Date: 2015-04-13
Type of information: Fundraising
Company: Angionetics, a newly-formed subsidiary of Taxus Cardium (USA - CA)
Investors: Shenzhen Qianhai Taxus (China)
Amount: $ 3 million
Funding type: equity investment
Planned used: Angionetics is a newly-formed subsidiary of Taxus Cardium, that is focused on the Phase 3 clinical development and commercialization of Generx® [Ad5FGF-4], an angiogenic gene therapy product candidate for the treatment of refractory angina and myocardial ischemia due to cardiac microvascular insufficiency. The proceeds from this Angionetics equity investment will be used to advance the international and United States Phase 3 clinical studies of Generx, for working capital, and transactional expenses to facilitate current plans to advance Angionetics forward as an independent company with direct access to capital markets and strategic partnerships.
Others: * On April 13, 2015, Taxus Cardium Pharmaceuticals announced that it has entered into a binding term sheet with Shenzhen Qianhai Taxus Industry Capital Management, as lead investor, to purchase an equity stake in Angionetics, a newly-formed subsidiary of Taxus Cardium. Under the terms of the agreement, Shenzhen Qianhai Taxus has agreed to acquire 15% of Angionetics' outstanding common stock for an aggregate purchase price of $3,000,000, payable in three tranches to be completed by May 30, 2015. On completion of the purchase, Taxus Cardium has agreed to grant Shenzhen Qianhai Taxus a right of first negotiation for exclusive license agreements for certain Asian markets to fund local country registrations, market and sell the Generx® product candidate, Excellagen®, an FDA-cleared dermal matrix product for advanced wound healing and a delivery platform for biologics and stem cells, and LifeAgain®, an advanced medical data analytics product technology platform. The agreement contemplates that this initial funding is a bridge equity investment to a separate larger financing to be conducted by Angionetics , including a potential registration and public offering of securities. The terms provide for Taxus Cardium to gross up Shenzhen Qianhai Taxus' shares to equate to a 15% interest in Angionetics following any such public offering. It also provides for certain registration rights for the shares purchased by Shenzhen Qianhai Taxus. Shenzhen Qianhai Taxus is an affiliate of Shanxi Taxus Pharmaceuticals which holds approximately 25% of Cardium's outstanding common stock (fully diluted) as a result of a Stock Purchase Agreement dated February 21, 2014.
Therapeutic area: Cardiovascular diseases
