Bacterin secures $8 million financing from WTI

Nov 22 2010

Bacterin International Holdings, Inc. (OTC Bulletin Board: BIHI) ("Bacterin"), a creator and developer of revolutionary bone graft material and anti-infective coatings for medical applications, today announced that it has secured an asset based lending facility of up to $8.0 million from Western Technology Investment, and has received approximately $980,000 through the exercise of warrants for a total of approximately $9 million potentially available for the Company's use.  In addition, Bacterin announced that it has received a financing proposal which provides up to $5 million in potential borrowings through an accounts receivable line of credit with Bridge Bank, based in San Jose, California.

Western Technology Investment ("WTI"), through two of its subsidiaries, will provide a facility of up to $8.0 million to Bacterin.  WTI, founded in 1980, is the oldest and largest independent venture debt firm.  WTI specializes in technology, healthcare and cleantech emerging growth companies and has provided capital to companies such as Brocade, Facebook, Google, IDEC Pharmaceuticals, Juniper Networks, and numerous others.  Under the terms of the WTI growth capital financing, Bacterin is permitted to draw down $2.5 million immediately with an additional $2.5 million available through April 30, 2011, provided Bacterin has achieved 90 percent of performance based milestones for the next two quarters.  In addition, subject to mutual agreement, WTI will make available an additional commitment through December 31, 2011 of up to 25 percent should there be a next new round of equity financing, or up to $3.0 million.  The facility is secured by the Company's assets.  The Bridge Bank financing proposal is contingent upon the receipt of final credit approval from Bridge Bank as well as definitive documentation.  The Company hopes to close on the facility within the next 30 days.

The Company also announced that it has issued new warrants to a limited number of existing investors who exercised existing warrants.  Cash payments of the exercise price of the existing warrants provided the Company with an additional $980,000 of available funds.  The new warrants have an exercise price of $4.00 per share and expire on the fifth anniversary of the date of issuance.

Middlebury Securities, LLC, a wholly owned subsidiary of Middlebury Group, LLC acted as placement agent in connection with the financing.

Commenting on the financings, Guy Cook, said, "This financing not only carries our Company to EBITDA profitability, but puts us on the course to carry out our current growth plans into the foreseeable future.  We have provided revenue guidance of $15 to $17 million for 2010 with an increase to $52 to $57 million in 2011.  We believe this growth is achievable with our current commercialized product line in concert with our current financing plan."