Dermacia Inc. Successfully Raises $10 Million to Date in First Round of Private Funding; Gemini Partners Engaged to Explore Additional Financing Opportunities for Cosmeceutical/Skin Care Company
NEWPORT BEACH, Calif, May 19, 2005–Dermacia Inc. today announced that it has raised $10 million since commencing its first round of private funding and that Gemini Partners, Inc., a Los Angeles-based investment banking group, has been engaged to explore additional opportunities to finance Dermacia’s rapid growth and new product initiatives.
The Company recently announced the introduction of a new line of specialized cosmeceutical products designed for a mass worldwide market, augmenting its proprietary Lycogel(TM) line of camouflage makeup designed for post-surgery, post-treatment and dermatological conditions. The term “cosmeceutical” denotes the rapidly growing market for cosmetics and skin care products formulated to provide therapeutic benefits and active ingredients to the user in addition to color and coverage.
Matt Nicosia, Dermacia’s chief executive officer and co-founder, said, “Dermacia’s success in this initial round of private funding is a validation of our business model by accredited investors. We are taking the next step with Gemini to evaluate and meet our capital needs in view of our rapid sales growth and aggressive marketing and product initiatives, including research and development of nanotechnology and genetic science applications in cosmetics and skin care.”
Gemini Partners’ Principal Nathan Johnson added, “Gemini Partners is very excited to work with Dermacia. We believe the Company has a significant opportunity to expand its business and are committed to helping them attain the proper capitalization necessary to realize this potential.”
Dermacia has recently started marketing products over the Internet and is currently in production on an infomercial scheduled to begin airing in September. The Company’s new product line is scheduled for presentation on QVC this summer and fall.
The new exclusive line of foundation, facial concealer, moisturizers and powders addresses the estimated 50 million people who cannot use traditional cosmetics due to sensitive skin conditions, including rosacea, acne, psoriasis, and eczema. These products augment Dermacia’s existing Lycogel(TM) and Dermesse(TM) “medical” product lines, sold today through more than 1,000 physicians’ offices as well as surgical and dermatology centers and pharmacies across the U.S. and Mexico. The new line will be sold to consumers via the Internet and TV direct marketing, and in selected high-end retail locations.
The Company identified a major market void for cosmetics and skin care products combining color and coverage superior to that of traditional makeup brands with revolutionary breathable formulations and therapeutic properties and ingredients. The result was Dermacia’s successful Lycogel(TM) product line. Unlike ordinary cosmetics that suffocate the skin, Lycogel — and all of Dermacia’s product lines — have a patent-pending tissue respiratory factor that increases the amount of oxygen reaching the skin — in effect, allowing up to 300% more air to reach the skin than with leading makeup brands and, most notably, 10% more than wearing no makeup at all.
Lycogel, developed four years ago and exhaustively tested prior to its 2003 market introduction, is available in the U.S. exclusively through physicians. Lycogel is used in numerous top medical clinics, hospitals, universities and burn centers to speed recovery and minimize scarring of burn victims and patients undergoing reconstructive surgery.
Gemini Partners is a Los Angeles-based boutique investment banking firm focusing on small- and mid-cap companies. Since 2002, Gemini Partners has sourced and raised capital in the form of private equity, venture capital and micro-cap public offerings for a number of companies in four focus sectors — healthcare, technology, financial services and media & entertainment. To date, Gemini Partners has been involved in more than 10 micro-cap public offerings, acting in a capital sourcing as well as consulting role. For further information, visit Gemini Partners at www.geminipartners.net
Dermacia Inc., established in 2000, combines biotechnology, cosmeceuticals, cosmetics, nanotechnology and leading edge genetic science as the technology hub for skin care products marketed under the Lycogel(TM) name and a growing portfolio of other brands. Lycogel products, sold exclusively through medical professionals, are designed for post-plastic surgery cover and special camouflage applications, facilitating rapid healing of wounds and minimization of scarring while providing effective, flawless cover.
The Company’s proprietary Lycogel Complex(TM), with tissue respiratory factors and a breathable triple-silica gel base, delivers additional oxygen to wound areas to promote rapid healing and minimization of scarring. The line includes a camouflage foundation, concealer and a moisturizing recovery serum spray. Extending Lycogel technology to the broader public, Dermacia has recently introduced its first consumer lines, offering similar therapeutic benefits, color correctness and Dermacia’s legendary sheer cover. The Company, based in Newport Beach, California, sells its products in the U.S. and internationally. More information is available at www.dermacia.com