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Alachua biotech firm AxoGen enters into $20.8 million financing agreement

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Stafrf Report
Local
18 October 2012
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ALACHUA – AxoGen, Inc. and PDL BioPharma, Inc. have entered into a structured financing agreement, which will provide $20.8 million to AxoGen.  Founded in 2002, AxoGen makes products and technologies that help repair nerve damage, and is located in Alachua’s Progress Corporate Park. Based in Nevada, PDL focuses on intellectual property asset management, investing in new revenue generating assets and maximizing the value of its patent portfolio and related assets.

AxoGen reports that the financing will allow the company to strengthen and accelerate its sales and marketing efforts as well as to explore pipeline opportunities.

The total financing of $20.8 million includes $19.05 million in cash PDL paid to AxoGen on Oct.5, 2012 and $1.75 million PDL paid to AxoGen on Aug. 14, 2012. The firm reports that net proceeds were approximately $14 million after repayment of $5 million in existing debt and payment of transaction related fees and expenses.

A revenue agreement between the two firms calls for an eight year term and provides PDL with royalties based on AxoGen revenues, subject to certain minimum payment requirements beginning in the fourth quarter of 2014 and the right to require AxoGen to repurchase the revenue contract at the end of the fourth year. AxoGen has been granted certain rights to call the revenue contract in years five through eight. John McLaughlin, President and Chief Executive Officer of PDL, was elected to the Board of Directors of AxoGen, Inc. immediately following the closing.

“PDL is an exciting partner for AxoGen. The PDL team has a strong track record of creating commercial value and their knowledge will be an asset as we build AxoGen’s business,” said Karen Zaderej, CEO for AxoGen.

“The PDL transaction provided both operating capital and the ability to pay off AxoGen’s existing bank debt,” said Greg Freitag, AxoGen’s CFO and General Counsel. “We were able to raise significant capital without diluting our outstanding share-base while maintaining a clean capital structure. Furthermore, our agreement provides extensive flexibility for future financing and business development activity.”

AxoGen ’s products offer surgical nerve reconstruction solutions including Avance® Nerve Graft, the only commercially available processed nerve allograft for bridging severed nerves, AxoGuard® Nerve Connector, a coaptation aid allowing for close approximation of severed nerves, and AxoGuard® Nerve Protector, a bioscaffold used to reinforce a coaptation site, wrap a partially severed nerve or isolate and protect nerve tissue.  The company sells its products in the United States, Canada, Italy, and Switzerland.

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Pumpkins galore at annual pumpkin patch

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AYANNA STEWART
Local
08 October 2012
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W_-_pumpkin_patch_DSCF7262_copySelecting that perfect pumpkin can be a daunting task when there are thousands from which to choose.  The First United Methodist Church’s annual pumpkin patch on U.S. Highway 441 in Alachua is in full swing throughout the month of October.

ALACHUA – If you’re craving pumpkin, First United Methodist Church’s annual pumpkin patch might just be for you.

With the fall season in full swing and Halloween just around the corner, there’s no better time to get in the spirit than now.  And nothing says ‘fall’ better than pumpkins.

Whether for carving into jack-o-lanterns, baking in a pie or simmering in a stew, pumpkins of every kind are available.

The 12th annual Pumpkin Patch, located on U.S. Highway 441 north of Hitchcock’s Market, is open for business Monday through Thursday from 9 a.m. to 8 p.m., Friday and Saturday from 9 a.m. to 9 p.m. and Sunday from noon to 8 p.m.

The pumpkin patch was opened Sept. 26, and it will be open until the end of October. Prices for pumpkins range from $1 to $50, depending on the size.  There are 2,500 pumpkins in the pumpkin patch, and more will be added mid-October.

First United Methodist Church Pastor Lamar Albritton said the pumpkin patch is a youth fundraiser, but it’s also a ministry.

“It’s a church-wide effort,” he said. “The body of Christ works together.”

Members of the church volunteer to man the pumpkin patch, and Albritton said the church has prayed the event will go smoothly.

He said the church welcomes everyone who visits the pumpkin patch, regardless of whether they’re buying pumpkins or just stopping by to enjoy the vast display of the colorful gourds.

