Ortec closes $5.8 million private placement of preferreds, warrants

By Sheri Kasprzak

New York, June 20 - Ortec International, Inc. sealed a $5.8 million private placement of series A convertible preferreds with warrants.

The company sold 580 shares of the preferreds at $10,000 each to new and existing institutional and accredited investors.

The full terms could not be determined by press time Wednesday.

Burnham Hill Partners, Inc. was the placement agent.

Also, holders of $2.7 million in convertible bridge notes issued between October 2006 and the closing of the placement, converted their notes into 349 shares of preferred stock and warrants.

Proceeds will be used for the generation of data necessary to file the company's application with the Food and Drug Administration for pre-market approval of its OrCel product to treat venous stasis ulcers.

New York-based Ortec develops cellular technologies and advanced biomaterial products for regenerative medicine.

On Wednesday, the company's stock gained 18.18%, or 10 cents, to end at $0.65 (Pink Sheets: OTCI).

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