A Medical Device Daily
ClearCount Medical Solutions (Pittsburgh) has closed a $3.4 million Series B financing round. The company plans to use the funds to drive sales and product development of its RFID-based solutions designed to prevent retained surgical sponges.
The round was led by Draper Triangle Ventures, Midwestern-based Network Partner of Draper Fisher Jurvetson.
"Thanks to the continued support of our investors, the company is positioned to drive sales growth of our existing products while continuing to bring new and innovative products to the market." said David Palmer, CEO of ClearCount. "We will continue to build and expand on our RFID platform in the Operating Room."
"The investment team and the industry in general have been impressed with the achievements of ClearCount Medical Solutions," said Mike Stubler, managing director of Draper Triangle. "The company has landed marquis hospital clients, developed new product offerings, gained national attention, won awards, and continued to develop important relationships. We are excited to expand our support of ClearCount."
As of October 2008, the Centers for Medicare and Medicaid Services and a number of private insurers no longer reimburse hospitals for procedures associated with "never" events such as left-behind surgical sponges.
The SmartSponge System is the first and only system to incorporate the efficiency of counting with the safety of detection for the purpose of preventing a retained object during surgery. The SmartSponge System is the only system to provide continuous vs. episodic counting. Providing an average of 80,000 counts per procedure, this continuous counting benefit makes the difference in complex surgeries where shift changes and delays often occur, as well as providing valuable assurance in every surgical case.
Augmenix (Waltham, Massachusetts) closed a $6.1 million Series B financing. The round was led by Ascension Health Ventures with continued participation by existing investors, Versant Ventures and Pinnacle Ventures. The proceeds will be used to conduct the clinical and commercial development of the SpaceOAR System – an injectable tissue spacer that will decrease rectal morbidity or enable improved efficacy in prostate radiotherapy – in Europe and the U.S., as well as to develop other products in the Augmenix pipeline.
In other financing news:
• Diagnostics maker Biomagnetics Diagnostics (San Francisco) has completed its equity financing designed to fund entry into the integrated optical biosensor systems market. Through this round of equity financing the company received cash and commitments of about $1 million from several private investors and a single philanthropic organization. "We view the market for both malaria and bovine tuberculosis testing to be significantly underserved with few viable field deployable technologies available. In 2010 we plan to introduce a new generation of products to target this area. This equity financing will be instrumental in this market entry," said Clayton Hardman, CEO of Biomagnetics Diagnostics. "We believe this technology upon commercialization will not only be profitable for Biomagnetics and our investors, but will also provide an important tool in the medical, research and anti-bioterrorism communities that can potentially improve and save lives."
• Encorium Group (Berwyn, Pennsylvania), a contract research organization, has completed a private placement of 3,937,500 shares of its common stock with a private investor for an aggregate purchase price of $1,575,000, or 40 cents per share. Prior to the transaction, the company entered into warrant exchange agreements with two investors pursuant to which the company issued to the investors an aggregate of 1,864,000 shares of common stock and warrants to purchase an aggregate of 874,126 shares of common stock, exercisable for a period of five years, at an exercise price of 40 cents per share. The exchange shares and exchange warrants were issued in exchange for warrants dated as of May 9, 2007 held by the investors to purchase an aggregate of 874,126 shares of common stock of the company. The company has also terminated negotiations for the sale of its subsidiary Encorium OY to a clinical research organization based in the U.S.
• Apollo Medical Holdings (Glendale, California) reported that it has completed the sale of convertible notes and warrants through a private placement offering. In connection with the private placement, the company will receive gross cash proceeds of $1.25 million.
Apollo said it intends to use net proceeds from the offering for physician recruitment and start-up expenses related to new contracts, marketing, upgrading of its web-based ApolloWeb software, repayment of debt and to support general operations. The convertible notes and warrants are convertible into shares of Apollo's common stock at an initial price of $0.125 per share. The 10% notes will mature on January 31, 2013.
Syndicated Capital acted as the exclusive placement agent for the transaction.