SILVER SPRING, Md., Nov. 09, 2023 (GLOBE NEWSWIRE) — Elutia Inc. (Nasdaq: ELUT), a company pioneering drug-eluting biomatrix products, today announced it completed the divestiture of its Orthobiologics business unit to Berkeley Biologics LLC, a wholly owned subsidiary of GNI Group Ltd.
The transaction enables Elutia to strategically focus on its proprietary drug-eluting biomatrix platform and provides the Company with cash proceeds of up to $35 million, comprised of upfront payments no later than November 17, 2023 of $15 million plus potential earnout payments of up to $20 million over a five-year period. Combined proceeds with the previously announced September 2023 private placement potentially top $60 million.
“With the closing of this transaction, Elutia is now fully focused on our high-growth biomatrix product platforms, including our near-term blockbuster opportunity with CanGaroo®RM,” said Dr. Randy Mills, President and Chief Executive Officer of Elutia. “The proceeds from this transaction, coupled with the September financing, should have us well-capitalized to advance our proprietary drug-eluting biomatrix platform. And all of this is made possible by the outstanding work of our team, which continues to execute the Elutia plan with relentless drive and focus.”
Mizuho Securities USA LLC acted as financial advisor and Kilpatrick Townsend & Stockton LLP acted as legal advisor to Elutia in connection with this transaction.
Elutia develops and commercializes biologic products to improve compatibility between medical devices and the patients who need them. With a growing population in need of implantable technologies, Elutia’s mission is humanizing medicine so patients can thrive without compromise. For more information, visit www.Elutia.com.