A Diagnostics & Imaging Week Staff Report
Biotechnology firm Oragenics (Alachua, Florida) reported that it has closed an investment contract with the Koski Family Limited Partnership to provide new capital for continuing operations. Pursuant to this contract, the Koski Family Limited Partnership agreed to invest $4 million in equity in exchange for 50 million common shares, and warrants to purchase 1million additional shares for 10 cents each. The equity investment consists of $1.5 million in cash at closing and $2.5 million in the form of a non-interest bearing promissory note, to be paid in five equal monthly installments of $500,000 commencing July 31. In addition, the Koski Family Limited Partnership has provided Oragenics with a loan in the amount of $1 million secured by certain assets owned by Oragenics.
Pursuant to the terms of this investment, Richard Welch, Derek Hennecke, and Kevin Sills have resigned from Oragenics board, and have been replaced by David Hirsch, Robert Koski, and Christine Koski. Dr. Jeffrey Hillman remains. David Hirsch has been appointed CEO of Oragenics, going forward.
Oragenics has a number of products in discovery, preclinical and clinical development, with a concentration in the main therapeutic area of infectious diseases, diagnostics, and oral health.
In other financings, AFP Imaging (Elmsford, New York) reported that it has received a $1.5 million investment in growth capital and debt restructuring from BioWave Innovations and ComVest Capital.
In conjunction with the transaction, R. Scott Jones, managing director of BioWave Innovations, will assume the role of chairman of AFP Imaging. David Vozick and Donald Rabinovitch, the founders of the company, will remain on the board and will retain their roles as CEO and president of the company, respectively.
As part of the transaction, Jack Becker and Robert Blatt, current board members of AFP, will retire and Gary Jaggard, fund manager of ComVest Capital will join the company's board.
AFP Imaging is a diagnostic imaging supplier with revenues of about $30 million. It says it is a market leader with products for clinical applications in dental, medical and veterinary medicine under the brand names of AFP, Dent-X, EVA and NewTom.