A Medical Device Daily

Oxygen Biotherapeutics (Durham, North Carolina) reported that it has received $3 million from Vatea Fund as partial payment for the company's achievement of a milestone under the Securities Purchase Agreement dated June 8, 2009, as amended Sept. 1, 2009.

The milestone triggering this tranche was achieved in September, but the payment was only due by December 10. The Vatea Fund is expected to deliver the remaining $3 million by the end of this week to complete this latest financing tranche.

Adjusted for the recent one-for-15 reverse split, the achievement of the milestone calls for Vatea Fund to purchase 1.6 million shares of Oxygen Biotherapeutics stock from the company for $6 million with the transaction to close no later than Dec. 10, 2009.

"This latest financing should have us entering calendar year 2010 in great shape," said company chairman/CEO Chris Stern. "With this latest tranche, Vatea Fund will have closed on $11 million of a committed $20 million in milestone-triggered financing. With cash in the bank, an improved balance sheet, a pending listing market change, expected revenue from product sales, Oxycyte Traumatic Brain Injury trials in progress, and $9 million more in financing committed from the Vatea Fund, the company should be in an excellent position to pursue its development plans and commercial goals."

Oxygen Biotherapeutics is dedicated to commercializing pharmaceuticals and devices in the field of oxygen therapeutics and Defense Medicine. The company has developed a perfluorocarbon (PFC) therapeutic oxygen carrier and liquid ventilation product (Oxycyte) and has out-licensed an implantable glucose sensor. These products are based upon core technologies that include biomedical applications for PFCs as well as medical and industrial applications for biosensors.

In other financings news, instaCare (Los Angeles) reported that it has renewed its revolving $2 million credit facility with Centurion Credit Resources through Dec. 31, 2010. Among other things the facility provides for seasonal increases in the maximum facility amount up to $2.5 million. instaCare has used the credit line as a foundation for its medical distribution business which has grown by over 450% in the last two years.

"Our credit line provides substantial resources and liquidity for the company to initiate our important, aggressive and revolutionary business strategies," said Keith Berman, instaCare's CFO. "Although the business environment has improved in the last several months, and some credit is now flowing, we want to make it clear to our shareholders and the investing public that instaCare has never lacked for capital. Centurion Credit Resources has filled each and every loan request the company has made."

Robert Jagunich, Chairman of instaCare, commented, "With the significant revenue streams we now have, which in 2010 may exceed $45 million, when coupled with this renewed access to growth capital, we are now well positioned to embark on this mission to link our existing base of patients and service providers to a new base of patients including the uninsured and underinsured Americans."

In addition to the company's growing medical distribution business, our MD@Hand and Practice Probe EMR technologies allow physicians to gain access and securely store electronic medical records without the need of a stand-alone computer, tablet PC or PDA. The company estimates that its application to the Verizon Windows phones will allow EMR permanent storage for up to 5,000 patients for up to 10 years. The company said that Apple iPhone, Palm Pre, the RIM Blackberry phones and the Google Droid allow for similar impressive performance, although permanent storage is slightly less.