A Medical Device Daily

Medicalis (Kitchener, Ontario) reported raising $7 million in a Series B financing led by HLM Venture Partners.

Medicalis is an expansion-stage healthcare information company providing next-generation, clinical decision support software and integration technologies focused on improving the quality and efficiency of diagnostic imaging in healthcare.

"We believe Medicalis ... is well positioned to capitalize on the growing market opportunity presented by the increasing reliance by doctors and hospitals on diagnostic imaging," said Peter Grua, the HLM partner directing the transaction.

He added, "The company's products enhance patient care through appropriate test ordering and results review, and also help to deliver clinical evidence based guidelines and up-to-date patient medical information to community and hospital-based physicians at the point of care."

"With access to this additional growth capital from HLM, we plan to enhance our sales and marketing efforts and believe we can greatly expand the use of our products and services," said Ron Kelly, president/CEO of Medicalis.

As a condition of the financing, Grua is joining the Medicalis board.

Medicalis was advised by the investment bank B.C. Ziegler & Co.

XTend Medical (Sun Valley, California), a provider of telemedicine solutions to the healthcare industry, has secured up to $1 million in financing for the upcoming implementation of its remote diabetic monitoring programs with several U.S. and European health organizations.

CEO Paul Lisenby said the funding "allows us to focus 100% on ensuring that the pending closure of several contracts over the next 30 days will be done with less financial strain on the company and allows us to purchase our products on favorable pricing thereby increasing our profit margins for the company."

Through its alliances, XTend offers pharmacy services, diabetic supplies and telemedicine products that are designed to increase patient care yet reduce costs associated with servicing those patients.

In other financing news, American Bio Medica (ABM; Kinderhook, New York) reported that it has successfully completed its previously disclosed private placement of Series A debentures. ABM has accepted subscriptions representing a principal amount of $750,000 in Series A debentures (before deducting fees and expenses related to the placement).

The debentures will accrue interest at an annual rate of 10% and mature on Aug. 1, 2012. The payment of principal and interest on the debentures is subordinate and junior in right of payment to all senior obligations of ABM. Holders of the debentures have a right of conversion of the principal amount of the debentures into shares of the common stock of the company at a conversion rate of about 75 cents per share, which a premium of 80% over ABMC's closing stock price of 40 cents on Aug. 1 .

The company said that the net proceeds received under this offering will be used for working capital.

ABM is a developer of immunoassay diagnostic test kits.

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