Funding to support late-stage development of novel, drug delivery device to accurately and precisely deliver oral liquid drugs only to biometrically authenticated Intended Users
DALLAS, Oct. 22, 2021 /PRNewswire/ -- Berkshire Biomedical Corporation ("Berkshire" or "the Company"), focused on developing drug delivery devices designed to accurately and precisely deliver oral liquid drugs only to the biometrically authenticated Intended User, provide remote monitoring and enhance patient wellness, announced today that the company issued $2.75 million in 8% convertible promissory notes (the "Notes") to a group of qualified investors, including founding and other investors who participated in the previous capital raise.
The Notes, which were approved by Berkshire Biomedical's board of directors, accrue interest at the rate of 8% per annum and have a maturity date of 5 years post issuance (the "Maturity Date"). Prior to the conversion, the Company can repay all or any portion of the notes without penalty.
In the event the Company consummates, prior to the maturity date of the Notes, a qualified equity financing event ("Financing Event") pursuant to which it sells shares of preferred stock (the "Preferred Stock") in a single transaction or group of related transactions, then all outstanding principal, together with all accrued but unpaid interest under the Notes, will automatically convert into shares of the Preferred Stock in the same class as being issued, but at a pre-defined discount to the price per share paid by the other purchasers of stock in the Financing Event.
"This infusion of new capital is important as it supports the late-stage development of our COPATM System, as we advance the program toward achieving regulatory clearance," said John Timberlake, Chief Executive Officer of Berkshire. "We appreciate the ongoing support of our loyal investors as it underscores their commitment to and alignment with our vision to enhance patient wellness by leveraging technology to improve medical outcomes."
"Chronic pain and opioid addiction medication assisted therapy have been identified as potential indications with the greatest need for which the COPA System's unique security, compliance support metrics and precise liquid dispensing features could benefit. There is a growing need for safer, better ways to deliver important drugs to only those Intended Users, and we look forward to advancing the COPA System to address these growing unmet medical needs and enhance patient outcomes," added Mr. Timberlake.
Separately, the Company announces that prior to the issuance of the convertible notes, it converted from a limited liability company to a Delaware corporation. This conversion became effective as of September 30, 2021.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
About Berkshire Biomedical Corporation
Berkshire Biomedical Corporation is a privately held medical device company. Berkshire is developing drug delivery devices designed to accurately and precisely deliver oral liquid drugs by pioneering the use of biometric technologies, combined with cloud-based and physician-enabled remote management systems to provide accurate personalized medication delivery to the authenticated Intended User. The Company's lead product under development, the Computerized Oral Prescription Administration (COPATM) System, is an authenticated Intended User automated oral liquid dispensing system designed to deliver controlled and non-controlled liquid oral medications to only the Intended User upon confirmation of dual biometric identifications (fingerprint and dentition). Three overarching features combine to make the COPA technology unique: security, compliance support (metrics) with remote monitoring and precise liquid dispensing. Chronic pain and opioid addiction medication assisted therapy have been identified as potential indications with the greatest need for the benefits of these features.
The Company intends to initially seek opportunities to leverage COPA in the delivery and remote management of controlled liquid oral medications and to expand COPA use in broader medical markets, drug applications, and businesses that manage the commercialization and data analytics provided by the electronic devices to improve outcomes and reduce risk.
Additional information about Berkshire Biomedical and the COPA System can be found at www.berkbiomed.com.
Berkshire Biomedical Corporation
Anne Marie Fields
Rx Communications Group, LLC
SOURCE Berkshire Biomedical Corporation