Medgenics Ltd. (AIM:MEDG; NYSE: MDGN), which is developing technology for the sustained production and delivery of therapeutic proteins in patients using their own tissue, has raised $9.5 million ($8.4 million net). The money was raised through the sale of 1,944,734 shares with each unit consisting of one share of the company’s common stock, $0.0001 par value per share, and a warrant to purchase 0.75 of one share of common stock.
The company said that each unit was sold for a purchase price of $4.90 to institutional and other accredited investors in a private placement transaction. The warrants expire in five years, have an initial exercise price of $8.34 per full share, and become exercisable on December 15, 2012.
Medgenics said that it plans using the proceeds from this private placement to further its clinical trial programs for its EPODURE Biopump producing erythropoietin for the treatment of anemia, and its INFRADURE Biopump producing interferon-alpha for the treatment of hepatitis, as well as for other R&D, patent maintenance and other intellectual property support and general corporate purposes.
Maxim Group LLC acted as the exclusive placement agent for the private placement.
Medgenics president and CEO Andrew Pearlman said, “To date in 2012 we have achieved several regulatory milestones towards launching new clinical trials in the US and in Israel. The capital we raised will be applied towards funding key studies in anemia and hepatitis, as well as advancing our technologies along the path towards commercialization.”
Medgenics' share price fell 6.5% on the NYSE today to $6.50, giving a market cap of $61.5 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 19, 2012
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