Bacterin International Holdings, Inc. has secured access to an additional $4 million loan from ROS Acquisition Offshore (ROS).
The company entered into the loan agreement on March 6, 2014 and will pay an interest rate of LIBOR (London Interbank Offered Rates) plus 12.13%, subject to a LIBOR floor rate of 1%. Bacterin also agreed previously to pay a royalty of 1.75% on the first $45, 000, 000 of annual net sales, plus 1.0% of annual net sales in excess of $45, 000, 000. As additional consideration for ROS making the $4 million available, the company agreed to issue 1, 500, 000 shares of common stock to an affiliate of ROS.
Bacterin has the right to repurchase the loan and royalty interest at amounts to be determined based on the date of repurchase and the amount of prior principal, interest and royalty payments. The company plans to use the proceeds for working capital and general corporate purposes.
Bacterin Products
The company, located in Belgrade, Montana, develops bioactive coatings for medical applications and bone graft material, processes and markets biologic allografts for transplantation. Bacterin’s biologic scaffolds, OsteoSponge, OsteoSponge SC and OsteoWrap, are made from demineralized bone that is malleable and flexible, which enables efficient and precise handling. It also markets BacFast and OsteoLock, which are used in spine surgery, designed to minimize graft back-out, and increase osteoinductivity. Bacterin’s latest allograft, OsteoSelect DBM Putty is distributed as a sterile product, with osteoinductivity testing completed on every lot after terminal sterilization.
Bacterin’s Medical Device and Coatings Division focuses on the development of bioactive coating technologies for implantable devices. Its core competency is anti-microbial coatings designed to reduce potential infections associated with implants. This division also manages surgical kits necessary to support implantation of products processed by Bacterin’s Biologics Division. Bacterin operates a 32, 000 sq. ft., state-of-the-art, fully compliant and FDA registered facility, equipped with five “Class 100” clean rooms.
