CAMBRIDGE, Mass., Sept. 6, 2011 /PRNewswire/ -- SyntheMed, Inc. ("the Company") (OTCBB: SYMD; Pink Sheets: SYMD) and Pathfinder, LLC, a private biotechnology company focused on the treatment of diseases characterized by organ-specific cell damage, today announced the completion of their merger, effective September 2, 2011. The Company changed its name to "Pathfinder Cell Therapy, Inc.", and the stock will continue to trade on the OTC Bulletin Board, changing to a new trading symbol shortly.
As a result of the merger, the Company is now headquartered in Cambridge, Massachusetts and managed by Pathfinder's co-founder, Richard L. Franklin, M.D., Ph.D., as President, Chief Executive Officer and a Director. Joerg Gruber, a co-founder of Pathfinder, serves as Board Chairman. Prior to the merger, Dr. Franklin had served as Executive Chairman of the Company and Mr. Gruber had served as a Director.
The Company has formed a new Board of Directors, which, in addition to Dr. Franklin and Mr. Gruber, comprises John Alam, Head of the Therapeutic Strategic Area for Diseases of Aging at sanofi-aventis and former Executive VP and Medical Director of Vertex Pharmaceuticals, John Brooks, III, CEO of the Joslin Diabetes Center and founder of Healthcare Capital Consulting LLC, Zen Chu, founder of Accelerated Medical Ventures, and Brock Reeve, Executive Director of the Harvard Stem Cell Institute (HSCI).
Following the merger, the Company completed the first closing of the up to $6 million private placement contemplated by the merger. In the closing, the Company sold 89,661,520 shares of common stock, representing approximately 13.5% of the outstanding shares after issuance, for gross proceeds of $4,483,076, or $.05 per share. Of the proceeds, $1,375,500 was paid in cash, and the balance was paid by conversion of Pathfinder debt. Clubb Capital Limited, of which Mr. Gruber is Chairman, acted as placement agent for the capital raise.
Dr. Franklin commented: "Pathfinder's transition into a publicly traded company provides a vehicle for accelerated growth, and the additional capital raised as part of this merger will allow us to further the development of our proprietary pathfinder cells, or PCs, which we believe could significantly impact regenerative medicine. In preclinical studies, PCs demonstrate the unique ability to reverse cell damage caused by diabetes, renal diseases and myocardial infarction. They may also be effective in other diseases characterized by organ-specific cellular damage."
About Pathfinder Cell Therapy, Inc.
Pathfinder is developing a novel cell-based therapy with the potential to transform the treatment of diabetes, renal disease, myocardial infarction, and other diseases characterized by organ-specific cell damage. Leveraging its internal discovery of Pathfinder Cells ("PCs") and a proprietary means of isolating these cells from surrounding tissue, Pathfinder is pioneering a new field in regenerative medicine. PCs are a newly identified mammalian cell type present in very low quantities in a variety of different organs, including the kidney, liver, pancreas, lymph nodes, and other tissues.
Early studies indicate that PCs stimulate regeneration of damaged tissues without the cells themselves being incorporated into the new tissue. The cells appear to be "immune privileged", and their effects are independent of the tissue source of PCs. PCs isolated from both rat and human tissue sources have shown efficacy in animal models of diabetes, cardiac ischemia, and renal reperfusion injury.
For more information please visit: www.pathfindercelltherapy.com
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements. You should be aware that our actual results could differ materially from those contained in the forward-looking statements, which are based on management's current expectations and are subject to a number of risks and uncertainties, including, but not limited to, risks related to regulatory approvals and the success of Pathfinder's ongoing and future studies, including the success of PCs, and uncertainties relating to the availability of capital to support Pathfinder's research, development and potential product commercialization activities, and the success of its research, development, regulatory approval, marketing and distribution plans and strategies. These and other risks and uncertainties are identified and described in more detail in the Company's filings with the Securities and Exchange Commission including the definitive proxy statement filed on July 26, 2011. The Company undertakes no obligation to publicly update or revise any forward-looking statements.
SOURCE Pathfinder, LLC; SyntheMed, Inc.