CollPlant Biotechnologies Raise $5.5 Million

September 23, 2019 by Vanesa Listek 3D Printing 3D Printing Materials Bioprinting Medical 3D Printing

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Regenerative medicine company CollPlant announced new fundraising of $5.5 million in convertible loans intended to support the advancement of their research projects in the fields of medical aesthetics and 3D bioprinting of tissues and organs. On September 9, the company revealed a new private placement with Ami Sagi, CollPlant’s largest shareholder, and other US accredited investors with many years of extensive experience in 3D printing.

The Israel-based clinical-stage company CollPlant is focused on developing and commercializing tissue repair products for orthobiologics, and advanced wound care markets. Their products are based on their rhCollagen (recombinant human collagen), which is produced with CollPlant’s proprietary plant-based genetic engineering technology for use in tissue repair products. Last year the company even entered into an agreement with United Therapeutics to use their BioInks in the manufacture of 3D bioprinted lungs for future transplant in humans.

CollPlant BioInk

The initial closing of the new capital raise took place on September 3, when Mr. Sagi purchased $2 million of the convertible loans through a non-brokered private placement. The remaining $3.5 million in convertible loans were purchased by the US accredited investors.

Since CollPlant is headquartered outside of the US, the convertible loans totaling $5.5 million, automatically convert into the company’s American Depositary Shares (ADS), a US dollar-denominated equity share of a foreign-based company available for purchase on an American stock exchange. In the case of CollPlant, at a conversion price of $4 per ADS following approval of the transaction by CollPlant’s shareholders. Both Sagi and the US investors will also receive three-year warrants to purchase up to an aggregate of 1,625,000 ADSs. Sagi has already agreed to fund an additional $1 million following the execution of a license and/or a co-development agreement between CollPlant and a strategic business partner.

“We are now focused on facilitating our development programs of dermal fillers and regenerative breast implants. Our collaboration with United Therapeutics, which is using our BioInk technology for 3D printing lungs, is progressing, and we continue to expand our business collaborations with large international healthcare companies that seek to implement our revolutionary regenerative medicine technology. We are very pleased to have entered into this transaction with Mr. Sagi and the other investors,” stated Yehiel Tal, CEO of CollPlant.

Bioink for 3D printing

CollPlant is one of two companies developing biotechnology in Israel. The up and coming firm launched its new headquarters and R&D center in Rehovot (Israel) last May, for the development of its product pipeline, including the BioInks for 3D bioprinting of tissues and organs, and dermal fillers for medical aesthetics that can be injected into wrinkles.

“In the medical aesthetics market, we are moving forward with the development of a new dermal filler product line, addressing the need for more innovative aesthetic products to treat wrinkles. CollPlant is advancing collaborations with leading companies in this segment. Our new product line will be based on the combination of hyaluronic acid, a naturally-occurring, moisture-binding compound, with our plant-based, tissue regenerating rhCollagen,” detailed Tal while announcing the financial results for the company’s first quarter ending last March.

CollPlant works with collagen, a protein found in tissues such as tendons, skin, blood vessels and bones, and producing it from tobacco plants genetically engineered with five human genes. Its first successful products approved for sale in Europe are used for tendonitis and wound care, and according to company Chairman Jonathan Rigby, they are seeking to commercialize their products in the United States. The company is working hard at reaching their long term goals in regenerative medicine, including transplantable lungs for patients with serious medical conditions, bone repair and chronic wound closure.

Most recently, the firm announced the creation of their 3D bioprinted implants for the regeneration of breast tissue and the successful production of the first prototypes. According to company officials, the implants will be comprised of CollPlant’s proprietary type I recombinant human collagen and additional materials. Loaded with fat cells taken from the patient, these implants are intended to promote breast tissue regeneration. Eventually, the scaffold is designed to degrade and be replaced by newly grown natural breast tissue, that is free of any foreign material.

“The implants we are developing leverage our 3D bioprinting technology and the unique properties of our recombinant human collagen, that has an excellent safety profile. We believe that our technology can eliminate the high risk for adverse events associated with permanent breast implants and provide a revolutionary alternative. This technology is already raising interest from leading companies in this segment,” claims Tal.

CollPlant has made significant progress over the past two years thanks to the combination of their breakthrough technology, new R&D center, and developing new product lines for aesthetics and wound markets, enabling the company to move forward with more products and partnerships.

[Images: CollPlant]