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Cytomedix, Deerfield Complete Second Tranche of $35MM Debt Financing

June 27, 2014, 07:13 AM
Filed Under: Medical

Cytomedix, Inc, a leading developer of biologically active regenerative therapies, announced receipt, following satisfaction of closing conditions, of the second tranche of the gross proceeds in the amount of $26 million (for a total $35 million) in convertible debt financing from certain investment funds managed by Deerfield Management Company, L.P. Under the terms of the Facility Agreement dated as of March 31, 2014, Deerfield agreed to provide to the company up to $35 million in financing through a senior secured convertible debt facility.

The commitment consisted of two separate tranches, of which the first $9 million was received upon initial closing of the transaction on March 31, 2014. The second tranche in the gross amount of $26 million was completed as anticipated. As previously disclosed, the notes have a fixed conversion price of $0.52 per share. Following the retirement of debt and payment of certain expenses associated with the closing of the second tranche, the net proceeds to the company were approximately $22.1 million.

"The successful completion of this financing with Deerfield will allow us to proceed with the implementation of our commercial strategy to provide a therapeutic and cost effective alternative for patients suffering with chronic wounds," said Martin Rosendale, Cytomedix Chief Executive Officer. "We continue to believe that AutoloGel's efficacy across a wide range of wound types combined with our recently granted Medicare coverage, provides a tremendous opportunity for patients, caregivers and the Company. We are appreciative of Deerfield's commitment to Cytomedix and highly value their now increased and significant financial partnership with us."

Cytomedix, Inc. is an autologous regenerative therapies company commercializing innovative platelet technologies for wound care. The company markets the AutoloGel(TM) System, a device for the production of autologous platelet rich plasma ("PRP") gel for use on a variety of exuding wounds.

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