KENNESAW, Ga., Aug. 6, 2012 /PRNewswire/ -- MiMedx Group, Inc. (OTCBB: MDXG), an integrated developer, manufacturer and marketer of patent protected regenerative biomaterials and bioimplants processed from human amniotic membrane, announced today that the Company has raised over $4.9 million through the exercise of Callable Warrants issued in conjunction with the October 2010 Private Placement.
The Company exercised its right to redeem the Warrants effective August 3, 2012. Holders had the option to exercise the Warrants or have them redeemed by the Company. Over 98% of the Callable Warrants were exercised.
Parker H. "Pete" Petit, Chairman and CEO, said, "The exercise of these Warrants is a 'win-win' for the Company and our investors, as it strengthens our balance sheet, and provides a nice return for the holders. The Company intends to use the proceeds for general operating needs, including additional clinical trials, as well as the addition of some key direct sales force hires. These hires will also help expedite our strategy to expand our direct sales representatives and move toward a blended sales force."
Cancellation of Second Contingent Warrants
The Company also announced the cancellation of approximately 3.2 million Second Contingent Warrants. The Warrants had been issued to holders that invested in the Company's October 2010 Private Placement and the Senior Secured Promissory Notes issued in December 2011. More details regarding the terms of the private placement and warrants are disclosed in the Company's SEC filings.
About the Company
MiMedx® is an integrated developer, manufacturer and marketer of patent protected regenerative biomaterial products and bioimplants processed from human amniotic membrane. "Innovations in Regenerative Biomaterials" is the framework behind our mission to give physicians products and tissues to help the body heal itself. Our biomaterial platform technologies include the device technologies HydroFix® and CollaFix™, and our tissue technologies, AmnioFix® and EpiFix®. Our tissue technologies, processed from the human amniotic membrane, utilize our proprietary Purion® Process that was developed by our wholly-owned subsidiary, Surgical Biologics, to produce a safe, effective and minimally manipulated implant for homologous use. Surgical Biologics is the leading supplier of amniotic tissue, having supplied over 90,000 implants to date to distributors and OEMs for application in the Ophthalmic, Orthopedics, Spine, Wound Care and Dental sectors of healthcare.
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 expected return for the holders of the warrants and the proposed use of proceeds from the exercise of the warrants. 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 the holders may not realize the expected return on the warrants, that the Company may not employ the proceeds as anticipated, 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, 2011. 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.