Regenerative therapies maker Cytomedix (OTC:CMXI) plans to raise up to $27.5 million through a "comprehensive 2013 financing plan" in order to maintain the momentum that led to record sales in the last quarter.
The news didn’t seem to bode well with investors who fled in droves today, dragging CMXI shares down 20% to trade at 52.5¢ as of about 11:10 a.m.
The Maryland company this morning announced a tranched $7.5 million senior secured term loan facility, a $5 million equity raise, and a $15 million committed equity facility, which the company says put it in position to "confidently execute on its 2013 operational business plan."
"We are pleased with this capital infusion, as it provides us with the necessary capital to execute on our strategic growth plans," CEO Martin Rosendale said in prepared remarks. "This capital will facilitate our continued growth following the record product sales we achieved in the fourth quarter of 2012, the expansion of the AutoloGel System with Medicare coverage, and the international growth of the Angel cPRP System."
The company is riding high from a recent record breaking 4th quarter, in which sales grew 27% to $2 million during the 3 months ended Dec. 31, 2012.
In December 2012 Cytomedix won European regulatory approval for its Angel concentrated platelet rich plasma system, which is designed to produce consistently high platelet yields for potential use in bone repair and regeneration in spinal, periodontal and joint revision surgery. That system had won FDA clearance in November.
