Proceeds of $23 million were received upon the closing of this transaction, through the sale of preferred stock to both Paul Capital and Essex. Additional amounts of up to $45 million, comprised of both equity and a revenue interest financing, will be funded based on the satisfaction of certain predetermined milestones.
Concurrent with the financing, Prism also announced that Todd Davis and Clarke Futch of Paul Capital have joined the Prism board of directors, which also include James Currie and Petri Vainio of Essex and Warren Cooper, Prism's CEO.
"In order to accomplish our goal of becoming a leading specialty pharmaceutical company in the acute care space, we needed the support and funding from the investment community," said Warren Cooper, President and CEO of Prism. "We are pleased that Paul Capital has recognized our vision and understands our growth opportunities as we move closer to establishing a robust portfolio through the licensing of products and compounds in various stages of development. This funding allows us to move more rapidly towards creating unique and valid development pathways shaped by medical need and market opportunity."
"We believe Prism's product portfolio shows tremendous promise and we are confident in the ability of the company's strong management team to further develop and commercialize these products," said Todd Davis, Partner, Paul Capital Partners. "This transaction epitomizes the types of financing agreements we structure for growing companies in need of capital to fund their development and commercialization programs."
About Prism Pharmaceuticals, Inc.
Prism, founded in September 2004 and based in King of Prussia, Pennsylvania, is a specialty pharmaceutical company committed to developing and commercializing acute care cardiovascular products. For further information, visit http://www.prismpharma.com.
About Essex Woodlands Health Ventures
Essex Woodlands Health Ventures is one of the United States' premiere venture capital firms focusing exclusively on the healthcare industry. Essex Woodlands recently raised their seventh fund of $600 million. The firm has offices in California, Texas, New York and London. The Essex Woodlands team has been involved in the founding, investing, and/or management of over 100 healthcare companies ranging across all sectors, stages and geography. For more information, visit http://www.ewhv.com.
About Paul Capital Partners and Paul Royalty Fund
Paul Capital Partners manages nearly $5 billion in equity capital commitments for its three investment platforms that include Healthcare Royalty and Revenue Interests, Private Equity Secondaries and Top Tier Fund-of-Funds. The firm has offices in New York, San Francisco, Paris, London and Toronto. The Paul Royalty Fund is one of the largest dedicated healthcare funds globally, with approximately $1 billion in equity capital commitments. The Paul Royalty Fund has made investments in the pharmaceutical, biotechnology, and medical device sectors valued at more than $850 million. These investments are focused on commercial stage companies and products, and consist of investments in the form of royalties, revenue interests and equity. For more information, visit http://www.paulcapital.com.
Source: Prism Pharmaceuticals, Inc
