is “Development of a decellularized xenogeneic meniscus implant derived from heterologous tissue with over 30% improved mechanical strength and enhanced biomimicry compared to existing collagen implant products, resulting in improved cell-tissue affinity.”

The funding amount is approximately 900 million KRW, and according to the company, private investment is essential for this project. The third-party allotment recipient is Andover Asset Management Co., Ltd., which invested due to the technical value of the project and expectations for future clinical trials and product commercialization.

New common shares totaling 589,391 will be issued at 1,527 KRW per share. As of the separate financial statements for the first half of 2024, MGN Solution’s cash equivalents amount to approximately 9 billion KRW.

According to the company, this government project ranked first among companies applying for the material component technology development heterogenous technology convergence type project. Clinical trials for product commercialization are also planned after the project’s completion.

Meniscus damage is typically treated by surgery involving excision of the damaged meniscus and suturing of the injured area, but there is a high risk of developing degenerative arthritis in the long term. In the case of allogeneic transplantation, issues such as tissue size mismatch and supply shortages exist.

MGN Solution stated, “The currently developing biomimetic meniscus implant derived from xenogeneic tissue can solve these problems,” adding, “It provides effects structurally and functionally similar to the original meniscus and can be used as a therapeutic material for long-term regeneration of damaged cartilage.”

A company representative said, “We will conduct safety evaluations for clinical trials and efficacy evaluations in large animals to derive requirements related to implantable meniscus replacement and regenerative medical devices,” and added, “Upon completion, this will be the first case of developing a xenogeneic meniscus implant.”