“We try to reflect Jesus Christ through how we welcome people,” he said.

He said some people have joined the church after visiting the pumpkin patch.

“They said the reason they came is because they felt so welcomed out there,” he said.

Every child who visits the pumpkin patch will receive a free gift.

“We try to reach the children in a special way,” Albritton said.

Money raised from the patch are the main source of funding for the church’s youth mission trip. Students will travel to the Appalachian Mountains and partner with the Appalachia Service Project to help repair homes. Other churches from around the country will also help with the project. Albritton said it’s a good experience because it combines hard labor and building relationships with people.

“We’re there to love them,” he said.

The money will also help fund summer camps and other youth events.

The public is also invited to attend a fall festival Oct. 28 at 2 p.m. The event is free to everyone and will include free food, a bounce house, a hay bale maze,  hayrides and numerous other activities.

“Come and join a family friendly, fun atmosphere,” Albritton said.

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email astewart@alachuatoday.com

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Grapski arrested for probation violations

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Bryan Boukari
Local
08 October 2012
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Violations for prescription drugs and drug tests

GAINESVILLE - Political activist Charles Grapski, who is on probation for the 2007 battery of an Alachua police officer, has been arrested and charged with multiple violations of his probation.

According to the Department of Corrections Violation Report filed with the court, the first incident happened Sept. 21, 2012 when Grapski refused to submit to a random drug test.

When the probation officer called Grapski on Sept. 20 to inform him about the random drug test, Grapski became “verbally hostile” and “screamed and yelled so loudly until this officer could not speak,” according to the report. The officer noted that Grapski “was so hostile until he sounded like he was having some type of mental breakdown.” The officer eventually hung up on Grapski and transferred Grapski to a supervising officer, according to the report.

In the “Offender Statement” portion of the Violation Report, Grapski is shown to argue that he is not on probation for drug charges and should not have to be tested for drugs. He then refused to submit to a drug test until he talked to his lawyer.

University of Florida law professor Joe Little, who has represented Grapski numerous times, has since submitted a limited notice of appearance in the case.

Condition 11 of Grapski’s original Order of Probation states, “You will submit to random testing as directed by your officer or the professional staff of the treatment center where you are receiving treatment to determine the presence or use of alcohol or controlled substances.”

In addition to refusing to submit to a drug test, Grapski was arrested Sept. 23 when probation officers found Xanax and Trazadone in a box sitting on Grapski’s bed in his Osceola County home.  Xanax is a drug used to treat anxiety, and Trazadone is used in the treatment of depression.

According to the reports, Grapski claimed the pills were from previous prescriptions, but he was unable to produce the prescriptions when officers asked for them, so he was arrested and taken to the Osceola County Jail.

Due to the above incidents, Grapski’s probation officer, Earline White, wrote in the probation violation reports that, “It is the belief of this officer that the offender is not amendable to probation supervision. It is unreasonable to believe, that this offender should be permitted to remain on probation, when he cannot follow simple instructions, such as reporting when instructed and submitting to a drug test. At this point, officer safety is now an issue.”

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High Springs residents rally to form grassroots group

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C.M. WALKER
Local
08 October 2012
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W_-_HS_Citizens_JGroup_DSCF7234_copyConcerned Citizens for a Better High Springs hosted a lunch for City employees on the heels of a 6.07 percent pay cut.

HIGH SPRINGS – Members of the newly-formed group, “Concerned Citizens for a Better High Springs” (CCBHS), delivered lunch on Wednesday, Oct. 3, for City of High Springs employees affected by the recent 6.07 percent salary cut to all non-union City employees.

“We want to encourage our City employees to hang in there by providing support in a meaningful way,” said CCBHS Publicity Chair Sharon Yeago.  “Our employees are taking a financial hit for the benefit of the city.  We want them to know how much we appreciate their efforts and supplying lunch is one small way we can help relieve one burden, the financial responsibility of lunch, and show our appreciation,” said Yeago.

The group, which has grown to more than 150 members in fewer than five days, was “formed to support good policy decisions in our government,” said CCBHS Steering Committee Chair and High Springs resident John Manley. Other members of the Steering Committee include local residents Becky Johnson, Bob Jones and Linda Jones.

