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CYTOMEDIX TO RECEIVE $2.2 MILLION
FROM EXISTING WARRANTHOLDERS
ROCKVILLE, Md., May 1, 2006– Cytomedix, Inc. (AMEX: GTF),
a biotechnology company specializing in advanced technology and
autologous platelet gel for use with chronic non-healing wounds,
today announced that it has received commitments from existing
warrant holders to exercise outstanding warrants totaling $2.2
million in proceeds to the Company. These proceeds will be used to
further fund the Company’s growth and development.
The outstanding warrants were exercised in connection with a private
placement of Class D Warrants. In return for the exercise of the
outstanding warrants, Cytomedix is issuing a new five-year Class D
Warrant for each $7.50 received from the exercise of outstanding
warrants during the offer period. Each Class D Warrant gives the
holder the right to purchase one share of the Company’s common stock
at an exercise price of $3.50. These warrants have piggyback
registration rights and are callable if the Company’s stock closes
above $4.50 for 10 consecutive trading days.
Cytomedix received commitments to exercise outstanding warrants to
purchase 1.5 million shares of the Company’s common stock and
expects to issue Class D Warrants to purchase 294,000 shares of
common stock as a result of such exercises. To date, Cytomedix has
received $1.3 million in connection with this offer. The remaining
$900,000 is due in two installments, with the final payments due May
17, 2006.
“We are pleased with the success of our funding initiative and the
confidence that our shareholders have shown in the Company,” stated
Chairman and Chief Executive Officer Kshitij Mohan. “This Offer has
allowed Cytomedix to raise these funds at virtually no cost and with
only minimal dilution. This comes at a time when our AutoloGel™
System for use on chronic wounds is under review by the U.S. Food
and Drug Administration (FDA) and places Cytomedix in an even
stronger financial position to pursue broad commercialization of its
products. The Company is in communication with the FDA to ensure
that any additional information or analysis that is needed to arrive
at a decision is provided to the Agency in a timely manner.”
ABOUT CYTOMEDIX
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 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 also 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.
SOURCE: Cytomedix, Inc.
The Wall Street Group, Inc.
Ron Stabiner
(212) 888-4848 |
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