An affiliate of Milestone Scientific, which designs and patents innovative injection technology, Milestone Medical Inc., sold an additional $1.5 million of its common stock in a private placement to one of the largest mutual fund management companies in Poland. The company has raised a total of $3 million from European investors.
Milestone Scientific Inc. (OTCQB: MLSS), a leading medical research and development company that designs and patents innovative injection technology, today announced its Milestone Medical Inc. subsidiary has sold an additional $1.5 million of its common stock in a private placement to one of the largest mutual fund management companies in Poland (with assets under management in excess of USD $5 billion).
Closing of the transaction is subject to listing of the shares on the New Connect Market of the Warsaw Stock Exchange. WDM acted as offering agent and leading financial advisor on the transaction. As a result of this second tranche to the financing with European investors announced on October 30, 2013, Milestone Medical Inc. has raised a total of $3.0 million from European investors, representing a post-money valuation of approximately $33.0 million.
Leonard Osser, Chief Executive Officer of Milestone Scientific, stated, “We appreciate the continued support from European investors. The $3.0 million to be raised on completion of this financing will help accelerate the launch of our first two medical instruments, epidural and intra-articular, which are based on our patented Dynamic Pressure Sensing® system (DPS®). This financing further validates our strategy of bringing our precision injection technology to the medical marketplace, while minimizing dilution to shareholders.”
Prior to the financing, Milestone Scientific Inc. owned 50% of Milestone Medical Inc. (10 million shares out of a total 20 million shares issued and outstanding). As a result of this financing, Milestone Medical Inc. will issue an additional 2 million shares to European institutional and other investors (11 entities) at $1.50 per share, representing a post-money valuation of approximately $33.0 million.
Shares of Milestone Medical, Inc. are expected to begin trading on the Warsaw Stock Exchange, the largest national stock exchange in Central and Eastern Europe and one of the fastest-growing exchanges in Europe, in late November 2013.
WDM is Central and Eastern Europe’s leading small cap investment bank. It has been listed on the Warsaw Stock Exchange since 2007. Over the past 6 years, WDM has taken over 50 companies public on the Warsaw Stock Exchange. It has raised over $150,000,000 in private equity, venture capital and public financing for its clients. WDM’s investment management subsidiary, WDM Capital, manages a growing portfolio of some of the region’s most promising micro caps. WDM’s United States subsidiary, WDM Capital USA, provides access to CEE financing and investment opportunities for North American clients and North American financing and market access for CEE clients. For more information visit: www.wdmcapital.com.
About Milestone Scientific Inc.
Milestone Scientific Inc. (MLSS) is a leading medical research and development company that designs and patents innovative injection technology. Milestone’s computer-controlled systems make injections precise, efficient, and virtually painless. For more information please visit our website: www.milestonescientific.com. The epidural and intra-articular medical instruments are currently investigational in the US.
Safe Harbor Statement
This press release contains forward-looking statements regarding the timing and financial impact of Milestone’s ability to implement its business plan, expected revenues and future success. These statements involve a number of risks and uncertainties and are based on assumptions involving judgments with respect to future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond Milestone’s control. Some of the important factors that could cause actual results to differ materially from those indicated by the forward-looking statements are general economic conditions, failure to achieve expected revenue growth, changes in our operating expenses, adverse patent rulings, FDA or legal developments, competitive pressures, changes in customer and market requirements and standards, and the risk factors detailed from time to time in Milestone’s periodic filings with the Securities and Exchange Commission, including without limitation, Milestone’s Annual Report for the year ended December 31, 2012. The forward-looking statements in this press release are based upon management’s reasonable belief as of the date hereof. Milestone undertakes no obligation to revise or update publicly any forward-looking statements for any reason.