Cytomedix expands in regenerative medicines, buying Aldagen

USA-based regenerative wound care specialist  Cytomedix (OTC.BB: CMXI.OB) said yesterday that it has completed the acquisition of Aldagen, a privately-held US biopharmaceutical company developing regenerative cell therapies based on its proprietary ALDH bright cell (ALDHbr) technology, which has twice dropped an initial public offering (IPO) because of negative market conditions.

Under the terms of the transaction, Cytomedix issued preferred shares valued at $16 million based on a 10-day volume-weighted average price (VWAP) calculated through February 2, 2012. Cytomedix will issue additional consideration to be paid in common stock on the successful attainment of several clinical milestones. As part of the transaction, certain Aldagen investors purchased $5.0 million of Cytomedix common stock in a private placement concurrent with the closing of this acquisition.

Aldagen shareholders, who will own 17% of the combined company, are also eligible for milestones of up to around 20.3 million Cytomedix shares, which are valued at $28.4 million based on Cytomedix' close of $1.40 on Wednesday, before the deal was announced.