A Medical Device Daily
Medical Properties Trust (Birmingham, Alabama) reported that it has priced an underwritten public offering of 12 million shares of its common stock at $5.40 per share. The company has granted the underwriters an option to purchase up to an additional 1.8 million shares within a 30-day period, to cover over allotments, if any.
The company estimates that the net proceeds from this offering, after underwriting discount and commissions and estimated offering expenses, will be nearly $60.1 million or $69.3 million if the underwriters' over-allotment option is exercised in full.
J.P. Morgan Securities (New York) and UBS Investment Bank (Zurich, Switzerland) are joint bookrunners for the offering, with Deutsche Bank Securities (Frankfurt, Germany), KeyBanc Capital Markets, RBC Capital Markets (New York), Keefe, Bruyette & Woods, (New York), and Stifel Nicolaus (St. Louis, Missouri) as co-managers.
The net proceeds of this offering will be used to repay borrowings outstanding under the company's revolving credit facilities.
The offering is expected to close on Wednesday, subject to customary closing conditions. All of the shares of common stock will be issued by the company and will be issued under the company's currently effective shelf registration statement filed with the Securities and Exchange Commission.
In other financings:
• ProUroCare Medical (Golden Valley, Minnesota) reported the public offering of 3,050,000 units at $1.00 per unit, each unit consisting of one share of common stock and one redeemable warrant to purchase one share of common stock at an exercise price of $1.30 per share. The company has granted the underwriter of the offering a 45-day option to purchase up to an additional 457,500 units to cover over-allotments, if any. The offering was expected to close on Monday.
The offering is being underwritten on a firm commitment basis by Feltl and Co.
Net proceeds of this offering will be used to fund certain operating expenses and development costs as the company pursues FDA 510(k) clearance of its ProUroScan prostate imaging system and to retire certain short-term liabilities.
A registration statement relating to these securities has been declared effective by the SEC.
ProUroCare Medical is a development-stage company engaged in the business of developing for market innovative products for the detection and characterization of male urological prostate disease.
• InSet Technologies (Mount Olive, New Jersey), a company involved in the development of programmable implantable pumps for targeted delivery of medication, reported the closing of equity financing totaling $25 million.
Clarus Ventures (Cambridge, Massachusetts), a life sciences venture capital firm, led the round and was joined with a follow-on investment by FatBoy Capital. In conjunction with the financing, Kurt Wheeler of Clarus Ventures will join the InSet board of directors.
"Completion of our financing in this difficult economic environment is a strong testament to the value of our technology, the progress of our company, and the insight of Clarus Ventures and our other investors. With this funding, we look forward to continuing our progress to provide new therapeutic options to both physicians and patients," said Steve Adler, president/CEO of Inset Technologies. "We are excited to have Kurt Wheeler join our board of directors. Kurt brings 25 years of experience successfully commercializing medical device companies to InSet Technologies' board."
• Singulex (Alameda, California) said it has closed a $19 million financing round, led by JAFCO and supported by existing investors including OrbiMed Advisors and Fisk Ventures. The financing round will support the commercialization of Singulex technologies in the diagnostics market.
As part of the financing, Hironori Hozoji, investment officer for JAFCO Life Science Investment, will join the company's board of directors.
Singulex has closed partnerships with multiple large pharmaceutical companies to use Erenna technology and immunoassays to help them better understand the effects of their compounds early in preclinical studies and clinical trials. With its ability to detect and measure minute protein biomarker changes at very low levels, Singulex's technology also has significant potential for clinical applications in personalized medicine across multiple diseases.
Singulex will use the funds from this financing to deploy its product and services in the emerging molecular clinical diagnostic market. Initially, the company will focus on cardiovascular disease risk diagnostics using its assay platform for the biomarker c Troponin I (cTnI), a well-validated marker for cardiac necrosis.
• Arbios Systems (Pasadena, California) reported that it has filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. A Chapter 11 filing enables the company to continue to seek bids for the sale of the Company and/or its assets while working with its creditors.
Arbios previously announced in August that it had suspended operations except for its efforts to raise capital to support the development of its SEPET technology or enter into a strategic transaction. Its board of directors has now determined that, in light of the company's limited cash position and current economic conditions, the best course of action is to sell the company and/or its assets through a bid solicitation plan under bankruptcy protection.
The company's principal assets include its SEPET technology, a hemofiltration device designed to support patients suffering from cirrhosis due to chronic liver disease and who are hospitalized with acute complications resulting from worsening liver dysfunction and portal hypertension. The company has successfully completed a Phase I/II clinical trial in which 11 out of 14 (79%) enrolled patients achieved the primary endpoint of reduction in hepatic encephalopathy, obtained FDA permission to commence a Phase III pivotal trial, received IRB approval to commence the trial from a hospital in Germany and commenced obtaining the European CE mark.