Portfolio News
BioMimetic Therapeutics plans to raise $25 million
The Tennessean [Online]
Getahn Ward
6 April 2009
BioMimetic Therapeutics Inc. said that it plans to raise up to $25 million through two transactions, money that will be used for corporate purposes including funding clinical trials of its second orthopedic product.
The Franklin-based medical products maker said it expects to raise about $8 million from selling shares in a private placement to an affiliate of existing shareholder InterWest Partners.
The company plans to use proceeds from the sale of stock at $8.50 a share - a premium to Friday's closing price of $7.45 a share - for corporate purposes including working capital, officials said.
BioMimetic also said its board approved a plan to raise up to $17 million through offering stockholders as of April 21, 2009 rights to purchase stock in the company at $8.50 a share. Novo A/S, another existing stockholder, meanwhile, has agreed to purchase up to $15 million of common stock in the rights offering if other current shareholders don't participate.
In addition to funding the clinical trials and other corporate needs, BioMimetic said that it is raising the money to guard against uncertainty about when it would be able to receive certain payments and the challenging financial markets conditions.
