MiMedx Group Completes $5,000,000 Private Placement (press release)
MiMedx Group, Inc. (OTCBB:MDXG.ob – News), an integrated developer, manufacturer and marketer of patent protected regenerative biomaterials including bioimplants processed from human amniotic membrane, announced today that the Company’s $5,000,000 private placement offering to sell common stock and warrants has been over-subscribed.
From the commencement of the offering on October 30, 2010, through June 30, 2011, the Company sold approximately 6,545,000 shares of common stock at a price of $1.00 per share and received proceeds of approximately $6,417,000, net of $128,000 in offering costs. Participating investors also received warrants to purchase the Company’s common stock. Through June 30, 2011, the Company issued a total of 3,272,500 warrants. More details regarding the private placement, including the terms of the warrants, are disclosed in the Company’s SEC filings.
Parker H. “Pete” Petit, Chairman and CEO, said, “We are pleased with the degree of participation from our existing shareholders, and we are very grateful to have their continued support. We appreciate the confidence of the new investors that participated in this private placement. As with our previous private placements, I again participated in this offering along with some other MiMedx directors. The cash will primarily be used to fund additional working capital, such as the inventory and accounts receivable required to support our revenue growth. This capital should provide the Company with sufficient cash to transition through EBITDA breakeven and to profitability.”
Commenting further on the Company’s growth, Petit added, “We should achieve our EBITDA break-even during the third quarter which is a major milestone for the Company. We are experiencing an excellent reception to our amniotic membrane tissue, and we will report a very good second quarter with revenue significantly higher than our first quarter.”