A Medical Device Daily

Neoprobe (Dublin, Ohio) a developer of oncology and cardiovascular surgical and diagnostic products, reported that Platinum-Montaur Life Sciences (New York) agreed to exercise all 6 million of its Class Y warrants, which had an expiration date of December 5, 2013, to purchase common shares of Neoprobe.

The exercise of the warrants will occur in two tranches of $1.6 million, which has occurred, and $1.85 million, which will occur no later than September 30th, providing Neoprobe with a total of $3.45 million in gross proceeds. In addition, Neoprobe and Montaur agreed to amend the $7 million secured note issued to Montaur in December 2007 to grant Montaur conversion rights with respect to the $3.5 million portion of the note that was previously unconvertible.

The newly convertible $3.5 million portion will be convertible into 3.6 million shares of Neoprobe common stock. Montaur also agreed to remove the price-based anti-dilution adjustment provisions of the notes, preferred stock and warrants issued to Montaur that have created a significant non-cash derivative liability on the company's balance sheet. In conjunction with this transaction, Neoprobe issued Montaur a warrant to purchase 2.4 million shares of Neoprobe common stock at an exercise price of 97 cents per share.

In other financings news, Emdeon (Nashville, Tennessee) reported the launch of its initial public offering in the U.S. of 21,450,000 shares of its Class A common stock.

Of the shares being offered, 10,725,000 are being offered by the company and 10,725,000 are being offered by selling stockholders.

The IPO price is expected to be between $13.50 and $15.50 per share of Class A common stock. The shares have been approved for listing on the New York Stock Exchange under the ticker symbol EM. The underwriters have the option to purchase from the selling stockholders up to an additional 3,217,500 shares of Class A common stock, on the same terms and conditions, to cover any over-allotments.

The company said it intends to use nearly $5.3 million of the net proceeds from the offering received to repurchase ownership interests in its operating subsidiary held by certain members of management with the remainder used for general corporate purposes, which may include the repayment of indebtedness and future acquisitions. The company will not receive any of the proceeds from the offering of the Class A common stock by the selling stockholders.

Morgan Stanley, Goldman, Sachs & Co., UBS Investment Bank (all New York) and Barclays Capital (London) will act as book-running managers of the offering.