MiMedx Secures $75 million Non-Dilutive Debt Financing

MARIETTA, Ga., June 11, 2019 /PRNewswire/ -- MiMedx Group, Inc. (OTC PINK: MDXG) ("MiMedx" or the "Company"), an industry leader in advanced wound care and an emerging therapeutic biologics company, today announced it has entered into a loan agreement with Blue Torch Finance LLC ("Blue Torch"), under which Blue Torch will provide MiMedx a three-year term loan facility (the "Term Loan Facility") in the aggregate principal amount of $75 million, of which the full amount was borrowed and funded.  

MiMedx's entry into the Term Loan Facility follows the Company's April 11, 2019, announcement, in which MiMedx noted that it intended to seek capital to, among other things, implement its long-range strategic plan and accelerate the Company's timeline to achieve its growth objectives, including the Biologics License Application (BLA) pipeline. The proceeds of the Term Loan Facility will additionally be used for working capital, general corporate purposes, and certain contingent liabilities of the Company.

"Our ability to secure this debt financing, which significantly strengthens our balance sheet, is a testament to how far we have come in our efforts to turn the corner and get the Company back on track," said Ed Borkowski, Interim Chief Financial Officer for MiMedx. "We are intently focused on executing the Company's long-range strategic plan and completing the financial restatement. This financing transaction represents another important milestone in the Company's turnaround plan to enhance long-term shareholder value."

MiMedx notes that it has no other outstanding long-term debt. The agreed-upon financing does not include any equity or equity-linked component and is therefore non-dilutive to shareholders. Additional details regarding the Term Loan Facility and relevant terms will be available in a Form 8-K filed with the Securities and Exchange Commission.

PJT Partners is acting as financial advisor to MiMedx, and Skadden, Arps, Slate, Meagher & Flom LLP is acting legal counsel to MiMedx. Proskauer Rose LLP is acting as legal counsel to Blue Torch.

About MiMedx
MiMedx® is an industry leader in advanced wound care and an emerging therapeutic biologics company developing and distributing human placental tissue allografts with patent-protected processes for multiple sectors of healthcare. The Company processes the human placental tissue utilizing its proprietary PURION® process methodology, among other processes, to produce allografts by employing aseptic processing techniques in addition to terminal sterilization. MiMedx has supplied over 1.5 million allografts to date. For additional information, please visit www.mimedx.com.

Safe Harbor Statement
This press release includes forward-looking statements, including statements regarding the intended use of proceeds from the debt financing. Forward-looking statements may be identified by words such as "believe," "expect," "may," "plan," "potential," "will," "would" and similar expressions and are based on current beliefs and expectations. Forward-looking statements are subject to risks and uncertainties, and the Company cautions investors against placing undue reliance on such statements.  Actual results may differ materially from those set forth in the forward-looking statements as a result of various factors. Any forward-looking statements speak only as of the date of this press release, and except as required by law, the Company assumes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Contacts

Investors:
Hilary Dixon
Corporate & Investor Communications
770.651.9066
investorrelations@mimedx.com

Media:
Joele Frank, Wilkinson Brimmer Katcher
Andy Brimmer / Jed Repko / Annabelle Rinehart
212.355.4449

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SOURCE MiMedx Group, Inc.