MONTREAL, Dec. 3, 2020 /PRNewswire/ – Ortho Regenerative Technologies Inc. (CSE: ORTH) (OTCQB: ORTIF) (“Ortho RTI” or the “Company“), an emerging orthobiologics company focused on the development of novel soft tissue repair regenerative technologies, announced today that it has completed a non-brokered private placement of secured non-convertible debenture units for gross proceeds of $3.0 million (the “Offering“).
“We would like to thank all contributors to this private placement, including $350,000 from insiders and employees, and with a special thanks to a long-time shareholder from Leede Jones Gables, whose bold contribution to this non-dilutive financing helps to solidly position the Company with the resources to continue executing and delivering multiple important milestones over the coming months”, said Claude LeDuc, CEO of Ortho RTI. “Our IND filing will be ready in the coming weeks and we are confident to submit to the FDA early January 2021. Furthermore in 2021, the start of patient enrolment in the US Rotator Cuff Tear repair clinical trial and other ongoing development programs will continue transforming the company and increasing value for shareholders.”
The Company issued 3,000 secured non-convertible debenture units (the ‘Debenture Units“) at a price of $1,000 per Debenture Unit for total gross proceeds of $3.0 million. Each Debenture Unit consists of one 3-year, 10% secured non-convertible debenture of the Company in the principal amount of $1,000 (each a “Debenture“) and 500 Class “A” share purchase warrants (each a “Warrant“). Each Warrant will entitle the holder thereof to purchase one Class “A” of the Company (each a “Share”) at an exercise price of $0.75 at any time up to 36 months following the closing date of the Offering (the “Closing Date“). 
The Debenture Units will be subject to a statutory hold period under the applicable securities laws and in such case the certificates evidencing the securities will bear a legend to that effect, as applicable. The Company has paid $127,500 in commissions and issued 170,850 broker warrants in connection with the Offering, in compliance with applicable securities laws.
The net proceeds from the Offering will be used to fund the following ongoing value creation activities: 1) U.S. IND regulatory submission to secure FDA’s approval to start our Phase I/II US clinical trial on ORTHO-R for rotator cuff tear repair 2) Clinical sites qualification and management 3) Clinical study institutional and Ethical Review Boards approval and administration 4) Clinical sites training 5) Initiating patient enrolment in clinical trial 6) General and administrative corporate purposes.
About Ortho Regenerative Technologies Inc.
Ortho RTI is an emerging orthobiologics company dedicated to the development of novel therapeutic soft tissue repair technologies to dramatically improve the success rate of orthopedic and sports medicine surgeries. Our proprietary RESTORE technology platform is a proprietary muco-adhesive Chitosan-based biopolymer matrix, specifically designed to deliver biologics such as Platelet-Rich Plasma (PRP) or Bone Marrow Aspirate Concentrate (BMAC), to augment and guide the regeneration of new tissue in various musculoskeletal conditions. Ortho-R, our lead Chitosan-PRP hybrid drug/biologic implant combination product, is formulated and designed to increase the healing rates of occupational and sports related injuries to tendons, meniscus and ligaments. Other formulations are being developed for cartilage repair, bone void filling and osteoarthritis treatment. The proprietary Chitosan-PRP combination ORTHO-R implant can be directly applied into the site of injury by a surgeon during a routine operative procedure without significantly extending the time of the surgery and without further intervention. A multi- site US Ortho-R Rotator Cuff Tear Repair Pilot Phase I/II clinical trial is being planned and organized. In parallel, an FDA IND submission is planned for the beginning of 2021. Considering the significant potential of our technology platform, Ortho RTI continues to assess new therapeutic target uses outside of the soft tissue repair field. Further information about Ortho RTI is available on the Company’s website at www.orthorti.com and on SEDAR at www.sedar.com. Also follow us on LinkedIn and Twitter.
Forward-Looking Statements
This news release may contain certain forward-looking statements regarding the Company’s expectations for future events. Such expectations are based on certain assumptions that are founded on currently available information. If these assumptions prove incorrect, actual results may differ materially from those contemplated by the forward-looking statements contained in this press release. Factors that could cause actual results to differ include, amongst others, uncertainty as to the final result and other risks. The Company disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by security laws.
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SOURCE Ortho Regenerative Technologies Inc.