A Medical Device Daily
Last year the NorTech Venture Capital Advisory Task Force (Cleveland) reported in its inaugural 2006 Venture Capital Report that the region would need to generate and attract over $1.2 billion in venture capital by 2011 in order to meet the capital needs of companies located in Northeast Ohio.
According to the findings from the recently completed "2007 Venture Capital Report of the Cleveland+ region," to be released in print mid-February, Northeast Ohio has made significant progress toward reaching this goal. With $318 million in new investments, compared to $157 million in 2006, the region saw a doubling in the amount of capital invested into its growing companies as well as a 40% increase in the total number of investments made during 2007.
The most noteworthy industry sector detailed in the report was bioscience, comprised of biopharmaceuticals, medical devices, healthcare services and IT, which accounted for approximately 75% of the capital raised. In particular, biopharmaceuticals accounted for just over 50% of all capital investment for the region.
NorTech, the Northeast Ohio Technology Coalition, is a technology-based economic development organization and catalyst for making Northeast Ohio a global leader in technology, innovation, and entrepreneurship.
China Sky One Medical (Harbin, China), a manufacturer of pharmaceutical, medicinal and diagnostic products in China, reported that it raised $25 million in a private placement of 2.5 million shares of the company's common stock, with 30% warrant coverage. The warrants have an exercise price of $12.50 per share and a term of three years.
The company said it intends to use the proceeds from the offering for acquisitions, working capital and sales and marketing for new products.
Global Hunter Securities acted as the sole placement agent in this transaction.
China Sky One is a Nevada-registered holding company with principal operations through its subsidiaries, Harbin Tian Di Ren Medical Science and Technology and Harbin First Bio-Engineering, which are engaged in the manufacturing of medicinal and diagnostic kit and pharmaceutical products.
In other financing news:
- The board of CardioTech International (Wilmington, Massachusetts) has approved the adoption of a stockholder rights plan under which all stockholders of record as of Feb. 8 will receive rights to purchase shares of a new series of preferred stock.
The preferred stock will be distributed as a dividend. Initially, the stock will attach to, and trade with, the company's common stock. The stock will become exercisable if (among other things) a person or group acquires 15% or more of the company's common stock.
CardioTech makes polymer materials. - Cardium Therapeutics (San Diego) reported that it has completed its previously disclosed $5.3 million registered direct offering with institutional and other accredited or qualified investors (Medical Device Daily, Feb. 1, 2008).
Empire Asset Management acted as the sole placement agent for the transaction.
Cardium and its subsidiaries, InnerCool Therapies and Tissue Repair (TRC; both San Diego), are medical technology companies primarily focused on the development of therapeutic products and devices for cardiovascular, ischemic and related indications.
Cardium's InnerCool Therapies subsidiary is involved in field-of-temperature modulation therapy designed to rapidly and controllably cool the body in order to reduce cell death and damage following acute ischemic events such as cardiac arrest or stroke, and to potentially lessen or prevent associated injuries such as adverse neurological outcomes.
The TRC subsidiary is a biopharmaceutical company focused on the development of growth factor therapeutics for the treatment of severe chronic diabetic wounds. Other potential applications for TRC's gene activated matrix technology include therapeutic angiogenesis (cardiovascular ischemia, peripheral arterial disease) and orthopedic products, including hard tissue (bone) and soft tissue (ligament, tendon, cartilage) repair.