A Medical Device Daily
NewCardio (Santa Clara, California), a cardiac diagnostic technology provider, reported that it closed a private placement financing with institutional and other accredited investors, including members of NewCardio's management team and board of directors, who purchased more than half of the offering. Gross proceeds of about $2.9 million were generated through the issuance of approximately 2,900 shares of a new Series C convertible preferred stock at $1,000 per share and convertible into about 2.9 million common shares, together with approximately 2.9 million common stock purchase warrants having an exercise price per share of $1.20.
The Benchmark Company served as the placement agent, who engaged Hallmark Investments as a selected dealer in this transaction.
NewCardio is a cardiac diagnostic and services company focused on the development of a proprietary platform technology to provide higher accuracy to, and increase the value of, the standard 12-lead electrocardiogram (ECG). NewCardio's development-stage software and hardware products and services are intended to improve the diagnosis and monitoring of cardiovascular disease, as well as cardiac safety assessment of drugs under development.
In other financing news:
• SXC Health Solutions (Lisle, Illinois) reported the pricing of its previously disclosed public offering of common shares. Under the offering, SXC will sell 4.5 million common shares at a price to the public of $41.50 per share. The offering was increased from the previously disclosed offering size of 3.5 million common shares. In connection with the offering, SXC has granted the underwriters a 30-day option to purchase up to an additional 675,000 of its common shares at the public offering price to cover any over-allotments. The offering is expected to close on Sept. 23, 2009, subject to customary closing conditions.
SXC said it expects to receive net proceeds from the offering of about $176.6 million (or approximately $203.3 million if the underwriters exercise their over-allotment option in full), after deducting the underwriting discounts and commissions and estimated offering expenses.
The company said it intends to use the net proceeds from the offering for general corporate purposes, which may include financing potential acquisitions and strategic transactions, funding capital expenditures and providing working capital to enhance capital and maintain financial flexibility.
The lead managers of the offering are Dougherty Co., SunTrust Robinson Humphrey, and Versant Partners, and the co-managers are Oppenheimer Co. and Paradigm Capital U.S.
SXC is a provider of pharmacy benefit management (PBM) services and healthcare information technology (HCIT) solutions to the healthcare benefits management industry. As the industry's "technology-enabled PBM, SXC's product offerings and solutions combine a wide range of advanced PBM services, software applications, application service provider processing services, and professional services to help healthcare organizations reduce the cost of prescription drugs and deliver better healthcare to their members. SXC serves many of the largest organizations in the pharmaceutical supply chain, such as health plans; employers; federal, provincial, and state governments; institutional pharmacies; pharmacy benefit managers; and retail pharmacy chains.
• International Isotopes (Idaho Falls, Idaho) reported the successful conclusion of a private placement completed among numerous directors, past investors and major shareholders. successfully completed a private placement with certain shareholders on Sept. 18 for just under $1 million. In this private placement, the company offered about 4 million units, each unit consisting of one share of common stock, priced at 30 cents per common share, and one warrant to purchase another share of common stock for 40 cents. In a related transaction the company also converted about $380,000 of indebtedness owed to a past chairman of of the company into units under terms similar to the private placement. All of the issued shares will be unregistered securities.
The net proceeds from the private placement will be used to support ongoing engineering design and license application preparation efforts for the company's planned uranium processing and fluorine extraction facility. The planned facility remains on schedule with the next anticipated major milestone of submitting its license application to the Nuclear Regulatory Commission later this year.
The offering was entirely led by the company, and there were no selling commissions or fees paid by the company, other than standard legal expenses for document preparation.
"The funding from this private placement will see the project through license submittal later this year and efforts are already well underway for the next major round of financing to continue project development well into the future," said company CEO Steve Laflin. "In parallel with these fundraising efforts, the Company reports continued progress towards putting contract agreements in place with prospective customers for the products and services this project will provide."
International Isotopes manufactures a full range of nuclear medicine calibration and reference standards, high purity fluoride gases, and a variety of cobalt-60 products such as teletherapy sources.
• INVO Bioscience (Beverly, Massachusetts), a device company focused on treatment options for patients diagnosed with infertility, reported that the $500,000 private placement/or equity securities financing that was outlined in the 8K filing dated July 2009 has been fully subscribed. "This financing will allow INVO to bridge to long term financing in which terms are currently being negotiated as well as allow us to continue to with product launch," said Kathleen Karloff, CEO of INVO.
• Bruker (Billerica, Massachusetts) reported an underwritten public secondary offering of 12 million shares of its common stock by two members of the Laukien family not involved in the company's business. The selling stockholders also intend to grant the underwriters a 30-day option to purchase up to an additional 1.8 million shares of common stock to cover any over-allotments.
Bruker will not receive any of the proceeds from the sale of the shares of common stock by the selling stockholders in this offering. Goldman, Sachs & Co., J.P. Morgan Securities and Deutsche Bank Securities are acting as joint book-running managers of the proposed offering.
Bruker is a provider of high-performance scientific instruments and solutions for molecular and materials research, as well as for industrial and applied analysis.