A Medical Device Daily
Response Genetics (Los Angeles), a company focused on the development of molecular diagnostic tests for cancer, reported raising $4 million from a private placement of newly issued shares of its common stock.
The company said that on July 22 it entered into an agree with funds managed by Lansdowne Partners Limited Partnership whereby roughly $4 million was raised from a private placement of newly issued shares of its common stock. Response Genetics said it expects to use the funds to facilitate its sales goals and to expand its ResponseDX product offerings.
In other financing activity:
• Flex Biomedical (Boston) said it would relocate to Madison with the aid of more than $800,000 in venture capital and a $150,000 loan from the Wisconsin Department of Commerce Technology Venture Fund.
Flex, founded in October 2007, develops products for the treatment of musculoskeletal injuries and diseases. Its lead product is a polymer-based treatment for osteoarthritis.
The company said it has raised $985,000, including the $150,000 loan from Wisconsin. The Wisconsin Investment Partners of Madison, NEW Capital Fund of Appleton, and the Marquette Golden Angels of Milwaukee led the financing round. Flex said it is still raising capital in this round.
"This investment by three of Wisconsin's leading early stage investment groups and the state in this difficult financial climate speaks volumes about our technologies, market opportunity, and company," said Sal Braico, CEO of Flex Biomedical. "Wisconsin is fast becoming a player in the biotech and medical device sectors. We look forward to growing our operations here."
The company will use the Wisconsin loan for research, development and the purchase of equipment. The total project cost is $2.75 million.
"Flex Biomedical is exactly the type of company our state should be investing in – companies that are developing innovative products that will create jobs for hard-working Wisconsin families," Doyle said.
The Technology Venture Fund provides low-interest loans to Wisconsin high-technology companies to facilitate the search for angel or other seed capital investment.
• American Medical Systems (AMS; Minnetonka, Minnesota) said it has commenced an exchange offer for its outstanding 3.25% convertible senior subordinated notes due 2036.
The company is offering to exchange $1,000 principal amount of its new 3.75% convertible senior subordinate notes due 2041 for each $1,000 principal amount of its 2036 notes, provided that the maximum aggregate principal amount of the 2036 notes that the company will exchange is $250 million. The company said it will also pay in cash, accrued and unpaid interest on 2036 notes accepted for exchange from the last applicable interest payment date to, but excluding the date on which the exchange of 2036 notes accepted for exchange is settled.
The 2041 notes will be convertible into cash, and in certain circumstances, shares of the company's common stock initially at the same conversion rate and conversion price as the 2036 notes, which will be subject to adjustment under certain circumstances. Holders of 2041 notes will have the right to require the company to repurchase their 2041 notes at par on Sept. 15, 2016, which is more than three years after July 1, 2013, the first date on which holders of 2036 notes can require the company to repurchase their 2036 notes at par.
The exchange offer is conditioned on at least $100 million aggregate principal amount of the 2036 notes being validly tendered and not validly withdrawn; the last reported sale price of the company's common stock on The Nasdaq Global Select Market not exceeding $17.64 a share on the expiration date; and the satisfaction of certain other customary conditions.
The exchange offer will expire at midnight, EST, on Sept. 11, unless extended or earlier terminated by the company. Holders may withdraw their tendered 2036 notes at any time prior to the expiration date.
The sole lead dealer manager for the exchange offer is J.P. Morgan Securities. The co-dealer manager is Goldman, Sachs & Co.
AMS supplies devices and procedures to cure incontinence, erectile dysfunction, benign prostate hyperplasia, prolapse and other pelvic disorders in men and women.