New Analyst Review: Cytomedix (OTC BB: CMXI)
in a $16M stock deal that broadens the firm’s regenerative therapies
Aldagen Acquisition Terms Update:http://www.scimitarequity.com/upload/CMXI518226.OB-acquisition-aldagen518226.pdf
Under the terms of the agreement, CMXI.OB issued Aldagen shareholders preferred shares valued at $16M, giving Aldagen an approximately 17.3% stake in CMXI.
- As part of the transaction, some Aldagen investors purchased $5M of CMXI common stock in a private placement. Aldagen stands to gain additional CMXI shares; up to 20.3M based on milestones tied to the firm’s P2 ischemic stroke clinical trial.
- Under the terms of the deal, 80% of those milestones are tied to success in that trial and contingent consideration issuable only upon a favorable clinical efficacy signal in the P2 trial.
- At the closing, CMXI.OB issued 135,398 newly designated Cytomedix Series E preferred shares to Aldagen shareholders. Pro forma for the conversion of these shares to common stock, as set forth in the designations documents for the Series E preferred stock, Aldagen shareholders will own approximately 17.3% of CMXI’s common shares outstanding after the concurrent conversion and/or redemption of all existing Cytomedix preferred shares.