HepaLife Technologies Secures $15 Million Equity Financing Agreement with Fusion Capital Fund II

Strategic Insights -

HepaLife Technologies, Inc. (HPLF) has entered into an agreement with Fusion Capital Fund II, LLC to raise up to $15 million in equity financing. The agreement allows HPLF to sell newly issued stock to Fusion Capital in monthly installments of up to $500,000 over a period of up to 30 months, contingent on market price. The deal empowers HPLF to control the timing and amount of stock sold, with the option to require Fusion Capital to purchase more or fewer shares per month. This funding will enable HPLF to accelerate its research and development activities, focusing on creating the first-of-its-kind artificial liver device and proprietary in-vitro toxicology and preclinical drug testing platforms.

Key Takeaways:

  • HepaLife Technologies has entered into an agreement with Fusion Capital Fund II to raise up to $15 million in equity financing.
  • The financing will be provided in monthly installments of up to $500,000 over a period of up to 30 months, contingent on market price.
  • HPLF will have control over the timing and amount of stock sold to Fusion Capital, with the option to require smaller or larger monthly purchases.
  • The funding will enable HPLF to focus on core research activities, including the development of an artificial liver device and proprietary in-vitro toxicology and preclinical drug testing platforms.
  • The patented PICM-19 cell line has demonstrated potential application in the production of an artificial liver device for human patients with liver failure.
  • Approximately 25 million Americans suffer from liver disease, highlighting the need for an artificial liver device that can remove toxins and improve survival rates.
  • Limited treatment options, a low number of donor organs, and high transplantation costs exacerbate the urgency for an artificial liver device.
  • Hepatotoxicity is responsible for one-third of drug failures, resulting in losses of $2 billion annually for pharmaceutical companies.
  • A 10% improvement in predicting drug failures before clinical trials could save pharmaceutical companies $100 million per drug, which could be developed in 10-15 years.

Statistics:

  • Up to $15 million will be raised in equity financing through the agreement with Fusion Capital Fund II.
  • Monthly installments of up to $500,000 will be provided over a period of up to 30 months.
  • The patented PICM-19 cell line displays enhanced liver-specific functions such as ureagenesis and cytochrome P450 activity.
  • Approximately 25 million Americans suffer from liver disease.
  • One-third of drugs fail due to toxicity, resulting in annual losses of $2 billion.
  • Developing a single drug can cost up to $1 billion and take 10-15 years.
  • A 10% improvement in predicting drug failures before clinical trials could save pharmaceutical companies $100 million per drug.

Sources:

  • Health & Medicine Week editors, "HepaLife Technologies Secures $15 Million Equity Financing Agreement," 2005, Health & Medicine Week via NewsRx.com.