A Diagnostics & Imaging Week
DexCom (San Diego) reported that it has closed its previously disclosed public offering of 15,844,000 shares of its common stock at a price of $3 per share.
Terrance Gregg, DexCom's president/CEO, also purchased 150,000 additional shares of common stock in this offering at a price per share of $3.12, which represents the last reported bid price on the Nasdaq Global Market of DexCom's common stock on Jan. 29.
The gross proceeds to DexCom, before expenses, from the sale of the shares were $48 million. Piper Jaffray & Co. was sole manager for the offering.
DexCom is focused on the development of continuous glucose monitoring systems for use by patients at home and by healthcare providers in the hospital.
SpectraScience (San Diego) has entered into a $6 million common stock purchase agreement with Fusion Capital Fund II (Chicago), an institutional investor.
Under the agreement, the company may sell up to $6 million of its common stock to Fusion Capital from time to time over a 24-month period after the SEC has declared effective a registration statement related to the transaction. The company said the proceeds to be received under the common stock purchase agreement will be used for working capital and general corporate purposes.
The company has the right to sell shares of its common stock to Fusion Capital from time to time in amounts between $25,000 and $1 million, depending on certain conditions, up to $6 million in the aggregate. The purchase price of the shares will be based on the prevailing market prices of the company's shares at the time of sales without any fixed discount, and the company will control the timing and amount of any sales of shares to Fusion Capital.
SpectraScience develops spectrophotometry systems capable of determining whether tissue is normal, pre-cancerous or cancerous without physically removing tissue from the body.
In other financing news:
• Tenet Healthcare (Dallas), in connection with its previously disclosed exchange offer relating to its outstanding notes maturing on Dec. 1, 2011, and June 1, 2012, reported that it has extended both the early participation date and the deadline for the withdrawal of tendered notes to 5 p.m. EST on Feb. 18. The expiration date of the exchange offer is unchanged and remains 5 p.m. EST on Feb. 26, unless extended or earlier terminated.
Tenet had previously announced that the outstanding notes would be exchanged for an equal aggregate principal amount of two new series of senior secured notes maturing in 2014 and 2019; the maturity dates of the new notes have been extended and reduced, respectively, to 2015 and 2018.
Tenet owns and operates acute-care hospitals and related ancillary healthcare businesses, which include ambulatory surgery centers and diagnostic imaging centers.
• Xenomics (Monmouth Junction, New Jersey), a developer of non-invasive next-generation molecular diagnostics, reported the restructuring of its 6% convertible debentures issued in November 2006.
As previously discussed in company filings with the SEC, the company has been seeking to restructure the debt owed to holders of the debentures, amounting to $2,170,500 in principal originally due in November 2008, plus interest and penalties, following various events of default and covenant breaches.
Effective Jan. 30, the company entered into a forbearance agreement with its debenture holders which provides for a waiver of existing defaults and an extension of the debenture's maturity date to Dec. 31, 2010. The company agreed to pay all accrued interest and potential default penalties and late fees in shares of common stock of the company, aggregating 5,337,474 shares, and to increase the interest rate on the debentures from 6% to 11%, which will also be payable in common stock. In addition, the company agreed to add to its board two new qualified members to be proposed by certain holders of a majority of the debentures.
The company said it looks forward to proceeding with development of its molecular diagnostic technology and working toward becoming current with its SEC filings. Despite a very challenging economic environment, the company said it strongly believes that there is a need for its products and that the molecular diagnostic sector will continue to grow rapidly.
The company said its technology has a broad range of detection and monitoring applications.