Bacterin Closes Private Placement With Total Raise of $9.2 Million

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BELGRADE, Mont., Aug. 5 /PRNewswire-FirstCall/ — Bacterin International Holdings, Inc. (“Bacterin” or the “Company”) (OTC Bulletin Board: BIHI), a developer of anti-infective coatings for medical applications and revolutionary bone graft material, today announced that it has closed its private placement offering raising total gross proceeds of $9.2 million from the sale to accredited investors, including certain of its directors and officers, of shares of its common stock at a purchase price of $1.60 per share, with detachable warrants to purchase one-quarter of one share its common stock (at an exercise price of $2.50 per share) for each share purchased.

In total, Bacterin sold 5,479,895 shares of its common stock and warrants to purchase 1,323,540 shares of its common stock in the private placement, including shares and warrants issued to the placement agents, which brings the Company’s total shares outstanding to approximately 35.6 million (46.5 million shares on a fully diluted basis). Bacterin received gross proceeds of$9,272,329, consisting of (i) $4,026,000 from investors in the initial private placement round that closed on June 30, 2010, which included directors and executive officers of the Company, (ii) $1,764,000 in the private placement round that closed on July 30, 2010, which only included investors who invested in the initial round, and (iii) $3,482,329 from note holders in two earlier bridge financings who converted certain principal and interest outstanding under their notes into shares of common stock and warrants in the private placement at a 10% discount to the purchase price therein, being $1.44 per share, and received warrants with a 10% discounted exercise price of $2.25.  Bacterin intends to use the cash proceeds from the capital raise to repay its remaining bridge notes in the principal amount of approximately $1.85 million and for working capital, including the expansion of its sales force.  Middlebury Securities, LLC, a wholly owned subsidiary of Middlebury Group, LLC acted as the placement agent in connection with the private placement.

Bacterin has scheduled a conference call for Thursday, August 12, 2010 at 10:00 a.m. (ET) to discuss the Company’s financial results for its second quarter ended June 30, 2010, during which management may discuss forward-looking information.  Bacterin intends to issue its earnings release after the market close on August 11, 2010.

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