Over-subscribed deal proceeds to fund inventory, accounts receivable
By Susanna Moon
Chicago, July 5 - MiMedx Group, Inc. said it completed an over-subscribed $6,545,000 private placement of common stock and warrants. The company planned to sell $5 million.
From Oct. 30, 2010, through June 30, the company sold about 6,545,000 common shares at $1.00 each, which was the company's closing price on Oct. 29, 2010.
Investors also received 3,272,500 warrants.
"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," Parker H. Petit, chairman and chief executive officer, said in a press release.
"We should achieve our EBITDA breakeven 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," Petit added.
MiMedx is a Destin, Fla., developer of biomaterial-based products for use in the musculoskeletal specialties.
| Issuer: | MiMedx Group, Inc.
|
| Issue: | Common stock and warrants
|
| Amount: | $6,545,000
|
| Shares: | 6,545,000
|
| Price: | $1.00
|
| Warrants: | 3,272,500
|
| Pricing date: | Oct. 30, 2010
|
| Settlement date: | June 30
|
| Stock symbol: | OTCBB: MDXG
|
| Stock price: | $1.00 at close Oct. 30, 2010
|
| Stock price: | $1.01 at close June 30
|
| Market capitalization: | $78.97 million
|
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