CollPlant (NASDAQ:CLGN), a regenerative medicine company, announced it has closed on a total of $5.5 million in convertible loans. A group of U.S. accredited investors with deep experience in the 3D printing industry purchased $3.5 million of the convertible loans, and the Company's largest shareholder, Ami Sagi, purchased $2.0 million of the convertible loans, through a non-brokered private placement.
The convertible loans totaling $5.5 million automatically convert into the Company's American Depositary Shares (ADSs) at a conversion price of $4.00 per ADS following approval of the transaction by CollPlant's shareholders. Mr. Sagi and the U.S. investors will also receive three-year warrants to purchase up to an aggregate of 1,625,000 ADSs exercisable at an exercise price of $4.00 per ADS, subject to the satisfaction of certain closing conditions.
An additional $1.0 million investment will be made by Ami Sagi following the execution of a license and/or a co-development agreement between CollPlant and a strategic business partner, if such were to occur.
For more information on the transaction, please see the Company's Report on Form 6-K filed with the Securities and Exchange Commission on September 3, 3019.
The securities described above were offered and sold in a private placement under Regulation S and Section 4(a)(2) of the Securities Act of 1933, as amended and Regulation D promulgated thereunder, and may not be offered or sold in the United States absent registration with the SEC or an applicable exemption from such registration requirements.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein. There shall not be any offer, solicitation of an offer to buy, or sale of securities in any state or jurisdiction in which such an offering, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About CollPlant
CollPlant is a regenerative medicine company focused on 3D bioprinting of tissues and organs, medical aesthetics. Our products are based on our rhCollagen (recombinant human collagen) that is produced with CollPlant's proprietary plant based genetic engineering technology.
Our products address indications for the diverse fields of organ and tissue repair, and are ushering in a new era in regenerative medicine. Our flagship rhCollagen BioInk product line is ideal for 3D bioprinting of tissues and organs. In October 2018, we entered into a licensing agreement with United Therapeutics, whereby United Therapeutics is using CollPlant's BioInks in the manufacture of 3D bioprinted lungs for transplant in humans.
For more information about CollPlant, visit http://www.collplant.com.
