MARIETTA, Ga., July 5, 2011 /PRNewswire/ -- MiMedx Group, Inc. (OTCBB: MDXG), 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."
About the Company
MiMedx is an integrated developer, manufacturer and marketer of patent protected biomaterial-based products and bioimplants manufactured from human amniotic membrane. The Company has an experienced team poised to capitalize on its science and technology to generate rapid sales growth and profitability. Our mantra is "Repair, don't replace" because our biochemists, engineers, designers and physicians believe it is better to augment repair when possible rather than replace traumatized, but otherwise healthy tissues and structures. Our biomaterial-based platform technologies, HydroFix™ and CollaFix™, along with AmnioFix™ and EpiFix®, our tissue-based platform technologies that utilize our proprietary Purion® process developed by our wholly-owned subsidiary, Surgical Biologics, have a vast number of potential applications in treating traumatized tissue and structures. MiMedx is focused on commercializing multiple applications for the Company's four technology platforms. In parallel, we are seeking strategic relationships, in selective categories, to more rapidly commercialize our technologies.
Safe Harbor Statement
This press release includes statements that look forward in time or that express management's beliefs, expectations or hopes. Such statements are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, the anticipated use of the funds from the private placement, the adequacy of the funds received to transition the Company through EBITDA break even and profitability, and the Company's ability to achieve EBITDA break even in the third quarter. These statements are based on current information and belief, and are not guarantees of future performance. Among the risks and uncertainties that could cause actual results to differ materially from those indicated by such forward-looking statements include that that unanticipated events may prevent the Company from using the proceeds of the private placement for the intended purpose, that the Company may require additional capital beyond the proceeds of the offering referenced in this release to achieve its goals, that the Company many not be able to achieve or sustain EBITDA breakeven or profitability, and the risk factors detailed from time to time in the Company's periodic Securities and Exchange Commission filings, including, without limitation, its 10-K filing for the fiscal year ended December 31, 2010 and its most recent Form 10-Q. By making these forward-looking statements, the Company does not undertake to update them in any manner except as may be required by the Company's disclosure obligations in filings it makes with the Securities and Exchange Commission under the federal securities laws.
SOURCE MiMedx Group, Inc.