May 15, 2017 – Scottsdale, AZ – Lattice Biologics Ltd. (TSX-V: LBL) (OTCQB: LBLTF) (“Lattice Biologics” or the “Company”) is pleased to announce that it has closed the previously announced non-brokered private placement of Units (“Private Placement“) in five tranches. As disclosed on April 4, 2017, the Company raised aggregate gross proceeds of approximately US$370,000.
The net proceeds from the Private Placement will be used for general working capital to meet the rise in demand for the Company’s products, support the development of next generation products focused on advancing tissue repair and pain relief, and other research and development efforts.
Shares for Services:
Lattice Biologics also announces that it has obtained TSX Venture Exchange (“TSXV“) approval to issue 62,440 common shares of the Company (“Shares“) to an individual as compensation for certain services rendered to the Company during March and April of 2017.
The Shares will be issued pursuant to the terms of the Shares for Services Agreement (announced August 8, 2016) at a deemed price of Can.$0.194. The number of Shares was determined by using the volume weighted average price of the Company’s common shares on the TSXV for the five business days prior to submission for the TSXV for approval of the issuance. The Shares will be subject to a four-month resale restriction.
Consistent with its strategy to strengthen its balance sheet, the Company announced on April 26, 2017 an agreement to reduce the sales royalty payable on the Company’s revenue, eliminate approximately US$2.8 million of debt, and extend the maturity date and lower the interest rate under its secured note from 12.5% to 4.244% (the “Transaction“). This Transaction will significantly reduce the Company’s royalty and interest payment obligations and is a key step in positioning the Company for long-term success.
Lattice Biologics Ltd.
Chief Executive Officer
Telephone No: (480) 563-0800
About Lattice Biologics Ltd.:
Lattice Biologics Ltd. is an emerging precision medicine leader in the field of cellular therapies and tissue engineering, with an emphasis on bone, skin, and cartilage regeneration. As a manufacturer of the highest quality allografts, Lattice is focused on next generation products to improve surgical outcomes.
Versatile allografts for a variety of surgical applications:
- Enhancing fusion in spine surgery
- Enhancing breast reconstruction post mastectomy for breast cancer patients
- Sports medicine indications, including ACL repair
- Promotion of bone regeneration in foot and ankle surgery
- Promotion of cranial healing following neurosurgery
- Enhancing wound repair in burn victims
- Subchondral bone defect repair in knee and other joint surgeries
The Company is currently exploring new technologies in regenerative and personalized medicine:
- All natural amniotic fluid supplement for arthritic joints
- Personalized Cancer Diagnostics – revolutionary high-throughput precision chemotherapy screening
Lattice Biologics operates headquarters, laboratory and manufacturing facilities in Scottsdale, Arizona as well as offices in Toronto Ontario. The Company maintains all necessary licensures to process and sell its tissue engineered products within the U.S. and internationally. This includes Certificates to Foreign Governments from the U.S. Food and Drug Administration (FDA) and registrations for 29 countries, which allow the export of bone, tendon, meniscus, ligament, soft tissue, and cartilage products outside of the U.S.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement on Forward-Looking Information:
Certain information contained in this news release constitutes “forward-looking statements” within the meaning of the ‘safe harbour’ provisions of Canadian securities laws. All statements herein, other than statements of historical fact, are to be considered forward looking. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “potential”, “future”, “expected”, “could”, “possible”, “goal”, “intends”, “will” or similar expressions. Forward-looking statements in this news release include, without limitation: information pertaining to the Company’s strategy, plans, or future financial performance, such as statements with respect to the Transaction, future revenues or products, and other statements that express management’s expectations or estimates of future performance. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking statements. Such risks include but are not limited to: the risk that the Company may not be able to generate sufficient cash to service its indebtedness and uncertainty regarding the ability to consummate the Transaction.
Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by management as of the date such statements are made, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The factors and assumptions that could prove to be incorrect, include, but are not limited to: that market prices will be consistent with expectations, the continued availability of capital and financing, and that general economic, market and business conditions will be consistent with expectations. The forward-looking statements are not guarantees of future performance. We disclaim any obligation to update or revise any forward-looking statements, except as required by law. Readers are cautioned not to put undue reliance on these forward-looking statements.