RenovaCare (Scottsdale, Ariz.) has announced an equity financing for $15.5 million from Kalen Capital Corporation, the family office of Harmel Rayat, who is the majority shareholder and chairman of RenovaCare. The equity financing increases his family office’s total equity investment in RenovaCare to over $20 million.
“Our long-term investment in RenovaCare speaks to our conviction that patients worldwide urgently need and deserve our regenerative SkinGun therapy, which sprays a patient’s own stem cells for rapid self-healing,” Rayat said in a press release. “I’m more confident than ever in our mission to replace painful and costly skin grafting surgeries with an ultra-gentle healing mist of one’s own skin cells. I believe we are in the right place, at the right time and with the right technology.”
The investment round allows the company to move forward in the regulatory approval process and clinical trial program. Rayat’s previous investment rounds allowed for pre-clinical development, product engineering and intellectual property filings.
“This $15.5 million equity round, which consists of $14,407,500 in cash and the conversion by Kalen Capital of the $1,095,000 of debt owed, provides us with ample funds. We can now pursue human clinical trials for the SkinGun, further strengthen our patent portfolio, bolster our management team and investigate the use of our cell spray technology for medical conditions beyond burns,” Thomas Bold, president of RenovaCare, said.
About 70 people with different types of severe second degree burns have been treated on an experimental basis with the RenovaCare SkinGun technology.
The technology sprays a gentle mist of a patient’s own skin cells, allowing patients to leave the hospital within a few days while avoiding painful skin grafts.