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    Biolase to raise $35 million from institutional and individual investors in private placement

    Nov. 5, 2014
    Multiple Biolase investors have agreed to purchase $35 million of unregistered shares of the company’s common stock and warrants to purchase unregistered shares of the company’s common stock in a private placement transaction.
    Biolase Inc. (NASDAQ:BIOL), a dental laser manufacturer and distributor, announced yesterday that multiple investors have agreed to purchase $35 million of unregistered shares of the company’s common stock and warrants in a private placement transaction. These investors include: Jack W. Schuler; Oracle Partners LP and other Oracle funds; three funds managed by Camber Capital Management LLC; Eagle Growth Partners I and II; Birchview Capital LP; Trellus Partners LP, CAC, LLC; and certain Biolase directors, officers, and employees.

    Under the terms of the private placement, Biolase has agreed to sell an aggregate of 14,162,873 shares of its common stock at the price of $2.39 per share, the closing price quoted on NASDAQ on November 3, 2014. In addition, the investors will receive warrants to purchase up to an aggregate of 9,205,862 shares of Biolase common stock at an exercise price of $4 per share. The warrants become exercisable six months after the closing of the private placement and have a term of three years from the date of issuance.

    “We appreciate the enthusiastic interest and strong support of both existing and new investors at this very exciting time for Biolase, and we expect the proceeds raised to fuel the company’s growth and innovation efforts.”

    In connection with the transaction, Biolase agreed to use commercially reasonable efforts to file, within 30 days of the closing, a registration statement with the Securities and Exchange Commission to register the resale of both the shares and the shares underlying the warrants issued at the closing.

    The private placement is expected to close on or about November 7, 2014, subject to customary closing conditions. The proceeds will be used for working capital and general corporate purposes.

    Paul N. Clark, chairperson of the board of directors of Biolase, said, “We appreciate the enthusiastic interest and strong support of both existing and new investors at this very exciting time for Biolase, and we expect the proceeds raised to fuel the company’s growth and innovation efforts.”

    Jeffrey M. Nugent, the president and CEO and director of Biolase, said, “We are pleased that our financial partners have expressed their confidence in our new strategy to deliver on the promise of laser dentistry and Biolase’s position as the industry leader through this investment. Our new experienced senior management team is already making progress in driving growth and innovation, and we are committed to growing Biolase and building shareholder value.”

    This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities. The securities offered and sold in the private placement have not been registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration, or an applicable exemption from registration under the Securities Act and applicable state securities laws.