FRANKLIN, Tenn.–(BUSINESS WIRE)–BioMimetic Therapeutics, Inc. (NASDAQ: BMTI) announced today that the Securities and Exchange Commission (the “SEC”) has declared effective the Registration Statement on Form S-3 filed by the Company in connection with the rights offering previously announced by the Company. Accordingly, the Company has launched the $17 million rights offering pursuant to which holders of its common stock, except with respect to shares of common stock held by the BioMimetic 401K Plan, will be entitled to purchase additional shares of its common stock at a price of $8.50 per share. The proceeds from the rights offering are expected to be used for general corporate purposes, including to fund additional product development and potential commercialization activities.
Pursuant to the rights offering, the Company will distribute subscription rights, at no charge, to each record holder of its common stock as of April 21, 2009, the record date for the rights offering, except with respect to shares of common stock held by the BioMimetic 401K Plan. Each subscription right represents the right to purchase 0.1017 shares of the Company’s common stock at a price of $8.50 per share, and may be exercised at any time prior to 5:00 p.m. New York City time on June 15, 2009, the scheduled expiration date and time of the rights offering (unless extended). The Company has the option of extending the expiration of the rights offering until June 30, 2009, but has no current intention of doing so.
The rights offering will be conducted via the registration statement. The Company will mail rights offering materials, including a prospectus and a subscription rights certificate, to the record holders on or about June 8, 2009. The Company will distribute 19,659,525 subscription rights in the aggregate and the rights are exercisable for up to 2,000,000 shares of common stock, in the aggregate. The subscription rights are not transferable and will be evidenced by subscription rights certificates. Fractional shares of the Company’s common stock will not be issued. As previously announced by the Company, the Company entered into a standby purchase agreement with Novo A/S, an existing stockholder of the Company, pursuant to which Novo A/S has agreed to backstop the rights offering by agreeing to purchase up to $15 million of common stock, if the stock is not purchased by other current stockholders. The securities purchased by Novo A/S will be purchased in a private placement.
