REHOVOT, Israel, Sept. 3, 2019 /PRNewswire/
-- CollPlant (NASDAQ: CLGN) (the "Company"), a
regenerative medicine company, announced it has entered into
definitive agreements for up to $6.5
million funding in convertible loans. The capital raise is
by way of a non-brokered private placement with Ami Sagi, the Company's largest shareholder, and
U.S. accredited investors with many years of deep experience in 3D
printing. Under the terms of the transaction, the initial closing
with Mr. Sagi occurred on September 3
2019 where Mr. Sagi funded the Company with $2.0 million. The U.S. accredited investors have
agreed to purchase $3.5 million in
convertible loans, and the Company expects to complete the initial
closing with the U.S. investors by September
5, 2019, subject to the satisfaction of customary closing
conditions.
Mr. Sagi has agreed to fund an additional $1.0 million following the execution of a license
and/or a co-development agreement between CollPlant and a strategic
business partner, if such were to occur. The convertible loans
automatically convert into the Company's American Depositary Shares
(ADSs) at a conversion price of $4.00
per ADS following approval of the transaction by CollPlant's
shareholders. Mr. Sagi and the U.S. investors will also receive
three-year warrants to purchase up to an aggregate of 1,625,000
ADSs exercisable at an exercise price of $4.00 per ADS, subject to the satisfaction of
certain closing conditions.
"This fund raising is intended to support the advancement of our
pipeline in the fields of medical aesthetics and 3D bioprinting of
tissues and organs," stated Yehiel
Tal, the Chief Executive Officer of CollPlant. "We are now
focused on facilitating our development programs of dermal
fillers and regenerative breast implants. Our collaboration with
United Therapeutics, which is using our BioInk technology for 3D
printing lungs, is progressing, and we continue to expand our
business collaborations with large international healthcare
companies that seek to implement our revolutionary regenerative
medicine technology. We are very pleased to have entered into this
transaction with Mr. Sagi and the other investors."
For more information on the transaction, please see the
Company's Report on Form 6-K filed with the Securities and Exchange
Commission on September 3, 3019.
The securities described above were offered and sold in a
private placement under Regulation S and Section 4(a)(2) of the
Securities Act of 1933, as amended and Regulation D promulgated
thereunder, and may not be offered or sold in the United States absent registration with the
SEC or an applicable exemption from such registration
requirements.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any of the securities described
herein. There shall not be any offer, solicitation of an offer to
buy, or sale of securities in any state or jurisdiction in which
such an offering, solicitation, or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
About CollPlant
CollPlant is a regenerative medicine company focused on 3D
bioprinting of tissues and organs, medical aesthetics. Our
products are based on our rhCollagen (recombinant human collagen)
that is produced with CollPlant's proprietary plant based genetic
engineering technology.
Our products address indications for the diverse fields of organ
and tissue repair, and are ushering in a new era in regenerative
medicine. Our flagship rhCollagen BioInk product line is ideal for
3D bioprinting of tissues and organs. In October 2018, we entered into a licensing
agreement with United Therapeutics, whereby United Therapeutics is
using CollPlant's BioInks in the manufacture of 3D bioprinted lungs
for transplant in humans.
For more information about CollPlant, visit
http://www.collplant.com
Safe Harbor Statements
This press release may include forward-looking statements.
Forward-looking statements may include, but are not limited to,
statements relating to CollPlant's objectives plans and strategies,
as well as statements, other than historical facts, that address
activities, events or developments that CollPlant intends, expects,
projects, believes or anticipates will or may occur in the future.
These statements are often characterized by terminology such as
"believes," "hopes," "may," "anticipates," "should," "intends,"
"plans," "will," "expects," "estimates," "projects," "positioned,"
"strategy" and similar expressions and are based on assumptions and
assessments made in light of management's experience and perception
of historical trends, current conditions, expected future
developments and other factors believed to be appropriate.
Forward-looking statements are not guarantees of future performance
and are subject to risks and uncertainties that could cause actual
results to differ materially from those expressed or implied in
such statements. Many factors could cause CollPlant's actual
activities or results to differ materially from the activities and
results anticipated in forward-looking statements, including, but
not limited to, the following: the Company's history of significant
losses, its ability to continue as a going concern, and its need to
raise additional capital and its inability to obtain additional
capital on acceptable terms, or at all; the Company's expectations
regarding the timing and cost of commencing clinical trials with
respect to tissues and organs which are based on its rhCollagen
based BioInk, dermal fillers for aesthetics, VergenixSTR, and
VergenixFG; the Company's ability to obtain favorable pre-clinical
and clinical trial results; regulatory action with respect to
rhCollagen based BioInk, dermal fillers for aesthetics,
VergenixSTR, and VergenixFG including but not limited to acceptance
of an application for marketing authorization, review and approval
of such application, and, if approved, the scope of the approved
indication and labeling; commercial success and market acceptance
of the Company's rhCollagen based BioInk, dermal fillers for
aesthetics, VergenixSTR, and VergenixFG; the Company's ability to
establish sales and marketing capabilities or enter into agreements
with third parties and its reliance on third party distributors and
resellers; the Company's ability to establish and maintain
strategic partnerships and other corporate collaborations; the
Company's reliance on third parties to conduct some or all aspects
of its product manufacturing; the scope of protection the Company
is able to establish and maintain for intellectual property rights
and the Company's ability to operate its business without
infringing the intellectual property rights of others; the overall
global economic environment; the impact of competition and new
technologies; general market, political, and economic conditions in
the countries in which the Company operates; projected capital
expenditures and liquidity; changes in the Company's strategy; and
litigation and regulatory proceedings. More detailed information
about the risks and uncertainties affecting CollPlant is contained
under the heading "Risk Factors" included in CollPlant's most
recent annual report on Form 20-F filed with the SEC, and in other
filings that CollPlant has made and may make with the SEC in the
future. The forward-looking statements contained in this press
release are made as of the date of this press release and reflect
CollPlant's current views with respect to future events, and
CollPlant does not undertake and specifically disclaims any
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events
or otherwise.
Contact
at CollPlant:
Eran Rotem
Deputy CEO & CFO
Tel: + 972-73-2325600
Email: Eran@collplant.com
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SOURCE CollPlant