Biophan Receives $5 Million Credit Facility Bridging to $30 Million SBI Financing; Biomed Sells Shares to Provide Interim Funding; Biophan CEO Weiner Files Related Form 4
The facility from Biomed will give Biophan access of up to $1.5 million per month as needed. The Biomed facility will bear interest at the rate of 8% per annum and is convertible into shares of Biophan common stock at Biomed's election at a 15% discount to last Friday's market closing price. In addition, Biomed will receive warrants for the purchase of 1,198,630 shares of Biophan common stock at an exercise price that is a 10% premium over last Friday's market closing price. To acquire the capital to supply the credit facility, Biomed sold 4 million shares of Biophan common stock and 1.18 million Biophan warrants in a private transaction. Because under SEC regulations, beneficial ownership of Biomed's assets is attributed to Mr. Weiner, he has reported the transactions on a Form 4 filed today with the SEC.
“The $5 million credit facility is convertible and carries warrants, allowing Biomed to continue to be a long term investor in Biophan”
"The $5 million credit facility is convertible and carries warrants, allowing Biomed to continue to be a long term investor in Biophan," said Michael Weiner. "Biomed stands behind Biophan and is willing to sell some of its holdings in order to provide Biophan with interim financing so Biophan's momentum is undeterred. Weiner continued, "Overall, this credit facility is a very positive endorsement of our belief in Biophan's long-term potential."
About Biophan Technologies
Biophan develops and markets cutting-edge technologies designed to make biomedical devices safe and image compatible with the magnetic resonance imaging (MRI) environment. The Company develops technologies that enable medical systems such as pacemakers, interventional surgical devices such as catheters and guidewires, and implants such as stents to be safely and/or effectively imaged under MRI. Biophan is developing these same technologies to provide new MRI contrast agents. Other applications include drug delivery and power systems which derive energy from body heat. Biophan also has an equity position in MYOTECH, LLC to assist in development and commercialization of an MRI compatible cardiac assist device - the MYO-VAD(TM). Committed to growth through innovation and developmental leadership, Biophan and its licensors now hold a total of 157 U.S. patents, licenses, or applications, plus international applications. This total includes 48 issued U.S. patents, 7 recently-allowed applications that will issue as patents in the near future, and 102 pending applications at various stages of examination at the U.S. Patent and Trademark Office. The patents cover areas including nanotechnology (nanomagnetic particle coatings), medical device designs, radio frequency filters, polymer composites, thermoelectric materials which generate electricity from body heat, and photonics. Biophan has joint development and licensing agreements with Boston Scientific and NASA's Ames Center for Nanotechnology. Biophan's goal is to make all biomedical devices capable of safely and successfully working with MRI, and delivering other technologies which will improve quality of life. Biophan is also listed on the Frankfurt Stock Exchange under the ticker symbol BTN. For more information, please visit www.biophan.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements included in this press release may constitute forward-looking statements within the meaning of applicable securities laws. These statements reflect what Biophan anticipates, expects, or believes may happen in the future. Biophan's actual results could differ materially from the outcome or circumstance expressed or implied by such forward-looking statements as a result of a variety of factors including, but not limited to: Biophan's ability to develop its technologies; the approval of Biophan's patent applications; the successful implementation of Biophan's research and development programs; the ability of Biophan to demonstrate the effectiveness of its technology; the acceptance by the market of Biophan's technology and products incorporating such technology, the ability of Biophan to effectively negotiate and enter into contracts with medical device manufacturers for the licensing of Biophan's technology; competition; the ability of Biophan to raise capital to fund its operating and research and development activities until it generates revenues sufficient to do so; and the timing of projects and trends in future operating performance, as well as other factors expressed from time to time in Biophan's periodic filings with the Securities and Exchange Commission (the "SEC"). As a result, this press release should be read in conjunction with Biophan's periodic filings with the SEC which are incorporated herein by reference. The forward-looking statements contained herein are made only as of the date of this press release, and Biophan undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.