Bacterin International Holdings, a developer of bone graft material and antimicrobial coatings for medical applications, has closed a USD25m non-dilutive financing with an affiliate of OrbiMed Advisors.
The financing will enable Bacterin to execute its growth strategy through anticipated profitability.
Under the terms of the agreement, Bacterin initially received USD20m and has the ability to draw down an additional USD5m based upon the achievement of mutually agreed upon revenue objectives prior to 31 December 2013. The company received net proceeds of approximately USD10m after repayment of existing indebtedness as well as other transaction related fees and expenses. Net proceeds will be used by the company for general working capital purposes. No equity securities or warrants were issued as part of the transaction.
"Today’s funding marks an important milestone for the company as we entered into a financing agreement with OrbiMed. With this financing, we don’t anticipate the need for additional working capital in our pursuit of achieving profitability," says Guy Cook, chairman and chief executive of Bacterin. "OrbiMed’s recognition of Bacterin’s unique technology and strong growth profile enabled us to secure this non-dilutive financing option. The future and long-term opportunity for Bacterin products, in multi-billion dollar addressable markets, is today stronger than ever."
"We are very pleased to partner with Bacterin and offer a non-dilutive capital solution to help the company execute its growth strategy," says Tadd Wessel, a managing director on the royalty opportunities team at OrbiMed.