WAYNE, Pa., March 17 /PRNewswire-FirstCall/ -- Escalon Medical Corp.
(Nasdaq: ESMC) today announced that it has completed a $10,400,000 private
placement of common stock and common stock purchase warrants to accredited and
institutional investors.  The Company sold 800,000 shares of common stock at
$13.00 per share.  The investors also received warrants to purchase an
additional 120,000 shares of common stock at an exercise price of $15.60 per
share.  The warrants cannot be exercised for 181 days.  The net proceeds to
the Company from the offering, after fees and expenses, will be approximately
$9,845,000. The Keystone Equities Group of Oaks, Pennsylvania acted as
placement agent on behalf of the Company in the private placement.
    "The new funding will enable us to strengthen our balance sheet and
provide additional working capital for general corporate purposes," commented
Richard J. DePiano, Chairman and Chief Executive Officer.
    As the result of the private placement, Escalon Medical will have
5,015,829 shares of common stock outstanding, not including the shares
issuable upon the exercise of the warrants.
    The shares were offered in reliance on an exemption from the registration
requirements of the Securities Act of 1933 (the "Securities Act").  The
offering has not been registered under the Securities Act or any state
securities laws, and the shares may not be offered or sold in the United
States absent registration or an applicable exemption from the registration
requirements of the Securities Act and applicable state securities laws.
Escalon Medical has agreed to file a registration statement covering the
resale by the investors of the shares purchased and shares issuable upon
exercise of the warrants.  This press release does not and shall not
constitute an offer to sell or the solicitation of an offer to buy shares or
warrants and is being issued under Rule 135c under the Securities Act.
    Founded in 1987, Escalon develops, markets and distributes ophthalmic
diagnostic, surgical and pharmaceutical products as well as vascular access
devices.  The Company seeks to further diversify its product line to achieve
critical mass in sales and take better advantage of the Company's distribution
capabilities through internal product development, acquisitions or strategic
partnerships.  Escalon has headquarters in Wayne, Pennsylvania and
manufacturing operations in Long Island, New York and New Berlin, Wisconsin.
    Note:  This press release contains statements that are considered forward-
looking under the Private Securities Litigation Reform Act of 1995, including
statements about the Company's future prospects.  They are based on the
Company's current expectations and are subject to a number of uncertainties
and risks, and actual results may differ materially.  The uncertainties and
risks include whether the Company is able to improve upon the operations of
the Company's business units, generate cash and identify, finance and enter
into business relationships and acquisitions, uncertainties and risks related
to new product development, commercialization, manufacturing and market
acceptance of new products, marketing acceptance of existing products in new
markets, research and development activities, including failure to demonstrate
clinical efficacy, delays by regulatory authorities, scientific and technical
advances by the Company or third parties, introduction of competitive
products, third party reimbursement and physician training as well as general
economic conditions.  Further information about these and other relevant risks
and uncertainties may be found in the Company's report on Form 10-K, and its
other filings with the Securities and Exchange Commission, all of which are
available from the Commission as well as other sources.

Link to this page: