January 2, 2018 9:29am
… Following receipt of a $5.1 million upfront and warrant payment from ICT
Under the terms of the agreement, ICT will develop and distribute MACI®, Epicel®, ixmyelocel-T and Carticel® in Greater China, South Korea, Singapore, and other countries in the region.
The payment was comprised of an upfront license fee and $4.2 million for a warrant to purchase 818,424 shares of VCEL’s common stock based on the closing price as of December 6, 2017 at an exercise price of $0.01 per share.
On December 27, 2017, ICT exercised the warrant via a cashless exercise in exchange for 816,850 shares of the Company’s common stock. Vericel also is eligible to receive approximately $8 million in development and first commercial sale milestones and tiered low to middle double digit royalties equal to a percentage of net sales of each licensed product.
ICT will be responsible for funding the development of the programs and manufacturing the products for commercialization in China and the rest of the territory.
Based on the continued momentum in MACI uptake following launch and expanded Epicel utilization, VCEL anticipates that this funding, together with our recently expanded $25 million debt facilities with Silicon Valley Bank and MidCap Financial, will allow VCEL to reach profitability without raising additional capital.”
The transfer of funds was executed following review and approval by the State Administration of Foreign Exchange of the People's Republic of China.