3D bioprinter material developer CollPlant (NASDAQ:CLGN) has confirmed an investment of $5.5 million. Provided by a group of investors with special interest in the 3D printing industry and Ami Sagi, the company’s largest shareholder, the deal was confirmed September 9, 2019. $3.5 million in convertible loans was provided by the anonymous investor group, whereas the remaining $2 million were purchased by Sagi through non-brokered private placement. Following the execution of a licence and/or a co-development agreement with a strategic business partner, Sagi will also offer an additional $1 million investment.
“This fund raising is intended to support the advancement of our pipeline in the fields of medical aesthetics and 3D bioprinting of tissues and organs,” commented CollPlant CEO, Yehiel Tal. “[…] We are very pleased to have entered into this transaction with Mr. Sagi and the other investors.”
CollPlant 3D bioprinting
Primarily a regenerative medicine company, CollPlant’s proprietary development is the rhCollagen (recombinant human collagen) product. A 3D printable bioink, rhCollagen acts as a support material for biological matter, i.e. human stem cells. It is plant based, and harvested from genetically engineered tobacco plants.
Though application of this material is still in its rudimentary stages, several decades away from being able to provide a fully-functional 3D printed organ, CollPlant has undertaken a number of projects to bring its ambitions to fruition.
Dated October 2018, Maryland-based biotechnology firm United Therapeutics Corporation has a licensing agreement with CollPlant to use its bioink technology for the development of 3D bioprinted lung models. Internally, the company is now testing its 3D bioprinting technology as a viable option for breast implants. According to Tal, the company is also currently “focused on facilitating our development programs of dermal fillers,” which the new investment will help to fund.
About the investors
The majority of investors in CollPlant’s recent investment round have chosen to remain anonymous, and CollPlant seems to be the main investment in Sagi’s current investor profile. Under the terms of the agreement with CollPlant, all parties will receive three-year warrants to purchase up to an aggregate of 1,625,000 ADSs, exercizable at a price of $4.00 per ADS.
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Featured image shows a graphic demonstration of 3D bioprinting with rhCollagen bio-ink. Image via CollPlant.