A Medical Device Daily

InVivo Therapeutics (Cambridge, Massachusetts), a company focused on the development of technologies for the treatment of spinal cord injuries (SCI), reported that it has successfully closed a private placement offering of 13 million units of its securities for total gross proceeds of $13 million.

The company had reported on Oct. 27 that it completed a placement of 10.5 million units of such securities. The additional 2.5 million units sold subsequently enabled the company to reach the maximum overallotment for the offering.

Spencer Trask Ventures served as placement agent for the financing and financial advisor to the company.

Each unit sold in the private placement consists of one share of common stock of InVivo and one warrant, with each warrant entitling the holder to purchase one share of common stock for a five-year period at an exercise price of $1.40 per share. Warrants issued to investors in the private placement, if exercised or called, would yield additional total gross proceeds of $18.2 million.

“We are very pleased with how our financing was received by investors and see it as vote of confidence in the promise of our groundbreaking technologies,“ said Frank Reynolds, CEO of InVivo. “InVivo now has a strong balance sheet with which to execute our strategic plan, which includes moving into human clinical testing with our lead product candidate in the first half of next year.“

Warrants issued in the private placement are callable by InVivo if the common stock trades for a price equal to or greater than $2.80 per share for twenty consecutive trading days following the effectiveness of a registration statement. Including the shares sold in the private placement, InVivo has total shares outstanding of approximately 51.6 million. Net proceeds received from the sale of units are expected to be used for research and development, repayment of certain debt, fixed asset additions and working capital and general corporate purposes.

InVivo is a device company focused on utilizing polymers as a platform technology to develop treatments to improve function in individuals paralyzed as a result of traumatic spinal cord injury.

In other financing news:

• OnShift (Cleveland), a provider of staff scheduling and shift management software for the healthcare industry, reported that it has closed on a $2.3 million venture capital investment, led by Draper Triangle Ventures. All existing OnShift investors joined this round of funding, including Early Stage Partners, JumpStart, North Coast Angel Fund and Glengary.

This investment will be used to accelerate OnShift's sales and marketing efforts and increase its market share in the healthcare industry. OnShift is experiencing significant business growth, with customer acquisition increasing more than 500% year-over-year.

Michael Stubler, managing director and co-founder of Draper Triangle Ventures, will join the OnShift board.

“At OnShift, we are investing in a strong team with great leadership,“ said Stubler. “The company has a unique offering that is having a compelling impact on customers. We are pleased to partner with the OnShift team to help accelerate the adoption of their solutions in the market.“

Long-term care companies and other healthcare organizations use OnShift's web-based staff scheduling software to reduce labor costs by preventing overtime, mitigate regulatory compliance risk, and improve efficiencies through automated scheduling and open shift management. This saves time and frees up nurses so they can focus on providing quality resident care.

• ConvaTec Healthcare (Skillman, New Jersey), a manufacturer of medical technologies for community and hospital care, reported that in connection with a refinancing of its debt under its existing senior secured and mezzanine facilities and in combination with new senior secured credit facilities, it is offering $1.87 billion in senior secured notes and senior notes.