CYTOMEDIX ISSUES WARRANT CALL
Potential $2.4 Million Cash Infusion
ROCKVILLE, Md., Aug 2, 2006 – Cytomedix, Inc. (AMEX: GTF), a biotechnology company specializing in developing and licensing systems for use with non-healing chronic wounds including diabetic ulcers, today announced that, having met certain trading conditions, it has issued warrant calls for 100%, or 273,400, of its outstanding Series C-1 warrants, and 100%, or 1,332,334 of its outstanding Unit Warrants that were subject to call.
The exercise price on all warrants is $1.50. Total cash to be received if all called warrants are exercised is approximately $2.4 million. The primary condition that the Company needed to meet prior to calling these warrants was for the closing price of the stock to exceed $3.00 for the ten consecutive trading days prior to delivery of the call notice.
If all called warrants are exercised, the Company would have approximately 29.4 million shares outstanding. The Company will remit $0.01 for each called warrant that is not exercised.
“The cash proceeds from this warrant call will further bolster our cash position,” stated Cytomedix Chairman and Chief Executive Officer Kshitij Mohan. “We plan to utilize the proceeds for general corporate purposes and believe that it is prudent to be in a stronger cash position at this juncture in our progress. As we look at the Company’s progress to date, we have had considerable success in enforcing our patents through royalty bearing licenses; have completed a clinical trial of our Autologel™ technology with favorable results; have made a 510(k) submission to FDA and have sent the Agency further information and analysis that they requested while we await a meeting with them currently scheduled for early September 2006. In addition, since March 2004, we have not done any financings other than raise about $2.3 million with minimal dilution and costs, by issuing our D warrants in May 2006, in exchange for our shareholders exercising other warrants that they held. This new warrant call will further simplify our capital structure and strengthen our financial position with no dilution and minimal costs. Strengthening our financial position with this additional infusion of inexpensive capital and tightly managing our cost structure will allow us to move resolutely to execute on our strategic objectives.”
Cytomedix, Inc. is a biotechnology company specializing in processes and products derived from autologous platelet releasates for uses with wounds and other applications. The current offering is AutoloGel™System, a process that utilizes an autologous platelet gel composed of multiple growth factors, other platelet releasates, and fibrin matrix. The Company has announced favorable results from its blinded, prospective, multi-center clinical trial on the use of its technology with diabetic foot ulcers. Additional information regarding Cytomedix is available at: http://www.cytomedix.com
SAFE HARBOR STATEMENT
Statements contained in this press release not relating to historical facts are forward-looking statements that are intended to fall within the safe harbor rule for such statements under the Private Securities Litigation Reform Act of 1995. The information contained in the forward-looking statements is inherently uncertain, and Cytomedix's actual results may differ materially due to a number of factors, many of which are beyond Cytomedix's ability to predict or control, including among others, the success of new sales initiatives, governmental regulation, acceptance by the medical community and competition.
There is no guarantee that the FDA will complete its review of the Company’s 510(k) submission for a specific wound healing indication within any estimated timeframe, or that the FDA will fully agree with the Company in the interpretation of the data or the regulatory pathway and provide marketing clearance. Further, even assuming the FDA grants the Company’s request for marketing clearance, there is no guarantee that the Company will receive Medicare reimbursement for its product; the Company’s marketing efforts will be successful; or that it will be able to achieve its other strategic goals.
There is no guarantee that the Company’s current capitalization will be sufficient to attain its goals or that future funding will be available to the Company on acceptable terms. These forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual events to differ from the forward-looking statements. More information about some of these risks and uncertainties may be found in the reports filed with the Securities and Exchange Commission by Cytomedix, Inc. Except as is expressly required by the federal securities laws, Cytomedix undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason.
Kshitij Mohan, Ph.D., Chairman and CEO
The Wall Street Group, Inc.
Source: Cytomedix, Inc.