A Medical Device Daily

VeriChip (Delray Beach, Florida) reported that it has entered into a definitive agreement for a $10 million investment commitment with Optimus Technology Capital Partners. The company said it expects to use a portion of the proceeds to fund its development programs with Receptors (Chaska, Minnesota) to develop a virus triage detection system for the H1N1 virus and an in vivo glucose-sensing RFID microchip. The company said it will use the remainder of the funds for working capital and general corporate purposes.

Scott Silverman, chairman/CEO of VeriChip, said, "This financing arrangement was established at terms we believe are very favorable to the company. Importantly, this financing, when completed, fully funds our development partnerships with Receptors for both the virus triage detection system and glucose-sensing RFID microchip, and provides funds for additional working capital."

The company said it may issue convertible preferred shares from time to time in multiple tranches. The preferred will accrue a 10% in kind dividend and provides an option for the Company to prepay with a make-whole premium. The tranches will be convertible into restricted common stock at the market price on the date of each tranche. In conjunction with the financing, R & R Consulting Partners, which is controlled by Silverman, agreed to enter into one or more stock loan agreements with Optimus to facilitate the transaction. The financing is subject to customary closing conditions.

In other financing news:

• Zynex (Littleton, Colorado), a provider of pain management systems and electrotherapy products for medical patients with functional disability, reported that warrants and options to purchase more than 1.5 million shares of the company's common stock have recently expired.

On June 28, 2009 Zynex had certain warrants issued in 2004 to purchase 236,191 shares of common stock issued expire. On Sept. 26, 2009 Zynex had stock options issued in 2004 to purchase a total of 1.2 million shares of common stock expire. Earlier this year warrants to purchase a total of 120,000 shares of common stock from three individual warrant holders also expired.

"The recently expired options and warrants represent approximately 15% of today's float. We believe the expiration of options and warrants is valuable to shareholders because it reduces the potential dilution to shareholders had these options and warrants been exercised," said Thomas Sandgaard, CEO of Zynex.

Zynex develops electrotherapy medical devices in two distinct markets: standard digital electrotherapy products for pain relief and pain management; and the NeuroMove for stroke and spinal cord injury (SCI) rehabilitation.

• Synovis Life Technologies (St. Paul, Minnesota), a biomaterial and surgical products company, reported that its board has approved a program for the company to repurchase up to 500,000 shares of its common stock. Synovis plans to make purchases in either the open market or through private transactions from time to time, in accordance with SEC regulations. The timing and extent to which the company buys back shares will depend on market conditions and other corporate considerations. The repurchase program does not have an expiration date. As of July 31, the company had $58.3 million in cash, cash equivalents and investments.

This marks the second stock buyback program the company has announced in the past 16 months.

Synovis' products include implantable biomaterials for soft tissue repair, devices for microsurgery and surgical tools – all designed to reduce risks and facilitate critical surgeries.