ROCKVILLE, Md., Oct. 12, 2007 (PRIME NEWSWIRE) -- Cytomedix, Inc. (AMEX:GTF) today announced that, having met certain trading conditions, it has issued warrant calls for 100%, or 855,000, of its outstanding Series C-2 warrants.
The exercise price on all warrants is $1.50. Total cash to be received if all warrants are exercised is approximately $1.3 million. The primary condition that the Company needed to meet prior to calling these warrants was for the closing price of the stock to exceed $3.00 for the ten consecutive trading days prior to delivery of the call notice. The Company will remit $.01 for each called warrant that is not exercised.
"The cash proceeds from this warrant call will give us added financial strength at a time when, having just obtained Food and Drug Administration (FDA) clearance for our AutoloGel(tm) System, we are focused on other important milestones for the Company," said Dr. Kshitij Mohan, Cytomedix Chairman and CEO. "We are working diligently toward obtaining a preliminary decision from the Centers for Medicare and Medicaid Services (CMS) regarding coverage for AutoloGel(tm). Also, we are preparing for a product launch of our newly cleared System in Q1 2008."
"At a time when we are the first Company to have completed a randomized, controlled, multi-center, double-blinded, clinical trial for a platelet rich plasma ("PRP") gel system for use on chronic wounds, and the only Company to have an FDA cleared PRP gel system for use on chronic wounds, we will be pleased to obtain this infusion of capital that will further help us in implementing our operational plans. In addition, by calling these warrants our capital structure will be simplified further with no dilution and negligible costs," Dr. Mohan added.
ABOUT CYTOMEDIX
Cytomedix, Inc. is a biotechnology company specializing in processes and products derived from autologous platelet releasates for uses in the treatment of wounds and other applications. The current offering is AutoloGel(tm), an FDA cleared treatment that utilizes an autologous platelet gel composed of multiple growth factors, other platelet releasates, and fibrin matrix. The Company has announced favorable results from its blinded, prospective, multi-center clinical trial on the use of its technology in healing diabetic foot. Additional information regarding Cytomedix is available at: http://www.cytomedix.com
SAFE HARBOR STATEMENT
Statements contained in this press release not relating to historical facts are forward-looking statements that are intended to fall within the safe harbor rule for such statements under the Private Securities Litigation Reform Act of 1995. The information contained in the forward-looking statements is inherently uncertain, and Cytomedix's actual results may differ materially due to a number of factors, many of which are beyond Cytomedix's ability to predict or control, including among others, the success of new sales initiatives, governmental regulation, acceptance by the medical community and competition.
There is no guarantee that all or any particular portion of the called warrants will be exercised before the expiration of the call period and, therefore, there is no guarantee as to what, if any, portion of the potential approximately $1.3 million capital infusion will be realized. There is also no guarantee that this potential capital infusion will be sufficient to allow the Company to successfully launch its product or obtain a favorable preliminary decision from CMS. Furthermore, there is no guarantee that either the product launch or the preliminary decision from CMS will occur within any estimated timeframe.
These forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual events to differ from the forward-looking statements. More information about some of these risks and uncertainties may be found in the reports filed with the Securities and Exchange Commission by Cytomedix, Inc. Except as is expressly required by the federal securities laws, Cytomedix undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason.