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Security Type
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Crowd Note
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Categories
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Other
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Min Investment
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$1,000
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Offering Date
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April 05, 2019
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Expected Close Date
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July 04, 2019
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Target Raise
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$1.50M-$19.00M
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Deal Notes
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Conversion discount: 20.0%
Interest rate: 5.0%
Note term: 24 months
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Valuation
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$46,701,000
Company Description
Diagnostics and therapeutics for osteoarthritis
Perks
$15,000 – Complimentary consultation with a qualified physician (regional availability may differ), plus participation in scheduled quarterly calls with Cytonics’ senior management
$25,000 – All of the above, plus complementary APIC kit (sent to a qualified physician, regional availability may differ)
$50,000 – All of the above, plus paid airfare to visit our research facilities and a dinner with Cytonics’ senior management, plus a complimentary consult with Gaetano Scuderi, MD and APIC treatment
$100,000 – All of the above, plus complimentary flight (for two) to Jupiter, FL for a weekend stay at the Jupiter Beach Resort, plus invitation to annual updates (dinners, calls) with Cytonics’ senior management
$200,000 – All of the above, plus an active role in CYT-108 development, plus complimentary admission to industry conferences that Cytonics attends (such as the American Academy of Orthopedic Surgeons Annual Meeting)
Key Deal Facts
Raised over $15mm to date, including a $4mm investment from Synthes (a Johnson & Johnson company)
Executed licensing agreements for its FACT and APIC technologies, with a value up to $6mm and 10% royalties on net sales
The National Institute of Health (NIH) has awarded Cytonics nearly $1.8mm in government grants
IP portfolio consists of 6 issued U.S. and international patents with 9 patents pending
Founded by a leading orthopedic surgeon (21 years of experience) and backed by renowned physicians, researchers, and biotech investors
Use of Proceeds
CYT-108 Purification, Pilot Animal Study, Reg A+ Fundraising Marketing Expenses
Management Team / Advisory Board Bios
Gaetano Scuderi, MD
FOUNDER AND CHAIRMAN OF THE BOARD
Gaetano Scuderi, MD is the Founder and Chairman of the Board of Cytonics Corporation. Dr. Scuderi is a fellowship-trained (UCSD, San Diego, CA) spine surgeon who has practiced medicine since 1993. He was also appointed to Clinical Assistant Professor in the Department of Orthopedic Surgery of Stanford University. He graduated medical school from State University of New York (Buffalo, NY) and completed his Residency at University of Miami School of Medicine (Miami, FL). Dr. Scuderi has published over 45 scientific articles and has lectured world-wide. Dr. Scuderi currently practices orthopedic surgery in Jupiter, FL.
In addition to his clinical practice and his role with Cytonics, Dr. Scuderi is a 4th degree black-belt in Jiu Jitsu and the founder/principle instructor of Scuderi Self Defense (Jupiter, FL). Dr. Scuderi's love for this martial art is only surpassed by his passion for helping the sick and elderly reclaim their mobility and quality of life.
Deal Notes
Conversion discount: 20.0%
Interest rate: 5.0%
Note term: 24 months
Amount Raised
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$4,048,274
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Security Description
A Crowd Note modifies the typical convertible note so that the crowd does not automatically convert to equity shareholders on the next financing and remain off the issuer’s capitalization table, but the crowd will still participate in any exit as if they had converted to equity. If there is no future financing, the holders of the Crowd Note still have upside, but could miss out significantly.