A Diagnostics & Imaging Week

NeoMatrix (Irvine, California) reported that it has completed its C2 funding round totaling $15 million.

That figure is, due to overwhelming investor demand, 50% more than the company's initial target of $10 million in new funding, NeoMatrix said.

In addition, NeoMatrix reported a current oversubscription of the C2 round totaling $1.2 million. In order to accommodate those investors who are part of this $1.2 million oversubscription — as well as those investors who indicated interest but were unable to participate — the company is initiating a small C3 round that will total $2 million to $3 million, under the exact terms and conditions as the C2 round.

The funding will be used to support further commercialization of the company's technology for its Halo Breast Pap Test.

"The success of our efforts is notable in what is obviously a very difficult financial climate," said John Stroh, NeoMatrix's CEO. "Clearly, our investors have recognized the exceptional investment opportunity of NeoMatrix and its Halo technology. Oversubscribing our offering confirms that opportunity and the strength of our Halo technology. "

"Our story resonates with investors on several levels," Stroh added. "The potential to save lives through our Halo Breast Pap Test is obviously compelling. Beyond that, investing in NeoMatrix provides investors the opportunity to diversify their portfolio with an asset that is less volatile and non-correlative to the public financial markets."

He noted that investors understand NeoMatrix has significantly reduced typical risks, in that the company has: cleared FDA regulatory hurdles; built strong intellectual property protecting its technology; completed product development; and placed a substantial number of units at healthcare facilities around the U.S. during the product's launch phase.

Halo is a 5-minute, noninvasive test that helps physicians and their patients determine an individual woman's risk of getting breast cancer.

The test is performed with a proprietary device for collecting nipple aspirate fluid (NAF). The device delivers a combination of warmth, massage, and suction – much like a breast pump — to collect NAF. The fluid is then examined to identify women with abnormal cells (or atypia) in their NAF, who are at high risk of developing breast cancer. These women can then be guided toward lifestyle changes, increased monitoring, or medical interventions aimed at preventing the disease, or detecting it at its earliest, most treatable stage, NeoMatrix said.

The company noted that women with atypia have a four-to-five times greater risk of developing breast cancer, making NAF a valuable biomarker. Well-tolerated by patients and easy to use, the device is the first means of collecting NAF to be practical for general care, according to NeoMatrix.

In other financing news, Mindray Medical International (Shenzhen, China/Mahway, New Jersey), reported that its board has authorized an option exchange program for certain options granted under the Mindray Share Incentive Plan. The exchange, available only to eligible employees, is expected to provide additional incentive and retention value, the company said.

Participants will be able to tender vested and unvested outstanding options to purchase Class A ordinary shares of Mindray, having a price greater than $24 per share in exchange for a lower number of newly granted options. The exercise price of the new options will be the closing price of Mindray stock on the New York Stock Exchange on the exchange date.

Mindray expects the offer to expire March 15 and to grant the replacement options on March 16. The option exchange program is designed so that the current fair value of the options surrendered is similar to the fair value of the replacement options, "and any additional expenses due to the exchange offer should be minimal," Mindray said.

Mindray offers products across three segments: patient monitoring and life support products; in vitro diagnostic products; and medical imaging systems.

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