TORONTO, Nov. 26, 2014 /CNW/ - Axcelon Biopolymers Corp. (ABC) announced today that a private placement financing of $1 Million has been completed in Axcelon Dermacare Inc. (ADI), a subsidiary of ABC, with an investment from VHealth Scientific Inc. of Toronto. Proceeds from the nonbrokered private placement will be used primarily for the commercialization of ADI's lead product Nanoderm™ that recently received Health Canada registration as a Class 2 medical device. Funds will also be used for development and commercialization of ADI's other advanced products in the wound-care market.
"We are delighted to have VHealth Scientific Inc. as a shareholder and partner in Axcelon Dermacare Inc. They bring a wealth of expertise and experience in wound care as well as other medical devices," said Dr. Chandra Panchal, Chairman and CEO of ABC and ADI.
"We are very pleased to be able to participate as a partner and an investor. We believe that the company's novel product, Nanoderm™, has great potential, both in North America and abroad," said Ms. Mei Xu, President of VHealth Scientific Inc.
Terms of the private placement have not been released. VHealth Scientific will be represented on the Board of Directors of ADI.
Nanoderm™ is a novel biocellulose based nanotechnology that makes it unique in the $2 billion wound-care market in Canada. As a simple, one-time dressing application, Nanoderm™ provides both a suitable barrier to infections while keeping a desirable moist environment to the wound, allowing gaseous exchange and pain alleviation. Nanoderm™ is indicated for a variety of treatments including second degree burns, dermabrasions as well as acute and chronic wounds.
Nanoderm™ is manufactured in Canada by Axcelon's strategic partner, ZBX Corporation of Toronto under its ISO 13485 Quality Management System.
About Axcelon Biopolymers Corp.
Axcelon Biopolymers Corp. is a private company developing and commercializing bacterial cellulose based products for biomedical devices as well as for non-medical applications. The company has several proprietary assets for development of advanced wound-care products, cardiovascular grafts, tympanic membrane as well as other high value consumer products. With its head office in London, Ontario, Axcelon maintains key operations in Toronto as well as Montreal.
Axcelon Dermacare Inc. is a majority owned subsidiary of Axcelon Biopolymers Corp. and is based in Toronto, Ontario.
VHealth Scientific Inc. is a Toronto, Ontario based Investment company with a keen focus in the biomedical industry.
This news release may contain forward-looking statements that reflect the Company's current expectation regarding future events. These forward-looking statements involve risk and uncertainties, which may cause, but are not limited to the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process, and other risks.
Image with caption: "Axcelon Biopolymers Corp. (CNW Group/Axcelon Biopolymers Corp.)". Image available at: http://photos.newswire.ca/images/download/20141126_C4361_PHOTO_EN_8599.jpg
SOURCE: Axcelon Biopolymers Corp.
For further information: Dr. Chandra Panchal, CEO, [email protected], Tel: 519 878 6157, www.axcelonbp.com