Staff Report

Nanosphere (Northbrook, Illinois), a specialist in molecular diagnostics systems, reported the pricing of its previously reported underwritten public offering of 40 million shares of its common stock at a public offering price of 50 cents per share. In connection with the offering, the company has also granted the underwriters a 30-day option to purchase up to an additional 6 million shares of common stock to cover any over-allotments. As part of the fee payable to the underwriters in connection with the offering, the company will issue 400,000 shares of common stock to the underwriters, plus up to an additional 60,000 shares of common stock in the event that the underwriters exercise their over-allotment option. Chardan Capital Markets is acting as the sole book-running manager for the offering.

Net proceeds from the sale of the shares of common stock after underwriting discounts and commissions and other offering expenses are expected to be approximately $18.4 million. If the underwriters exercise their over-allotment option in full, net proceeds from the offering will be around $21.2 million. The offering is subject to customary closing conditions and is expected to close on Monday, October 27.

The company plans to use the net proceeds from the offering for general corporate purposes and working capital.

The offering was made pursuant to a prospectus supplement to the company's prospectus, dated November 5, filed as part of the company's effective $100 million shelf registration statement.

Nanosphere makes the Verigene system, which uses core gold nanoparticle chemistry to offer highly sensitive, highly specific molecular diagnostic results through low-cost multiplexing. The Verigene System detects infectious pathogens and drug resistance markers by mapping the genome of a particular bacterium. Currently, Verigene assays target infections of the bloodstream, respiratory tract and gastrointestinal tract. The system also offers additional capabilities in cancer, cardiovascular disease and autoimmune disease.

In other financings:

• Gamma Medica (Salem, New Hampshire), a maker of advanced digital molecular imaging technologies, reported a $6.5 million growth capital financing facility from specialty finance company Hercules Technology Growth Capital and $5 million from existing investor Psilos Group. The new investment will power Gamma Medica's increased sales and marketing efforts and help grow adoption of Molecular Breast Imaging (MBI) on a global scale the company said in a statement.

Gamma Medica's flagship product, the FDA-approved, fully digital LumaGEM MBI system, is intended for women with complex breast anatomy, such as dense breast tissue, where screening mammogram and ultrasound miss many early cancers. Molecular Breast Imaging detects lesions as small as five millimeters and has demonstrated sensitivity and specificity equivalent to that of MRI at a fraction of the cost.

Gamma Medica's LumaGEM Digital MBI system is the first commercially available, dual head, fully solid-state digital imaging system using cadmium zinc telluride (CZT) technology for molecular breast imaging.

• Yukon Partners (Minneapolis), a provider of mezzanine financing for middle market private equity transactions, reported a subordinated debt and equity investment in AccuMED Innovative Technologies (Buffalo, New York), a maker of textile-based medical products. The specific terms of the transaction were not disclosed.

MVC Private Equity Fund sponsored the transaction whereby Yukon acquired a minority equity interest and MVCPE acquired a majority equity interest in AccuMED. Subordinated debt financing was also provided by Yukon. BMO Harris Bank served as administrative agent on the senior credit facility with Fifth Third Bancorp also participating in the transaction and serving as the documentation agent. Management will own a meaningful interest in AccuMED and will continue to operate the business on a day-to-day basis.

AccuMED is a global, textile-based contract manufacturer focused on healthcare product companies and OEMs of medical devices and supplies, including respiratory disorder, vascular compression, and patient transfer products.

No Comments