BioStem Technologies has secured access to up to $40 million through a committed equity facility with Roth Principal Investments, providing the regenerative medicine company with additional capital flexibility as it expands its commercial and clinical operations.
Roth Principal Investments is an affiliate of CR Financial Holdings, the holding company for Roth Capital Partners. Under the agreement, BioStem can issue and sell up to $40 million of common stock to Roth at BioStem’s discretion, subject to certain conditions.
The structure gives BioStem the ability to access capital over time rather than requiring the company to issue the entire amount immediately. BioStem said it is under no obligation to use the full facility and intends to use any net proceeds for working capital and general corporate purposes.
Access to the facility is subject to the filing and effectiveness of a registration statement covering the resale of shares issued to Roth.
Under applicable Nasdaq rules, BioStem generally cannot issue shares representing more than 19.99% of the shares outstanding immediately before execution of the agreement unless it obtains shareholder approval or satisfies applicable minimum-price requirements.
The financing provides another potential source of growth capital as BioStem builds its regenerative medicine business.
The company develops, manufactures and commercializes allograft products derived from perinatal tissue. Its proprietary processing technologies include BioRetain, CryoTek and SteriTek, which are designed to preserve natural tissue properties for clinical applications.
BioStem’s product portfolio includes Neox, Clarix, VENDAJE and American Amnion, with its allografts used by clinicians across multiple specialties.
The committed equity structure could give BioStem greater flexibility to time future capital raises around its operating needs and market conditions while supporting continued commercial expansion.
