A Medical Device Daily

Spectral Diagnostics (Toronto), a company developing products for the treatment of sepsis, closed its previously reported private placement of 48.75 million units of the company, for gross proceeds of $19.5 million.

The company also issued 2,890,625 common shares to GrowthWorks Canadian Fund at a deemed price of 40 cents per common share as full repayment and final settlement of a non-interest bearing, unsecured convertible promissory note in the principal amount of $1,156,250 dated June 19, 2006 issued by the company to GrowthWorks.

“We are very pleased to have completed this transaction with the support of new and existing shareholders. This successful financing indicates that investors recognize the significant commercial opportunity of the Toraymyxin treatment for severe sepsis [See products, p. 10], in combination with our Endotoxin Activity Assay [EAA] diagnostic, representing a potential $1 billion market in the U.S.,“ said Anthony Businskas, executive VP and CFO of Spectral. “We now have the financial resources in place to begin a pivotal trial in the U.S. in the first half of 2010.“

Spectral's lead product, EAA, is the only FDA cleared assay for the measurement of endotoxin. In March 2009, Spectral obtained the exclusive development and commercial rights in the U.S. for Toraymyxin, a therapeutic for the treatment of sepsis that removes endotoxin from the bloodstream. Spectral will seek FDA approval for Toraymyxin and intends to commercialize the product together with EAA.