Printer Friendly

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: ORTC), 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 agent.

Ron Lipstein, Vice Chairman and CFO, "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 approvals during 2001 for OrCel for treatment of Epidermolysis Bullosa and donor sites in burn patients, Ortec is also pursuing FDA approvals for venous and diabetic skin ulcers and is in the midst 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. For more information, visit Ortec's website at

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 as they may apply prospectively, are "forward looking" statements within the meaning and pursuant to the Safe Harbor provisions of the Securities 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.
COPYRIGHT 2002 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2002, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Jan 29, 2002
Previous Article:Riverstone Networks CEO Pereira Sees Korea's Investment in Broadband Producing Economic Benefits.
Next Article:Segue Software to Announce Fourth Quarter and Yearly Results On February 5, 2002.

Related Articles
Mezzanine financing becoming more popular.
Ortec Secures Financing.
Sterling American Property closes 4th fund.
W&M Capital Program launches fourth fund.
New chain revolves around AFC financing.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters