New Funding Raise of up to US$750,000 to Procure Amnion Tissue for New Regenerative Medicine Biologic Expected to Create
Significant Revenue Next Year
SCOTTSDALE, AZ--(Marketwired - September 13, 2016) -
NOT FOR DISSEMINATION IN THE US OR THROUGH US NEWSWIRE SERVICES
Lattice Biologics Ltd. (TSX VENTURE: LBL) (OTCBB:
BLVKF) ("Lattice Biologics" or the "Company") is pleased to announce a private placement
of Units of the Company (the "Units") at a price of Can$0.20 per Unit, for gross proceeds of up to US$750,000
(the "Offering"). Each "Unit" consists of one common share in the capital stock of the Company (a "Unit
Share") and one-half of one non-transferable common share purchase warrant of the Company (a
"Warrant"). Each whole Warrant is exercisable into an additional common share at a price of Can$0.265 per share
for a period of 36 months from the date of closing of the Offering.
The proceeds from the Offering will be used for general working capital, including funds to acquire amnion donors to begin
production of Lattice Biologics' newly developed amniotic fluid for regenerative use.
Lattice Biologics plans to launch its new regenerative amniotic fluid product later this year in response to a large and
growing market that is currently unsatisfied. The product is a novel, targeted regenerative therapeutic aimed at osteoarthritis
(OA), spine, neuro, plastic surgery, sports medicine, and foot and ankle indications. Bolstered by strong efficacy and safety
data, this new product line will serve a US$2.8 billion addressable market in the United States and is projected to represent a
significant increase in Lattice Biologics' annual revenue in 2017.
The infusion of funds will also strengthen the Company's ability to complete strategic Mergers and Acquisitions (M&A).
Management continues to investigate select M&A opportunities based on their potential to increase market share, improve
technology and innovations, or expand the Company's high-margin product offerings. Lattice Biologics has identified a promising
biotech start-up for acquisition, which -- if the transaction is completed -- will come with important controlling and blocking
patents that will provide a unique advantage and power the Company's entry into the amnion market.
"Our team is thrilled to unveil a new regenerative amniotic fluid line for a wide variety of applications," said Guy
Cook, Lattice Biologics CEO. "The new funding will allow us to support physicians in providing their patients with an
efficient regenerative medicine solution. We have given great thought to the 27 million individuals suffering from OA pain, as
well as many others who can benefit from treatment, while developing this product and we can't wait to start delivering
results."
The Offering is subject to TSX Venture Exchange ("TSXV") acceptance.
This is the latest development in the Company's ongoing forward momentum. The Offering closely follows Lattice Biologics'
fourth announcement as an approved vendor with a major healthcare services organization. The approval (announced September 6, 2016) with a US$15 billion integrated health system includes 39 hospitals and more than 400 care
centers across California, Arizona, and Nevada.
Conversion of Debt to Equity:
The Company is also pleased to announce that it has obtained TSXV approval to issue 8,568,171 common shares of the
Company to settle outstanding debt in the amount of Can$1,799,316.12.
Can$1,301,669.64 in debt held by Guy Cook and Can$497,646.48 in debt held by Cheryl Farmer has been converted to equity at a
price of Can$0.21 per share and the debt has now been extinguished.
The conversion of debt to equity was previously announced by the Company on March 2, 2016.
Lattice Biologics Ltd.
Guy Cook,
Chief Executive Officer
Telephone No: (480) 563-0800
About Lattice Biologics Ltd.:
Lattice Biologics recently completed its RTO, becoming a publically traded company on January 4, 2016 and is traded
on the TSX-V under the symbol: LBL. The Company is an emerging personalized/precision medicine leader in the field of cellular
therapies and tissue engineering, with a focus on bone, skin, and cartilage regeneration.
Lattice Biologics develops and manufactures biologic products to domestic and international markets. Lattice's products are
used in a variety of surgical applications.
Lattice Biologics maintains its headquarters, laboratory and manufacturing facilities in Scottsdale, Arizona as well as
offices in Toronto, Ontario. The facility includes ISO Class 1000 and ISO Class 100 clean rooms, and specialized equipment
capable of crafting traditional allografts and precision specialty allografts for various clinical applications. The Lattice
Biologics team includes highly trained tissue bank specialists, surgical technicians, certified sterile processing and
distribution technicians, and CNC operators who maintain the highest standards of aseptic technique throughout each step of the
manufacturing process. From donor acceptance to the final packaging and distribution of finished allografts, Lattice is committed
to maintaining the highest standards of allograft quality, innovation, and customer satisfaction.
Lattice Biologics maintains all necessary licensures to process and sell its tissue engineered products within the U.S. and
internationally. This includes Certificates to Foreign Governments from the U.S. Food and Drug Administration (FDA) and
registrations for 29 countries, which allow the export of bone, tendon, meniscus, ligament, soft tissue, and cartilage products
outside of the U.S.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement on Forward-Looking Information:
Certain information contained in this news release constitutes "forward-looking statements" within the
meaning of the 'safe harbour' provisions of Canadian securities laws. All statements herein, other than statements of historical
fact, are to be considered forward looking. Generally, forward-looking information can be identified by the use of
forward-looking terminology such as "potential", "future", "expected", "could", "possible", "goal", "intends", "will" or similar
expressions. Forward-looking statements in this news release include, without limitation: information pertaining to the Company's
strategy, plans, or future financial performance, such as statements with respect to the Offering and the use of proceeds, future
revenues, and other statements that express management's expectations or estimates of future performance. Forward-looking
statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity,
performance or achievements of Lattice to be materially different from those expressed or implied by such forward-looking
statements.
Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered
reasonable by management as of the date such statements are made, are inherently subject to significant business, economic and
competitive uncertainties and contingencies. The factors and assumptions that could prove to be incorrect, include, but are not
limited to: that market prices will be consistent with expectations, the continued availability of capital and financing, and
that general economic, market and business conditions will be consistent with expectations. The forward-looking statements are
not guarantees of future performance. We disclaim any obligation to update or revise any forward-looking statements, except as
required by law. Readers are cautioned not to put undue reliance on these forward-looking statements.
United States Advisory: The securities referred to herein have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered, sold, or resold in the United States or
to, or for the account of or benefit of, a U.S. Person (as such term is defined in Regulation S under the U.S. Securities Act)
unless an exemption from the registration requirements of the U.S. Securities Act is available. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in
the state in the United States in which such offer, solicitation or sale would be unlawful.
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