Regenerative medicine company CollPlant said today it inked a $5 million private placement deal to support its plant-based rhCollagen technology for tissue repairs.
As part of the private placement round, Israel-based CollPlant said it will pursue an up-listing of its ADSs on the Nasdaq exchange following the 1st phase of the transaction closing, which is slated for mid-September.
“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,” CEO Yehiel Tal said in a press release.
Funding will come in 3 tranches, with $2 million up front, $2 million upon approval of the transaction by shareholders and $1 million upon up-listing on the Nasdaq exchange.
CollPlant said that several of its largest shareholders plan to invest additional capital through a subsequent, private placement transaction.