Putney files $3M debt offering; more investment expected
Putney Inc., a Portland-based veterinary product company, has filed a $3 million debt offering with the U.S. Securities and Exchange Commission and fully sold it.
Company President and CEO Jean Hoffman told Mainebiz that the filing is a bridge loan from existing investors.
“It is part of additional financing Putney is doing this year to invest further in R&D,” she said, though she would not specify the type of research and development the company would pursue.
Listed on the filing with Hoffman are other Putney officers: Christopher Lewis, executive officer; Barry Edwards, director; Shyam Bhartia, director; B. Sauerteig, director; E. Corcoran, director; Bruce Downey, director; and Stephen Zarrilli, director.
In a separate development, Zarrilli, who is also president and CEO of Safeguard Scientifics, told an earnings call, with the written contents provided by the Seeking Alpha website on April 24, that his company had provided Putney with $1.9 million in follow-on funding in the form of a convertible bridge loan subsequent to the first quarter of 2014. He added that Safeguard expects to fund an additional $2.5 million to Putney during the second quarter.
Hoffman said the $1.9 million is part of the $3 million bridge loan specified in the SEC document, and that money would be rolled into an equity round later. She would not specify the total amount of the equity round, saying the company is waiting until all the funding closes, but she did confirm the additional $2.5 million would be part of the equity round.
Since September 2011 Safeguard has invested $11.9 million in Putney, Zarrilli told the conference call, and its primary ownership in the privately held Portland company remains at 28%.
He added that Putney’s story, “is especially promising, revenue grew to more than $20 million in 2013 and is on track to increase significantly in 2014.” He said Putney now has seven products on the market and proceeds from the follow-on funding will help Putney with deliveries, its R&D pipeline and expand its commercial efforts in advance of additional product approvals anticipated from the U.S. Food and Drug Administration Center for Veterinary Medicine.
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