Carmell Therapeutics closes Axolotl Biologix sale transaction

Carmell announced the closing of the previously announced sale of its wholly owned subsidiary, Axolotl Biologix to the initial sellers of AxoBio for 3,845,337 shares of Carmell common stock, 4,243 shares of Carmell preferred stock and cancellation of $8 million in notes payable. Following the sale of AxoBio, Carmell’s financial position is expected to improve as follows: $4 million drop in annualized cash burn based on AxoBio’s actual January 2024 financials. $15.6 million reduction in debt: $7.6 million of AxoBio subsidiary level debt plus $8 million note payable related to the AxoBio acquisition. $7 million increase in tangible equity due to elimination of AxoBio’s negative tangible equity. 29% reduction in EPS dilution due to the cancellation of 8.09 million CTCX common shares on a fully diluted basis. Post-Closing, Carmell has 19.25 million common shares outstanding.