Ortec Receives Additional $5 Million Non Equity-Capital from Paul Capital Royalty Acquisition Fund.Business Editors & Health/Medical Writers
NEW YORK--(BW HealthWire)--Jan. 29, 2002
Ortec Also Secures $1.3 Million of Equipment Financing from
Leading Financial Institution
Ortec International, Inc. (NASDAQ NASDAQ
in full National Association of Securities Dealers Automated Quotations
U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ORTC ORTC Old Republic Title Company
ORTC Operational Readiness Training Complex ), a tissue engineering company, announced today that, under the terms of a previously announced $15 million non-equity financing, consummated in August 2001, it has received a second $5 million payment from Paul Capital Royalty Acquisition Fund (Paul Royalty).
The remaining $5 million would be available to Ortec at its sole option and upon its meeting specified milestones.
As previously announced, in addition to the $15 million, an additional $10 million would be available from Paul Royalty at Ortec's and Paul Royalty's mutual consent and upon Ortec achieving certain regulatory milestones.
In an unrelated matter, Ortec announced that it has secured a $1.3 million lease line of credit from a leading multi-billion dollar financial institution. The lease line of credit is available to Ortec for the acquisition of additional manufacturing, laboratory, and other equipment required to expand its manufacturing capacity, increase efficiencies, and decrease production costs of its product, OrCel, a biological active wound healing wound healing Physiology The repair of a wound Steps Inflammation, repair and closure, remodeling, final healing; repair of incisions may be either simple–'clean' wounds with little loss of tissue heal by 'primary intention', or 'dirty' wounds heal by agent.
Ron Lipstein, Vice Chairman and CFO See Chief Financial Officer. , "We are pleased that we were able to obtain this financing from a major financial institution. We believe non-dilutive financing is very cost effective and provides us with additional financial resources to continue to execute our commercialization plan."
About Ortec International, Inc.
Ortec International, Inc. is a tissue-engineering company involved in the commercialization of a proprietary and patented technology to stimulate the repair and regeneration of human tissue. Ortec's current focus is the application of OrCel to heal chronic and acute wounds. In addition to having received FDA FDA
Food and Drug Administration
n.pr See Food and Drug Administration.
n.pr the abbreviation for the Food and Drug Administration. approvals during 2001 for OrCel for treatment of Epidermolysis Bullosa Epidermolysis Bullosa Definition
Epidermolysis bullosa (EB) is a group of rare inherited skin diseases that are characterized by the development of blisters following minimal pressure to the skin. and donor sites in burn patients, Ortec is also pursuing FDA approvals for venous and diabetic skin ulcers and is in the midst Adv. 1. in the midst - the middle or central part or point; "in the midst of the forest"; "could he walk out in the midst of his piece?"
midmost of clinical trials for these indications. Overall, these indications are estimated to be in excess of $1 billion. Ortec believes, as well, that its platform technology extends to the regeneration of other human tissue, such as tendons, ligaments, cartilage, bone, muscle and blood vessels Blood vessels
Tubular channels for blood transport, of which there are three principal types: arteries, capillaries, and veins. Only the larger arteries and veins in the body bear distinct names. . For more information, visit Ortec's website at http://www.ortecinternational.com.
Certain statements made in this news release that express the belief, potential anticipation or expectation, as well as other statements which are not historical fact, and statements relating to the clinical trials and their results, design, FDA product approvals or other marketing approvals, features, functionality and performance insofar in·so·far
To such an extent.
Adv. 1. insofar - to the degree or extent that; "insofar as it can be ascertained, the horse lung is comparable to that of man"; "so far as it is reasonably practical he should practice as they may apply prospectively, are "forward looking" statements within the meaning and pursuant to the Safe Harbor Safe Harbor
1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated.
2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.
When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995 and involve risks and uncertainties. The Company's actual results may differ significantly from the results discussed in this news release or in other "forward looking" statements presented by management. Factors that might cause such a difference include, but are not limited to, development by the Company's competitors of new technologies or products that are more effective than the Company's, risks of failure of clinical trials, dependence on and retention of key personnel, protection of proprietary technology, compliance with U.S. Food and Drug Administration regulations, continued availability of raw material for the Company's products, availability of product liability insurance in the event of commercialization of the Company's products, ability to effect transition from pilot-scale manufacturing to large-scale commercial production of products, uncertainty as to the availability of additional capital on acceptable terms, if at all, and the demand for the Company's products, if and when commercially available.