Calypte Biomedical Corporation (CBMC.OB), a developer, manufacturer and marketer of HIV diagnostic tests, announced that the company has entered into an $8.0 million common stock purchase agreement with Fusion Capital Fund II, LLC, a Chicago-based institutional investor. According to this agreement, Calypte may sell up to $8.0 million of their common stock to Fusion Capital over a 24-month period. In turn, these proceeds will be used to further develop Calypte’s Aware HIV-1/2 Rapid diagnostic tests.
Specifically, the purchase price of the shares will be based on the prevailing market prices of the Company’s shares at the time of sale without any fixed discount. A more detailed description of the transaction, as well as the agreement, will be set forth in Calypte’s 8-K reported.
Roger I. Gale, CEO of Calypte, stated, “We are very pleased to enter into this $8.0 million funding agreement with Fusion Capital, a respected institutional fund that has been investing in technology and health care companies for over eight years. The agreement, as a complement to funding potentially available to us from other sources, provides the Company with the flexibility to help us grow our rapid HIV diagnostic testing business in large developing markets as well as in the U.S.”
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