Press Release: August 16, 2017
Venture capitalist Barry Honig is well-versed in helping start-ups and growing businesses acquire the capital needed for growth and expansion, and after more than two decades in the profession, he knows exactly what to look for, especially in the unique and challenging world of biotech.
In the biotech industry, the innovators – the MDs responsible for new technology – typically don’t actually work for the company producing the product. Instead, they turn their invention over to a VC firm to create a start-up company, often receiving in return only a very small percent of equity; they have a lot to lose if they leave their career for the uncertain financial future of a start-up. Doctors are very cognizant of the fact that walking away from the medical world is often a choice that cannot be undone. This is especially true at the type of world- renowned institutes where the best and brightest (read: innovators) build their reputations.
Two biotech innovators have turned that conventional wisdom on its head, however, and the business world is taking note. Drs. Denver Lough MD, Ph.D. and Ned Swanson, MD walked away from their positions at Johns Hopkins Hospital (Department of Plastic and Reconstructive Surgery), becoming the CEO and COO of Majesco Entertainment Co. (Nasdaq: COOL) in a reverse merger. By joining their technological innovation, a groundbreaking process to regenerate fully-functioning new tissue (including skin, bone, muscle, cartilage, and blood vessels) with Majesco, a dormant public company, Lough and Swanson retain greater ownership in PolarityTE, their new company, then they would have in a traditional arrangement. Reverse mergers also take significantly less time and money than the IPO process, allowing for a more expedient way to raise public capital.
Barry Honig, along with billionaire investor Philip Frost and his team, provided the venture capital for the merger. Honig and Frost are well-versed in reverse mergers, having used the method successfully within the biotech industry on numerous projects. As far as they were concerned, investing in the Lough and Swanson was a no-brainer. The fact that the doctors believed in their revolutionary process strongly enough to walk away from their medical careers was the critical factor. In addition, a number of other talented individuals have already been recruited to PolarityTE from some of the world’s most respected medical institutions. The huge potential for growth based on the wound care business – a $30 billion juggernaut – and the large amount of equity PolarityTE has to offer prospective team members thanks to that reverse merger, has already paid off with more of the previously unthinkable; experts leaving established careers practicing medicine to move into the biotech business world, thereby rapidly enriching the start-up with world-class talent.
Innovation breeds innovation. PolarityTE is on its way and everyone, from Barry Honig and Philip Frost to Drs. Lough and Swanson, couldn’t be prouder, or more excited to see what the future brings.
Barry Honig is an entrepreneur and CEO of GRQ Consultants, Inc. Renowned for innovative investment strategies, Mr. Honig continually seeks out tech and other investment opportunities. Barry Honig also founded the Barry & Renee Honig Charitable Foundation which supports youth after-school programs. For more information, go to BRHCharitableFoundation.com or contact Mr. Honig at [email protected]
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