GAITHERSBURG, MARYLAND -- (Marketwire) -- 02/20/13 -- Cytomedix, Inc. (OTCQX: CMXI)
•$7.5 Million Senior Secured Term Loan Facility •$5.0 Million Equity Raise •$15 Million Committed Equity Facility
Cytomedix, Inc. (OTCQX: CMXI) (the "Company"), a regenerative therapies company commercializing and developing innovative platelet and adult stem cell technologies, announced today the execution of a comprehensive financing plan for 2013. Included in these executed transactions is a tranched $7.5 million senior secured term loan facility, a $5 million equity raise, and a $15 million committed equity facility. The initial fundings position Cytomedix to confidently execute on its 2013 operational business plan.
"We are pleased with this capital infusion, as it provides us with the necessary capital to execute on our strategic growth plans," said Martin Rosendale, Chief Executive Officer of Cytomedix. "This capital will facilitate our continued growth following the record product sales we achieved in the fourth quarter of 2012, the expansion of the AutoloGel System with Medicare coverage, and the international growth of the Angel cPRP System."
$7.5 Million Credit & Security Agreement with MidCap Financial, LLC
The Company has entered into a Credit and Security Agreement with Midcap Financial LLC. The agreement provides for an aggregate term loan commitment of $7.5 million, of which $4.5 million will be received by the Company in the first tranche upon the closing of the transaction, following satisfaction of certain closing conditions. The second tranche of $3.0 million may be advanced to the Company, at the Company's discretion, upon satisfaction of certain milestone and additional capital inflow requirements.
$5 Million Registered Offering
The Company has also entered into securities purchase agreements with certain existing institutional shareholders comprising members of its largest existing shareholder, Aldagen Holdings LLC, the State of Maryland Venture Fund, and other new institutional investors for the sale of 9,090,910 shares of its common stock in a registered offering at $0.55 per share. In addition, warrants to purchase an aggregate of 6,363,637 shares of common stock will be issued to the investors. The warrants are exercisable immediately, expire five years after issuance and have an exercise price of $0.75 per share. Gross proceeds of the offering, before placement agent fees and offering expenses, are expected to be $5.0 million. Subject to customary closing conditions, this transaction is expected to close on or before February 25, 2013. These securities were offered through a prospectus supplement pursuant to the Company's effective shelf registration statement and base prospectus contained therein. Burrill Securities LLC acted as sole placement agent for this offering, and Barrington Research Associates, Inc. acted as a financial advisor to the Company in connection with the offering.
$15 Million Committed Equity Facility
As a condition to the Credit and Security Agreement, on February 18, 2013, the Company entered into a purchase agreement, together with a registration rights agreement, with Lincoln Park Capital Fund, LLC, who also participated in the $5 million registered offering, pursuant to which the Company has the right to sell to Lincoln Park up to $15 million in shares of its common stock, subject to certain limitations, from time to time over the 30-month period commencing on the date that a registration statement, which the Company agreed to file with the Securities and Exchange Commission pursuant to the registration rights agreement, is declared effective by the SEC and a final prospectus in connection therewith is filed. The Company's sales of shares of Common Stock to Lincoln Park under the Purchase Agreement are limited to no more than the number of shares that would result in the beneficial ownership by Lincoln Park and its affiliates, at any single point in time, of more than 9.99% of the then outstanding shares of the Company's common stock.
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