Advertisement
Aside from the sales force expansion and potentially a broadened licenseagreement relating to MEDIHONEY, net proceeds from the transaction will bealso used for working capital as well as for general corporate purposes.Pending such uses, the proceeds are expected to temporarily pay down theCompany's existing revolving credit facility. The offering was conducted inreliance on Section 4(2) of the Securities Act of 1933, as amended, and Rule506 promulgated there under.
Advertisement
Chairman and CEO Ed Quilty commented, "MEDIHONEY has the potential toimprove the quality of life for people with hard-to-heal wounds that are aresult of diabetes, vascular insufficiencies, and pressure ulcers -- the baneof nursing home patients. We also believe it will play an important rolearound the globe as clinicians look for more effective and less toxic ways todeal with the onslaught of 'superbugs' such as MRSA. The proceeds from thisprivate placement will help ensure that we achieve our key strategicinitiatives -- to expand our sales force more rapidly and to maximize ourgrowing success with the MEDIHONEY brand."
The private placement is set to fund on April 2, 2008. Quilty emphasizedthat the Company continues to self-fund its research and product developmentcosts on all other products in its product line, and does not anticipate afurther need for finances beyond this one-time push for MEDIHONEY. "The timeis right for MEDIHONEY," he said, "and we decided not to wait."
The Company plans to announce results for its 4th quarter and year endedDecember 31, 2007, this morning as well.
About Derma Sciences
Derma Sciences is a global manufacturer and marketer of advanced wound-care products. Its key product, MEDIHONEY, is sold throughout the world byDerma Sciences and Comvita New Zealand -- the licensor of the patented honey-based technology -- and is the leading brand of honey-based dressings for themanagement of wounds and burns. The product has been shown to be effective ina variety of wounds and burns, and was recently the focus of two positivelarge-scale randomized controlled studies on leg ulcers. For more informationabout Derma Sciences, Inc., visit its home page on the Internet athttp://www.dermasciences.com.
Forward-looking Statements
Statements contained in this release that are not statements of historicalfact may be deemed to be forward-looking statements. Without limiting thegenerality of the foregoing, words such as "may," "will," "expect," "believe,""anticipate," "intend," "could," "estimate" or "continue" are intended toidentify forward-looking statements. Readers are cautioned that certainimportant factors may affect the Company's actual results and could cause suchresults to differ materially from any forward-looking statements which may bemade in this release or which are other