A Melville biotechnology company plans to raise up to $15 million in an offering of common stock and other securities and apply to move trading from the OTC Markets Groups to the Nasdaq Capital Market, according to a government filing.
BioRestorative Therapies, Inc. is developing a stem-cell therapy in which patients with bulging discs related to degenerative disc disease receive an injection as an alternative to surgery. The stem cells are collected from the patient’s bone marrow and processed before being injected into a damaged disc. In February, the Food and Drug Administration cleared the company to begin a Phase 2 clinical trial.
The company, which has raised about $23 million in equity and debt financing over the past five years, according to the filing, also is working on animal studies related to a treatment for obesity and metabolic disorders. Mice have lost weight in those studies, the company said.
In 2014, BioRestorative Therapies announced it was moving its headquarters from Jupiter, Florida, to Melville, and New York State agreed to grant the company $500,000 in state tax credits over 10 years. The Suffolk County Industrial Development Agency also agreed to grant it tax breaks worth $146,000 over five years.
The company posted a net loss of $8.6 million, or $2.10 per diluted share, in 2016.
In addition to common stock, the company plans to issue warrants and preferred stock, according to the preliminary prospectus filed on Thursday. As of September 27, intellectual property lawyer John M. Desmarais, one of the company’s directors, owned securities representing 27.5 percent of BioRestorative Therapies’ common stock.
BioRestorative Therapies stock closed unchanged Friday at $3.15. Shares have declined about 60 percent in the last 12 months.