Business
Elutia Announces Private Placement for Proceeds Up to $26 Million
– Combined proceeds of financing and Orthobiologics divestiture potentially top $60 million – SILVER SPRING, Md., Sept. 19, 2023 (GLOBE NEWSWIRE) -- Elutia
About this update from Elutia, Inc.
[{"type":"text","content":"– Combined proceeds of financing and Orthobiologics divestiture potentially top $60 million – SILVER SPRING, Md., Sept. 19, 2023 (GLOBE NEWSWIRE) -- Elutia Inc. (Nasdaq: ELUT) (“Elutia”), a company pioneering drug-eluting biomatrix products, today announced that it has entered into a securities purchase agreement for a private placement (PIPE) financing that is expected to result in initial gross proceeds to the Company of approximately $10.5 million, before deducting offering expenses. The full exercise of warrants included in the financing would add $15.8 million, for total gross proceeds of $26.2 million. Cash raised from the PIPE financing and the Orthobiologics business unit divestiture, announced yesterday, will support the Company’s advancement of its drug-eluting biomatrix products for the cardiac pacemaker and defibrillator market and breast reconstruction post-mastectomy. “We appreciate the support of our investors, demonstrating the high value of our platforms and technology for patient care,” said Dr. Randy Mills, President and Chief Executive Officer of Elutia. “The combined proceeds from our Orthobiologics divestiture and today’s financing potentially adds more than $60 million in cash to our balance sheet, materially strengthening our financial position and extending our cash runway. We remain well-positioned to execute on our upcoming program milestones involving CanGaroo® for device protection and SimpliDerm® for breast reconstruction.” The private placement financing included participation by existing investor HighCape Capital and new investors Nantahala Capital and a life-sciences focused investment fund. Lake Street Capital Markets, LLC is acting as the exclusive placement agent for the transaction. Pursuant to the securities purchase agreement, Elutia is selling an aggregate of 7,355,869 shares of the Company’s common stock (or pre-funded warrants) and 11,033,804 warrants to purchase common stock (or pre-funded warrants) at a price of $1.4275 per share and associated warrants (less $0.001 in the case of pre-funded warrants), priced at-the-market. Each common stock purchase warrant is exercisable at $1.4275 per share at any time until the earlier of: a) 30 trading days after the FDA clearance of the Company’s CanGaroo®RM antibiotic-eluting biologic envelope or b) five years from the date of issuance. In conne...