A Medical Device Daily
Novasys Medical (Newark, California), developer of the Renessa treatment for female stress urinary incontinence, reported that it has received $18.95 million in the second tranche of its previously disclosed Series D preferred stock financing. The company received the first tranche of the Series D round in May 2008, with lead investor Versant Ventures and new investors ThreeArch Partners and Skyline Ventures. All three participated in the second tranche, with existing investors Alloy Ventures, Delphi Ventures, GBS Venture Partners and Hercules Technology Growth Capital.
"This financing will speed the process of securing reimbursement for the Renessa treatment," said Debra Reisenthel, president/CEO of Novasys.
SUI is the involuntary leakage of urine associated with coughing, sneezing, laughing and recreational activities. It is caused by a variety of factors – most commonly childbirth – and often restricts the social, professional, and personal lives of an estimated 15 million women in the U.S. alone. With currently available surgical and non-surgical SUI therapies, many patients and physicians have concerns about safety, recovery, compliance and/or effectiveness.
The FDA-cleared Renessa System includes a small probe which a physician passes through the natural opening of the urethra (transurethral). The probe gently heats the tissue in the bladder neck and upper urethra. The heat denatures the collagen in the tissue, and upon healing, the tissue becomes firmer and more resistant to leaks. The Renessa treatment can be performed in the convenience of a physician's office, or in an outpatient setting, using local anesthesia. There are no incisions, bandages or dressings required.
In other financing news, Oxygen Biotherapeutics (Durham, North Carolina) reported that the company has closed its proposed acquisition of outstanding common stock purchase warrants.
The company acquired and cancelled 52.2 million common stock purchase warrants with an exercise price of $0.247 per share and an additional 18.7 million warrants with an exercise price of $0.245 per share, or a total of 70.9 million warrants. Prior to the transaction there were 121 million warrants outstanding, so the transaction reduces that number to 49.1 million common stock purchase warrants now outstanding. In exchange for the cancelled warrants the company issued to the holders 35.5 million shares of restricted common stock and paid to them $2.8 million in cash.
"The closing of the new financing by the Vatea Fund and the exchange of the warrants marks an enormous leap towards positioning our company for attracting and obtaining future financings that are necessary to support our product development," said Chris Stern, Oxygen Biotherapeutics, chairman/CEO. "We have significantly improved our working capital position which will enable us to advance the product development programs we have in place and consider a move to a major stock exchange."
The securities purchase agreement with Vatea Fund, assuming all milestones are achieved in a timely manner, provides for Vatea Fund to purchase an additional 60 million shares of the company's stock for a total purchase of 80 million shares for $20 million in cash.
Oxygen Biotherapeutics is developing pharmaceuticals and medical devices in the field of oxygen therapeutics and defense medicine. The company has under development a perfluorocarbon (PFC) therapeutic oxygen carrier and liquid ventilation product (Oxycyte) and has out-licensed an implantable glucose sensor. These products are based upon core technologies that include biomedical applications for PFCs as well as medical and industrial applications for biosensors.