Both Yeago and Manley are proud that they were able to attract so many citizens interested in supporting good policy decisions by city government in such a short time using Facebook, email and personal outreach.

“We are a nonpolitical, nonpartisan organization,” explained Yeago.  The group has already created a mission statement and guiding principles, which are all listed on the organization’s Facebook page. The group’s mission and key principles are to provide for professional, experienced management of the City of High Springs and restoration of long-held standards of governing that include a comprehensive budget process and restoring High Springs’ reputation as a fair and open government that is inclusive, open and fair.

Steering and Events committees have been established by the group,” said Yeago.  One of the first actions of the Events Committee is the provision of Wednesday’s lunch for non-union city employees.  Events Committee members include Ed MacKinnon, Linda Hewlett, Tom Hewlett, Lisa Phelps and Sandra Webb.

“This citizens group came together out of a deep concern and love for the city of High Springs.  This city is at a crossroads,” Manley said.  “We feel it is important to put any history aside, and build a broader, more rational and encompassing plan for the future of High Springs that the majority of the citizens can get behind and work to make happen,” explained Manley.

“We are encouraging citizen participation in deciding the direction of our city,” said Yeago.  “This is a group to help our government consider policy decisions that make our city viable,” she said.  “Our group has no political agenda.  We just want to help the city make the best decisions they can for our citizens and the future of High Springs,” she said.

Yeago explained further, “Our agenda is based on good policy and we will be making what we consider to be good policy recommendations on an ongoing basis.  Good policy transcends politics.  It’s not about who happens to be in the office at the moment.  It’s about how our government serves its citizens now and in the future.”

“What we’re trying to do is develop solutions for what we feel are the problems we now have,” Manley said.  “We are a strategic group, not a political group,” he insisted.  “Politics is not a part of what we’re doing.  We want to contribute solutions and encourage other citizens to get involved to help do the same,” he said.

“We have problems that may take 5 or 10 years…or possibly more, to solve.  Previous commissions made decisions under different economic conditions than we have today.  Perhaps we have to look at earlier decisions in a different light given our current economic condition.  We want a city that is professional and well run,” he said.  “We just want to participate in the process.”

Anyone interested in more information about Concerned Citizens for a Better High Springs may locate their website on Facebook or contact a member of the organization.

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email Cwalker@alachuatoday.com

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Langman termination hearing set for Oct. 11

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C.M. WALKER
Local
08 October 2012
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HIGH SPRINGS – The High Springs City Commission has set a hearing date of Oct. 11 to consider former City Manager Jeri Langman’s appeal of their decision to terminate her employment.  The hearing was set during a special city commission meeting held Oct. 2; at the same meeting in which commissioners short-listed replacement candidates for her position.

Langman initially requested a hearing date of Oct. 25, the second regularly scheduled meeting of the month, to give her attorney time to prepare for the hearing; noting that she had requested, but not yet received, a list of goals and directions commissioners gave as the reason for her termination.

Because the requested date was past the 30-day deadline called for in the High Springs City Charter, the Commission denied her first request.

Langman then asked for a hearing on Oct 18 or 16.  Noting that Commissioner Sue Weller would be out of town on those dates, the Commission denied her second request as well.

Commissioners decided on the Oct. 11 date because it would fall on a regularly scheduled Commission meeting night.  Mayor Dean Davis directed Interim City Manager/City Clerk Jenny Parham to include the hearing on the agenda as the last item, saying that citizens wouldn’t have to sit through a lengthy hearing before getting to the business on the agenda.  As of press time, 16 new items were recently added to the agenda for that meeting, all scheduled for consideration prior to the Langman termination hearing.

Commissioners also asked Parham to locate an attorney, if a new city attorney wasn’t on board by that date, to act on the City’s behalf during the hearing.

The City Charter specifies a quasi judicial hearing as the format for a hearing on the termination of a charter officer.  During a quasi judicial hearing, the meeting is open to the public, but anyone giving testimony must be sworn in prior to testifying and are usually restricted to facts without personal opinions.

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email Cwalker@alachuatoday.com

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