Biomerica Announces $2.0 Million Investment by Palm Global Small Cap Master Fund
February 26 2020 - 4:41PM
Biomerica Inc. (NASDAQ: BMRA) (the “Company” or “Biomerica”)
announced today that the Company completed a private placement of
$2 million of convertible preferred stock with Palm Global Small
Cap Master Fund LP ("Palm"). The preferred shares are
initially convertible into shares of the Company's common stock at
a price of $3.50 per share. This represents a premium to the
market price of the Company’s common stock at the time of closing.
The Company intends to use the proceeds to, among other things,
obtain FDA clearance for and launch the Company’s H. Pylori product
in the United States and complete the InFoods® IBS clinical trials
needed for FDA clearance.
In connection with the investment by Palm, Joshua S. Horowitz
has been appointed as a non-voting observer to the Biomerica Board
of Directors. Mr. Horowitz has served as a Director of two separate
Nasdaq traded companies over the past six years. Most
recently, he served as Interim Chairman of the Board of the only
publicly traded dental service organization.
Joshua Horowitz, Portfolio Manager at Palm stated, “We are
impressed that Biomerica has created a formidable suite of
diagnostic products across the gastrointestinal spectrum. We are
excited by the potential of the Company’s existing products in both
colon cancer detection and H. Pylori as well as the prospects for
its novel InFoods® IBS product. In addition, we are enthused
by independent studies that show patients utilizing Biomerica’s
first generation food intolerance product had a significant
improvement in the IBS-D symptom of stool frequency as compared to
an efficacious drug in the class. We believe this data is exciting
because it indicates that the identification and elimination of
problematic foods from the diet could play a significant role in
treating patients with IBS.”
Zackary Irani, Chief Executive Officer of Biomerica, stated, “We
are pleased to add Palm as a significant shareholder and partner of
the Company. We are also looking forward to accelerating our
existing InFoods® IBS clinical trials and begin the process to
commercialize additional InFoods® products that address other
diseases states. Biomerica has attracted and signed leading medical
institutions and key opinion leaders for the InFoods® IBS product.
This exemplifies the excitement we see in the industry about the
potential benefits that InFoods® IBS could provide to both
physicians and patients.”
About Biomerica (NASDAQ: BMRA)Biomerica, Inc.
(www.biomerica.com) is a global biomedical company that develops,
patents, manufactures and markets advanced diagnostic and
therapeutic products used at the point-of-care (in home and in
physicians' offices) and in hospital/clinical laboratories for the
early detection and/or treatment of medical conditions and
diseases. The Company's products are designed to enhance the health
and well-being of people, while reducing total healthcare costs.
Biomerica primarily focus is on products for Gastrointestinal and
inflammatory diseases where the Company has multiple diagnostic and
therapeutic products in development and esoteric testing.
About InFoods® The Biomerica InFoods® IBS
product is designed to allow physicians to identify patient
specific foods (e.g. eggs, broccoli, wheat, potatoes, corn, etc.),
that when removed from the diet, may alleviate or improve an
individual's IBS symptoms including, but not limited to,
constipation, diarrhea, bloating, pain and indigestion. This
patented, diagnostic-guided therapy is designed to allow for a
patient specific, guided dietary regimen to improve Irritable Bowel
Syndrome (IBS) outcomes. The point-of-care product is being
developed to allow physicians to perform the test in-office using a
finger stick blood sample while a clinical lab version of the
product will be the first for which the company will seek
regulatory approval. A billable CPT code that can be used by both
clinical labs and physicians' offices is already available for
InFoods® diagnostic products. Since the InFoods® product is a
diagnostic-guided therapy, and not a drug, it has no drug type side
effects. An estimated 45 million people in America currently suffer
from IBS making it a leading cause for patient doctor visits.
The Private Securities Litigation Reform Act of 1995 provides a
"safe harbor" for forward-looking statements. Certain information
included in this press release (as well as information included in
oral statements or other written statements made or to be made by
Biomerica) contains statements that are forward-looking; such as
statements relating to intended launch dates, sales potential,
significant benefits, market size, prospects, new products,
commencement of FDA clinical trials, completion of clinical
trials, favorable outlook, new distributors, expansion,
increases in productivity and margins, expected orders, leading
market positions, anticipated future sales or production volume of
the Company, the launch or success of product and new product
offerings. Such forward-looking information involves important
risks and uncertainties that could significantly affect anticipated
results in the future, and accordingly, such results may differ
materially from those expressed in any forward-looking statements
made by or on behalf of Biomerica. The potential risks and
uncertainties include, among others, fluctuations in the Company's
operating results due to its business model and expansion plans,
downturns in international and or national economies, the Company's
ability to raise additional capital, the competitive environment in
which the Company will be competing, and the Company's dependence
on strategic relationships. The Company is under no obligation to
update any forward-looking statements after the date of this
release. The Private Securities Litigation Reform Act of 1995
provides a "safe harbor" for forward-looking statements. Certain
information included in this press release (as well as information
included in oral statements or other written statements made or to
be made by Biomerica) contains statements that are forward-looking;
such as statements relating to intended launch dates, sales
potential, significant benefits, market size, prospects, new
products, commencement of FDA clinical trials, completion of
clinical trials, favorable outlook, new distributors,
expansion, increases in productivity and margins, expected orders,
leading market positions, anticipated future sales or production
volume of the Company, the launch or success of product and new
product offerings. Such forward-looking information involves
important risks and uncertainties that could significantly affect
anticipated results in the future, and accordingly, such results
may differ materially from those expressed in any forward-looking
statements made by or on behalf of Biomerica. The potential risks
and uncertainties include, among others, fluctuations in the
Company's operating results due to its business model and expansion
plans, downturns in international and or national economies, the
Company's ability to raise additional capital, the competitive
environment in which the Company will be competing, and the
Company's dependence on strategic relationships. The Company is
under no obligation to update any forward-looking statements after
the date of this release.
CONTACT INFORMATION
Zackary Irani 949-645-2111 www.biomerica.com
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