Biomatrix Inc. on Monday announced that it has reached afunding agreement for its Biomatrix Medical Canada unit withthe Quebec government.
The provincial government will provide about $1.1 million(C$1.33 million) as a loan without interest for two years, to beused for investments in facilities and equipment. The principalamount will not be owed until the company is profitable, saidGeorge Oram, Biomatrix president.
In return, Quebec will have an option to purchase up to 4.65percent of the unit's class A shares.
A similar loan for about $1 million (C$1.2 million) is underdiscussion to fund Canadian-based research and development.
Biomatrix Canada, based in Montreal, plans to begin marketingin Canada in the fall two hylan-based therapeutics for arthritisand ophthalmology.
The Ridgefield, N.J.-based parent company (NASDAQ:BIOX) isdeveloping therapeutic biomaterials and skin-care productsbased on a class of patented biopolymers, called hylans, whichare modified forms of hyaluronic acid. The company also saidMonday that it lost $1.2 million, or 13 cents a share, onrevenues of $740,703 in the first quarter. In the 1991 period,the loss was $712,580, or 12 cents, on revenues of $648,694.Its stock closed unchanged at $7.50 on Monday. -- KB
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