A Medical Device Daily
Active Implants (Memphis, Tennessee), a developer of advanced polymer technology for the hip and knee segments of the orthopedic market, said it has raised $10 million in its Series C preferred stock offering and has appointed Charles Martin to its board of directors.
"This new financing enhances our ability to move forward toward achieving our development, clinical, regulatory, and early commercialization milestones," said President/CEO Michael Mainelli.
Martin is the recent past CEO/chairman and a current director of Zephyr Associates, a financial services software development firm. He was the past CEO/chairman of Third Party Solutions and DirectComp Rx, both national healthcare service companies.
In other financing activity:
• Quest Diagnostics (Madison, New Jersey) reported that the following principal amounts of its 5.125% senior notes due 2010 and 7.50% senior notes due 2011 have been validly tendered and not validly withdrawn in connection with its previously disclosed cash tender offer to purchase up to $200 million total aggregate principal amount of the notes.
Because the aggregate principal amount of the 5.125% senior notes due 2010 validly tendered and not validly withdrawn as of the early tender date does not exceed the tender cap, the amount of each series of notes that may be purchased in the tender offer will be determined in accordance with the tender cap and the acceptance priority levels based on the principal amount of the notes tendered midnight, Eastern Time on June 16, unless extended. The notes may be subject to proration, in each case as described in the offer to purchase and related letter of transmittal.
Quest has retained Banc of America Securities to act as lead dealer manager and Calyon Securities and Mitsubishi UFJ Securities to serve as co-dealer managers. Global Bondholder Services has been retained to serve as the depositary and the information agent for the tender offer.
• Endoscopic Technologies (San Ramon, California), a provider of cardiac surgery devices, said it has completed $8 million in equity financing through the sale of its preferred stock. This is in addition to the $11.3 million the company raised in September 2008. NBGI Ventures led the financing. Also participating in the financing were previous investors Saints Capital Everest, Telegraph Hill Partners and Waveland Venture Partners.
• Orasi Medical (Edina, Minnesota) said it has completed a $3.5 million Series B financing round. The company said it would use this capital to expand the development and use of its diagnostic test into the pharmaceutical and clinical markets.
According to Orasi, pharmaceutical companies will use this test to determine the efficacy of compounds intended to treat various neurological diseases. The company said it is currently in discussions with several pharmaceutical companies to finalize the structure of these clinical trials and the inclusion of the Orasi test.
Orasi is an early-stage device company engaged in the development and commercialization of technology to diagnose and monitor neurological disorders using electrical brain activity.
• Catheter Connections (Park City, Utah) reported that it has raised $1.3 million in seed capital, led by Kickstart Seed Fund. The funding enables the company to further develop and commercialize its lead product, a device designed to prevent hospital-acquired infections resulting from catheters.
• Tenet Healthcare (Dallas) reported the pricing of its previously disclosed private offering of senior secured notes maturing in 2019. A total of $925 million aggregate principal amount of notes, which will bear interest at a rate of 8.875% per annum, will be issued. The notes will rank pari passu with Tenet's 9% senior secured notes due 2015 and 10% senior secured notes due 2018, which were issued in March, and similarly will be guaranteed by and secured by a pledge of the capital stock and other ownership interests of certain of Tenet's subsidiaries.
The proceeds from the offering will be used to purchase Tenet's 9.875% senior notes due 2014 in a tender offer. The 8.875% senior secured notes have not been registered under the Securities Act of 1933 or any state securities laws. Accordingly, the notes are being offered only to qualified institutional buyers outside the U.S.