FRANKLIN, Tenn.–(BUSINESS WIRE)–BioMimetic Therapeutics, Inc. (NASDAQ: BMTI – News) announced today that on April 3, 2009, the Company entered into a definitive purchase agreement with InterWest Partners X, LP, an affiliate of InterWest Partners, one of the Company’s existing stockholders, for the private placement of 941,177 shares of its common stock at a price of $8.50 per share. The purchase price represents a significant premium to the market price ($7.45 per share) of the Common Stock on the date of execution of the purchase agreement. The transaction is expected to raise approximately $8.0 million in gross proceeds. The closing of the financing is expected to occur as soon as practicable, subject to the satisfaction of customary closing conditions. The Company intends to use the proceeds of the financing for general corporate purposes, including working capital.
The shares offered to InterWest Partners have not been registered under the Securities Act of 1933, as amended (the “Act”), or under the securities laws of any state, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration, under the Act and applicable state securities laws. InterWest Partners is an accredited investor. The Company agreed to file a registration statement with the Securities and Exchange Commission (“SEC”) covering the resale of the shares issued in the private placement and certain other shares of common stock currently held by InterWest Partners.
In addition, the Company’s Board of Directors has approved a rights offering of up to $17 million to be made, on a pro rata basis, to the Company’s existing stockholders of record as of April 21, 2009, also at a price of $8.50 per share. The Company intends to proceed with the rights offering once a registration statement relating to the rights offering has been filed with, and declared effective by, the SEC, which we anticipate will occur shortly.
