Biolase to Raise Approximately $9 million from Institutional Investors in Private Placement

Date Announced: 24 Jun 2011

Dental laser company expected to close latest fundraising move within a week.

IRVINE, CA (June 24, 2011) - BIOLASE Technology, Inc. (NASDAQ:BLTI), the World's leading dental laser manufacturer and distributor, announced today that it has entered into an agreement with Deerfield Management, a leading institutional life science investor, as well as other institutional investors to purchase approximately $9 million of BIOLASE's unregistered securities in a private placement transaction.

Under the terms of the private placement, BIOLASE has agreed to sell an aggregate of approximately 1.6 million shares of its common stock at price of $5.55 per share. In addition, the institutional investors will receive an aggregate number of warrants to purchase up to approximately 800,000 shares of common stock, at an exercise price of $6.50 per share, which warrants shall be non-exercisable for six months and shall have a term of five years from the date of issuance.

In connection with the transaction, within 25 days of the closing, BIOLASE agreed to file a registration statement with the Securities and Exchange Commission to register the resale of the shares issued at closing, as well as the shares of common stock issuable upon exercise of the warrants.

The private placement is expected to close on or about June 29, 2011, subject to customary closing conditions. The proceeds will be used for working capital and general corporate purposes.

Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc. (NASDAQ: RODM), acted as the exclusive placement agent for the transaction.

Source: Biolase

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