ONCOCLÍNICAS APPROVES A CAPITAL INCREASE OF R$1.5 BILLION

Sao Paulo (ots/PRNewswire) – The aim of the operation is to strengthen the company’s financial position and maintain its growth strategy

Oncoclinics&Co (B3: ONCO3)a leading oncology company headquartered in Latin America, has announced that the company has approved a capital increase of R$1.5 billion at a board meeting on May 22, 2024.

This capital increase adheres to the upper limit set in the company’s articles of association and does not require any legal changes. 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, in order to continue to provide cancer patients with greater access to advanced oncological treatments, achieve economies of scale and optimize related costs,

The investors in Quíron Multi-Strategy Equity Investment Fund (“Quíron”) and Tessália Multi-Strategy Equity Investment Fund (“Tessália”), investment vehicles anchored by Banco Master, entered into an investment agreement with the Company and committed to Subscription of new shares worth up to R$ 1 billion issued by Oncoclínicas&Co. should be issued.

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

“The capital increase significantly strengthens our capital structure and makes us even better equipped to capitalize on future growth opportunities while continuing to provide exceptional quality care with our patients and their families at the core,” 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 current valuation of XP Finanças Assessoria Financeira Ltda. is based. The funds raised will be used to reduce the company’s consolidated debt, improve its liquidity position, continue its growth strategy, pursue its organic expansion plans and for general corporate purposes.

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

Daniel Vorcaro, Chairman of the Board of Banco Master, emphasized: “… healthcare is one of the markets with the greatest growth potential in Brazil in the coming years, be it in the pharmaceutical industry, primary care or high added value services, areas, in which Oncoclínicas&Co occupies a prominent position in Latin America. Being part of a company alongside Goldman Sachs that is revolutionizing access to oncology treatments in this country is a great opportunity and a real privilege for our company.”

According to João Padin, vice president of corporate 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 company and its commitment to the quality of the services offered to patients,” he added.

The notice to shareholders is available on the Oncoclínicas&Co investor relations website, the CVM website and the B3 SA website.

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

Note to editors:

Last year alone, the company performed more than 600,000 procedures and has expanded its service capacity in recent years to meet growing demand for cancer treatments. Projections from cancer institutes around the world and in Brazil suggest a significant increase in the disease over the next two decades, largely 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 more information, see http://www.grupooncoclinicas.com

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