CollPlant, a regenerative medicine company utilizing its proprietary plant-based rhCollagen (recombinant human Collagen”) technology for tissue repair products, signed a definitive agreement with a US investor for a $5 million private placement. The closing of the first phase of the transaction is expected in mid-September.
As part of the agreement, and as previously announced, CollPlant will pursue an uplisting of its ADSs on the NASDAQ Exchange immediately following the first Closing. The Company also announced that continued intention of several of its largest current shareholders to invest substantial additional capital through a subsequent, private placement transaction.
“We are pleased to have signed a definitive agreement with this US investor. This transaction, once closed, and in combination with potential, additional funds from current investors, will increase our financial stability and allow us to progress our strategic plan more rapidly. In addition to supporting our Vergenix™STR and Vergenix™FG commercial distribution partners in Europe, we continue to advance our pipeline, including a novel rhCollagen-based BioInk for 3D printing of tissues and organs. We believe that our unique tissue repair technology may represent a potential paradigm shift in the field of regenerative medicine, and we look forward to raising CollPlant’s profile and expanding our shareholder base through an up-listing to the NASDAQ Exchange” – said Yehiel Tal, Chief Executive Officer of CollPlant.
As previously detailed, the financing transaction will occur in three tranches: $2 million upon signing of the transaction agreement, $2 million upon approval of the transaction at a soon-to-be-convened special meeting of shareholders, and $1 million upon a successful up-listing to the NASDAQ Exchange.
CollPlant is a regenerative medicine company leveraging its proprietary, plant-based recombinant human collagen (rhCollagen) technology for the development and commercialization of tissue repair products, initially for the orthobiologics, 3D Bio-printing of tissue and organs, and advanced wound care markets. The Company’s cutting-edge technology is designed to generate and process proprietary rhCollagen, among other patent-protected recombinant proteins.
Given that CollPlant’s rhCollagen is identical to the type I collagen produced by the human body, it offers significant advantages compared to currently marketed tissue-derived collagen, including improved biofunctionality, superior homogeneity and reduced risk of immune response. The Company’s broad development pipeline includes biomaterials indicated for orthopedics and advanced wound healing. Lead products include: Vergenix STR (Soft Tissue Repair Matrix), for the treatment of tendinopathy; and Vergenix FG (Flowable Gel) wound filler, for treatment of acute and chronic wounds.
CollPlant’s business strategy includes proprietary development and manufacture of tissue repair products and their commercialization and distribution, together with leading third parties, alongside alliances with leading companies for joint development, manufacture and marketing of additional products.