Elutia Completes Divestiture of Orthobiologics Business Unit for Cash Proceeds of Up to $35 Million
09 November 2023 - 2:30PM
Elutia Inc. (Nasdaq: ELUT) (“Elutia”), a company pioneering
drug-eluting biomatrix products, today announced it completed the
divestiture of its Orthobiologics business unit to Berkeley
Biologics LLC, a wholly owned subsidiary of GNI Group Ltd.
The transaction enables Elutia to strategically
focus on its proprietary drug-eluting biomatrix platform and
provides the Company with cash proceeds of up to $35 million,
comprised of upfront payments no later than November 17, 2023 of
$15 million plus potential earnout payments of up to $20 million
over a five-year period. Combined proceeds with the previously
announced September 2023 private placement potentially top $60
million.
“With the closing of this transaction, Elutia is
now fully focused on our high-growth biomatrix product platforms,
including our near-term blockbuster opportunity with CanGaroo®RM,”
said Dr. Randy Mills, President and Chief Executive
Officer of Elutia. “The proceeds from this transaction, coupled
with the September financing, should have us well-capitalized to
advance our proprietary drug-eluting biomatrix platform. And all of
this is made possible by the outstanding work of our team, which
continues to execute the Elutia plan with relentless drive and
focus.”
Mizuho Securities USA LLC acted as financial
advisor and Kilpatrick Townsend & Stockton LLP acted as legal
advisor to Elutia in connection with this transaction.
About Elutia
Elutia develops and commercializes biologic
products to improve compatibility between medical devices and the
patients who need them. With a growing population in need of
implantable technologies, Elutia’s mission is humanizing medicine
so patients can thrive without compromise. For more information,
visit www.Elutia.com.
Forward-Looking Statements
This press release contains “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Forward-looking statements can be identified
by words such as “projects,” “may,” “will,” “could,” “would,”
“should,” “believes,” “expects,” “anticipates,” “estimates,”
“intends,” “plans,” “potential,” “promise” or similar references to
future periods. All statements contained in this press release that
do not relate to matters of historical fact should be considered
forward-looking statements, including any statements and
information concerning our expectations for receiving the upfront
and earnout payments under our agreement with Berkeley Biologics
LLC, the potential success of our CanGaroo®RM biomatrix product
platform, and the sufficiency of our capitalization to advance our
proprietary drug-eluting biomatrix platform. Forward-looking
statements are based on management’s current assumptions and
expectations of future events and trends, which affect or may
affect our business, strategy, operations or financial performance,
and actual results may differ materially from those expressed or
implied in such statements due to numerous risks and uncertainties.
Forward-looking statements are inherently subject to risks and
uncertainties, some of which cannot be predicted or quantified, and
other important factors that may cause actual results, performance
or achievements to differ materially from those contemplated or
implied in this press release, including, but not limited to: risks
associated with shifting focus to our drug-eluting biomatrix
solutions in the cardiovascular and breast reconstruction areas and
away from our Orthobiologics business; risks regarding the ability
to successfully execute or realize the anticipated benefits under
our distribution arrangements with LeMaitre Vascular and Sientra;
risks relating to the potential removal of our securities from
listing and registration on the Nasdaq Capital Market; our
inability to generate sufficient revenue to achieve or sustain
profitability; adverse changes in economic conditions and
instability and disruption of credit markets; our ability to
continue as a going concern; our ability to successfully achieve
expected benefits from the divestiture of our Orthobiologics
business; our products and our ability to enhance, expand, develop
and commercialize our product offerings; the impact on our business
of the recall of a single lot of our FiberCel product and the
discontinuation of its sales by our distribution partner;
consequences of our recall of a single lot of one of our viable
bone matrix products and market withdrawal of all of our viable
bone matrix products; our dependence on our commercial partners;
the impact of the bankruptcy of Surgalign Holdings, Inc., a
significant customer of the Company, on our future revenues;
physician awareness of the distinctive characteristics, and
acceptance by the medical community, of our products; the ability
to obtain regulatory approval or other marketing authorizations;
and our intellectual property rights, and other important factors
which can be found in the “Risk Factors” section of Elutia’s public
filings with the Securities and Exchange Commission (“SEC”),
including Elutia’s Annual Report on Form 10-K for the year ended
December 31, 2022, as such factors may be updated from time to time
in Elutia’s other filings with the SEC, including Elutia’s
Quarterly Reports on Form 10-Q, accessible on the SEC’s website at
www.sec.gov and the Investor Relations page of Elutia’s website at
https://investors.elutia.com. Because forward-looking statements
are inherently subject to risks and uncertainties, you should not
rely on these forward-looking statements as predictions of future
events. Any forward-looking statement made by Elutia in this press
release is based only on information currently available and speaks
only as of the date on which it is made. Except as required by
applicable law, Elutia expressly disclaims any obligations to
publicly update any forward-looking statements, whether written or
oral, that may be made from time to time, whether as a result of
new information, future developments or otherwise.
Investors:Matt SteinbergFINN
Partnersmatt.steinberg@finnpartners.com
Elutia (NASDAQ:ELUT)
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