A Medical Device Daily

Derma Sciences (Princeton, New Jersey), a provider of advanced wound care products, said that it has closed on its previously reported $6.1 million private placement with Lehman Brothers, as well as new and existing investors (Medical Device Daily, Apr. 2, 2008).

The net proceeds will be used to accelerate the expansion of the Derma Sciences sales force and to potentially broaden the scope of its licensing agreement with Comvita New Zealand, its commercialization partner for Medihoney.

Oppenheimer & Co. acted as advisor and placement agent.

Derma Sciences received $6.1 million in gross proceeds from the sale of 6.1 million shares of its common stock and about 3.1 million warrants with an exercise price of $1.20.

Aside from the sales force expansion and potentially a broadened license agreement relating to Medihoney, net proceeds from the transaction also will be used for working capital as well as for general corporate purposes. Pending such uses, the proceeds are expected to temporarily pay down the company's existing revolving credit facility.

Somanetics (Troy, Michigan) reported that its board has authorized the company to repurchase up to $15 million of its common shares.

Purchases may be made from time to time in the open market or in privately negotiated transactions. The prices, timing and amount of, and purposes for, any purchases will be determined by the company's executive officers. The company expects to fund its repurchase program with existing cash and cash equivalents on hand.

The company had 13,634,186 common shares outstanding as of April 2.

Somanetics develops the Invos Cerebral/Somatic Oximeter System, a non-invasive patient monitoring system that is designed to continuously measure changes in the blood oxygen levels in the brain and elsewhere in the body, in somatic, or skeletal muscle, tissue in patients with or at risk for restricted blood flow.