Investors
Proceeds will fund R&D (72%), marketing (5%), and G&A (23%). Cash raised will extend the runway through the end of 2021 and will be used to advance R&D, strengthen the Sarcio intellectual property portfolio, and build out a regulatory strategy.
2021 Sarcio Use of Proceeds:
Animal studies in osteoarthritis models to show efficacy
Build out regulatory strategy
Strengthen intellectual property portfolio
Sarcio was awarded $300K in grants from the State of Minnesota Regenerative Medicine Minnesota program in 2018, 2019, and 2020. $100K is unspent and will be used in 2021. Ninety percent of grant money must be invested in R&D, and the remaining 10% may be used for operations.
As Sarcio hits its major milestones and valuation inflection points, the company will dramatically decrease its technology and execution risk, leading to a meaningful, high-end valuation. With proper execution, the company will draw the attention of a large market where there are no good solutions, and each valuation inflection point will present an exit opportunity. Strategic acquirers include companies that would benefit from having the Sarcio product in their portfolios.
