IRVINE, CA (February 26, 2020) - Biomerica Inc. (NASDAQ: BMRA) (the "Company" or "Biomerica") announced today that the Company completed a private placement of $2 million of convertible preferred stock with Palm Global Small Cap Master Fund LP ("Palm"). The preferred shares are initially convertible into shares of the Company's common stock at a price of $3.50 per share. This represents a premium to the market price of the Company's common stock at the time of closing.
The Company intends to use the proceeds to, among other things, obtain FDA clearance for and launch the Company's H. Pylori product in the United States and complete the InFoods IBS clinical trials needed for FDA clearance.
In connection with the investment by Palm, Joshua S. Horowitz has been appointed as a non-voting observer to the Biomerica Board of Directors. Mr. Horowitz has served as a Director of two separate Nasdaq traded companies over the past six years. Most recently, he served as Interim Chairman of the Board of the only publicly traded dental service organization.
Joshua Horowitz, Portfolio Manager at Palm stated, "We are impressed that Biomerica has created a formidable suite of diagnostic products across the gastrointestinal spectrum. We are excited by the potential of the Company's existing products in both colon cancer detection and H. Pylori as well as the prospects for its novel InFoods IBS product. In addition, we are enthused by independent studies that show patients utilizing Biomerica's first generation food intolerance product had a significant improvement in the IBS-D symptom of stool frequency as compared to an efficacious drug in the class. We believe this data is exciting because it indicates that the identification and elimination of problematic foods from the diet could play a significant role in treating patients with IBS."
Zackary Irani, Chief Executive Officer of Biomerica, stated, "We are pleased to add Palm as a significant shareholder and partner of the Company. We are also looking forward to accelerating our existing InFoods IBS clinical trials and begin the process to commercialize additional InFoods products that address other diseases states. Biomerica has attracted and signed leading medical institutions and key opinion leaders for the InFoods IBS product. This exemplifies the excitement we see in the industry about the potential benefits that InFoods IBS could provide to both physicians and patients."