Ocata Therapeutics Secures $10 Million in Debt Financing
August 19 2015 - 9:00AM
Business Wire
Ocata Therapeutics, Inc. (NASDAQ: OCAT), a leader in the field
of Regenerative Ophthalmology™, today announced that it has entered
into a secured term loan facility of up to $10 million with Silicon
Valley Bank. Ocata received initial funding of $6 million and has a
conditional option to receive an additional $4 million upon the
successful completion of certain clinical and corporate milestones.
Ocata intends to use the proceeds for general corporate purposes
including the initiation of the Phase 2 dry age-related macular
degeneration (AMD) and pivotal Stargardt’s macular degeneration
(SMD) clinical studies and the advancement of its promising
pre-clinical programs.
“We are pleased to secure this additional, non-dilutive
financing from a leading debt lender, with a history of supporting
emerging biotechnology companies,” said Ted Myles, Chief Financial
Officer and Chief Operating Officer. “The addition of this debt
facility to the proceeds from our recently completed equity
offering provides us with additional flexibility as we initiate our
dry AMD Phase 2 safety trial, planned for this quarter and our SMD
pivotal study, planned for the fourth quarter of this year.”
Katherine Andersen, Managing Director of Silicon Valley Bank
commented, “We are pleased to partner with the Ocata Therapeutics
team, which is driving important medical advancements to treat
vision loss. Our aim is to provide Ocata with the right financing
and global services as the company continues to advance its
exciting programs.”
About Ocata Therapeutics, Inc.
Ocata Therapeutics, Inc. is a clinical stage biotechnology
company focused on the development and commercialization of
Regenerative Ophthalmology therapeutics. Ocata’s most advanced
products are in clinical trials for the treatment of Stargardt’s
macular degeneration, dry age-related macular degeneration, and
myopic macular degeneration. Ocata’s intellectual property
portfolio includes pluripotent stem cell platforms – hESC and
induced pluripotent stem cell (iPSC) – and other cell therapy
research programs. For more information, visit www.ocata.com.
About Silicon Valley Bank
For more than 30 years, Silicon Valley Bank (SVB) has helped
innovative companies and their investors move bold ideas forward,
fast. SVB provides targeted financial services and expertise
through its offices in innovation centers around the world. With
commercial, international and private banking services, SVB helps
address the unique needs of innovators. Forbes named SVB one of
America's best banks (2015) and one of America's best-managed
companies (2014). Learn more at svb.com.
Silicon Valley Bank is the California bank subsidiary and
commercial banking operation of SVB Financial Group (NASDAQ: SIVB),
and a member of the FDIC. Silicon Valley Bank and SVB Financial
Group are members of the Federal Reserve System.
About Age-related Macular Degeneration
Age-related macular degeneration is the leading cause of vision
loss in people over the age of 50. Every year in the USA there are
1.8 million patients newly diagnosed with dry AMD which occurs when
light-sensitive photoreceptor cells in the macula, located in the
center of the retina, slowly break down, causing vision loss as a
result. Photoreceptor breakdown is a consequence of loss or damage
to the RPE layer. As the disease progresses, patients may have
difficulty reading and recognizing faces. There is currently no
proven medical therapy for dry AMD and the projected number of
people worldwide with age-related macular degeneration in 2020 is
196 million, increasing to 288 million in 2040 underscoring the
urgent need for new treatments.
About Stargardt’s Disease
Stargardt’s macular degeneration is a form of juvenile macular
degeneration that affects vision in children and young adults
between the ages of six and 20, with a prevalence of approximately
one in 10,000 people in the United States. It is an orphan disease
and loss of vision is an inevitable aspect of SMD, with more than
half of the patients experiencing vision loss in the range of
20/200-20/400. Like dry AMD, it occurs as a result of damage to the
RPE layer and there are no treatments currently approved to prevent
or slow the vision loss associated with SMD.
Forward-Looking Statements
All statements, other than historical facts, contained in this
news release, including statements regarding the initiation or
expected timing of Ocata’s planned clinical trials, the release of
top line and other data from such trials, the ability to finance
such trials, the expected release of data regarding Ocata’s
preclinical pipeline, and any other statements about Ocata’s future
expectations, beliefs, goals, plans, results or prospects expressed
by management constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Any statements that are not statements of historical fact
(including statements containing the words “will,” “believes,”
“plans,” “anticipates,” “expects,” “estimates,” and similar
expressions) should also be considered to be forward-looking
statements. There are a number of important factors that could
cause actual results or events to differ materially from those
indicated by such forward-looking statements, including: the fact
that Ocata has no product revenue and no products approved for
marketing; Ocata’s limited operating history; Ocata’s need for and
limited sources of future capital; potential failures or delays in
obtaining regulatory approval of products; risks inherent in the
development and commercialization of potential products; reliance
on new and unproven technology in the development of products; the
need to protect Ocata’s intellectual property; the challenges
associated with conducting and enrolling clinical trials; the risk
that the results of clinical trials may not support Ocata’s product
candidate claims; the risk that physicians and patients may not
accept or use Ocata’s products, even if approved; Ocata’s reliance
on third parties to conduct its clinical trials and to formulate
and manufacture its product candidates; and economic conditions
generally. Additional information on potential factors that could
affect our results and other risks and uncertainties are detailed
from time to time in Ocata’s periodic reports, including the Annual
Report on Form 10-K for the fiscal year ended December 31, 2014.
Forward-looking statements are based on the beliefs, opinions, and
expectations of Ocata’s management at the time they are made, and
Ocata does not assume any obligation to update its forward-looking
statements if those beliefs, opinions, expectations, or other
circumstances should change. Forward-looking statements are based
on the beliefs, opinions, and expectations of Ocata’s management at
the time they are made, and Ocata does not assume any obligation to
update its forward-looking statements if those beliefs, opinions,
expectations, or other circumstances should change. There can be no
assurance that Ocata’s future clinical trials will be successful or
that the results of previous clinical studies will lead to
commercialization or products or therapies.
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version on businesswire.com: http://www.businesswire.com/news/home/20150819005233/en/
Investors:Westwicke PartnersJohn Woolford,
443-213-0506john.woolford@westwicke.comorPress:Russo PartnersDavid
Schull, 858-717-2310david.schull@russopartnersllc.com
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