MagForce noted that Mithril Capital Management led a group of strategic investors have an option to increase the size of investment to $30m.
With the closing of this financing round, the parent company MagForce owns 77% stake in MagForce USA with remaining held by strategic investors.
The strategic investors have option to increase their ownership in future by exercising the warrants held by them.
MagForce AG has granted a license for MagForce USA to develop and commercialize NanoTherm(TM) Therapy for the treatment of brain and prostate cancers.
MagForce USA will also receive royalties for the sale of NanoTherm(TM) particles for the treatment of prostate cancer outside North America, under the prostate cancer license.
MagForce AG chairman and CEO Ben Lipps said the company intends to develop technology to offer a new focal treatment for Intermediate Stage Prostate Cancer with precise ablation of the cancer lesion while sparing normal tissue.
"In Mithril, we have found the right collaborator to support our expansion plans. Ajay Royan and Peter Thiel have proven themselves numerous times to be valuable partners in helping companies unlock long-term growth," Lipps added.
MagForce, along with its subsidiary, works in the field of nanomedicine focused on oncology. MagForce has developed a technique of injecting iron oxide nanoparticles into a patient and vibrate them with a magnetic field which helps in killing cancerous cells.
