Eccrine Systems (Cincinnati) has raised $1.5 million in seed funding. Investors include CincyTech Fund III, management, and other sources within the CincyTech local, regional and national investor community. Formed in late 2013, the sweat sensor company is developing disposable electronic patch systems based on innovative research and intellectual property that originated from the University of Cincinnati and Air Force Research Labs at Wright Patterson Air Force Base.
According to Jason Heikenfeld, lead UC researcher and co-founder of the company, sweat secreted from eccrine glands in human skin holds great promise as the best non-invasive bodily fluid for the real-time capture and transmission of robust biomarker data. "Although the analysis of sweat goes back to the 1950s, it never gained significant momentum as a non-invasive alternative to blood due to the limitations of fluid collection. One might as well draw a blood sample rather than scoop sweat off the skin repeatedly to get enough of a sample before sending to a lab for testing." Fast forward to the current era of microfluidics, nanotechnology, miniaturized electronics, continuous connectivity and cloud-based computing. Heikenfeld continues, "The convergence of these and other technologies will launch sweat into full prominence as the best non-invasive fluid source for secure, real-time monitoring of human physiological function or dysfunction. We foresee many high value applications for our Sweatronic platform across medicine, industry and sport."
The company is deploying a platform business model that seeks exclusive relationships with downstream partners across multiple market segments. "There are very large opportunities in areas such as medication adherence, clinical trials management, industrial safety, medical diagnostics, treatment effectiveness, nutrition support, and elite performance optimization. The secure, real-time monitoring of sweat biomarkers in these segments offers the potential for valuable breakthroughs in improved safety, effectiveness, and economic outcomes. We bring to each partnership our pioneering IP portfolio, modular Sweatronics platform, and innovative prototyping capabilities. In turn, our market-savvy partners collaborate closely with us to develop and embed Sweatronics patch systems within their respective product offerings," said Beech.
Eccrine Systems is dedicated to improving human health, safety, and productivity through the innovation and development of advanced sweat sensor technologies. The company was founded in 2013 to commercialize technology and intellectual property that was exclusively licensed from the University of Cincinnati, and with the funding support of CincyTech and its expanding community of local, regional and national investment sources.
In other financings:
• LabStyle Innovations (Caesarea, Israel), maker of the Dario Diabetes Management Solution, said it raised $1.6 million in a private placement offering consisting of shares of common stock and warrants. No placement agent was used for this financing.
LabStyle intends to use the net proceeds from the offering to fund continuing manufacturing and sales efforts in existing and new markets and to continue ongoing regulatory work associated with its pending FDA application for Dario, as well as for general working capital.
The investors were all institutional or accredited investors.
Erez Raphael, president/CEO of LabStyle, said, "We are very pleased to have accomplished this financing, as it allows us to continue our efforts to introduce the world to our revolutionary Dario diabetes management platform that we believe creates the potential to improve diabetic patient care. Our 2014 soft launch provided us with excellent feedback from patients, and we are now confident that Dario has the potential to make a real difference in lives of diabetic patients and help them stabilize and improve their medical condition."
LabStyle Innovations makes patented technology providing consumers with laboratory-testing capabilities using smart mobile devices.
• Check-Cap (Isfiya, Israel), a clinical stage medical diagnostics company engaged in the development of a preparation-free ingestible imaging capsule that uses low-dose X-rays for the screening for colorectal cancer, reported the closing of its initial public offering of 2 million units, each unit consisting of one ordinary share and one-half of a Series A warrants to purchase one ordinary share at a price of $6 per unit.
Each unit was issued with one and one-half non-transferrable long-term incentive warrants. The Series A warrants have an exercise price of $7.50 per share and will expire on Feb. 18, 2020. The long-term incentive warrants have an exercise price of $6.90 per share and will expire on Feb. 18, 2022. Simultaneous with the closing of the initial public offering, Check-Cap closed a private placement of 2 million units, each unit consisting of one ordinary share and one-half of a Series A warrants to purchase one ordinary share, at $6 per unit. Each unit was issued with one and one-half non-transferrable long-term incentive warrants.
The aggregate proceeds to Check-Cap from its initial public offering and simultaneous private placement, before deducting underwriting discounts, commissions and offering expenses, was $24 million.
The company intends to use the net proceeds from its initial public offering and simultaneous private placement to finance its clinical program, product development and general corporate purposes.
Check-Cap is a clinical stage medical diagnostics company focused on the development of gastrointestinal imaging devices.
• Tandem Diabetes Care (San Diego), a device company and manufacturer of the t:slim and t:flex insulin pumps, reported that it intends to commence an underwritten public offering of shares of its common stock to raise aggregate proceeds of approximately $60 million. Tandem will also grant to the underwriters a 30-day option to purchase up to an additional 15% of the number of shares sold. All of the shares to be sold in the offering will be offered by Tandem. The offering is subject to market conditions and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.
BofA Merrill Lynch and Piper Jaffray are acting as joint book-running managers for the offering. Deutsche Bank Securities and Stifel are acting as co-managers.