Fibrocell Science Inc. (OTC: FCSC) initiated a private stock sale on Monday – restricted to institutional investors and high-net-worth individuals – to raise $45 million. The company also formed a partnership to further develop its laViv cell therapy technology.
Fibrocell will sell 450 million shares of common stock at the rate of 10 cents per share. At the end of the deal, outstanding Series D and E convertible preferred stock will change into common stock, thus leaving no outstanding preferred stock.
Fibrocell’s laViv is, to date, the only FDA-approved cell therapy technology in aesthetic dermatology, launched in 2011 to address wrinkles. It uses a process of extracting and multiplying the patient’s fibroblasts (collagen-producing skin cells), and many millions of these cells are reinjected into the patient.
Presently, Fibrocell is also working on creating autologous cell therapies for other aesthetic, medical, and scientific applications.
Fibrocell formed the partnership with Intrexon Corp., a Blacksburg, Virginia-based synthetic biology company. Intrexon has created proprietary technologies to produce advanced genetically and non-genetically modified autologous fibroblasts and dermal cells.
Fibrocell will pay Intrexon $3.3 million in common stock for access to the technology. Should any projects materialize that use Intrexon’s technology, Fibrocell will also pay quarterly cash royalties.