A Medical Device Daily
MDG Medical (Cleveland, Ohio), a provider of automated medication dispensing systems, reported the addition of $14 million in equity and debt. Leading the investment was Life Sciences Capital (New York), along with RSL Investments.
MDG said the funds will support sales and marketing in “growing segments” in the U.S., Europe and the Middle East.
CEO Mark Saffran said that MDG “is focused on growing market awareness and preference of our proprietary medication management solutions. We have ... established ourselves as a significant player in the health industry.”
MDG says its target market is smaller, rural healthcare facilities, with more than 180 systems sold in the U.S. and Europe.
The company’s computerized dispensing systems manage medication delivery from the point of prescription to administration, to enhance patient safety.
Michael Siegal, chairman, said, “as an early investor in MDG, we were intrigued by the prospect of taking the best of Israeli development and pairing it with professional management in the Cleveland area in order to create a first-rate company and provide employment opportunities for Israel and the Cleveland region.”
With an R&D subsidiary based in Tel Aviv, MDG’s flagship product is ServeRx, and it provides other medication management products and services to hospitals in the U.S., Europe and the Middle East.
EP MedSystems (West Berlin, New Jersey) has closed on a $3 million loan with Keltic Financial Partners, consisting of a $1.5 million asset-based revolving credit agreement and a $1.5 million loan, each with a three-year term. The company issued warrants to Keltic to purchase 25,000 shares of company common stock at $2.50 a share.
EP MedSystems said it used the proceeds to pay off its $2 million convertible debt. At Dec. 31, the company had around $5.6 million of cash on hand compared to $5.6 million at Sept. 30, 2007, and $7.7 million at the end of 2006.
EP MedSystems manufactures products used in the electrophysiology (EP) market for visualization, diagnosis and treatment of cardiac rhythm disorders. Its product line includes the EP-WorkMate computerized EP workstation, the NurseMate Remote Review Charting Station and the EP-4 Computerized Cardiac Stimulator.
In other financing activity:
• Cytori Therapeutics (San Diego) reported closing the first half of its $12 million equity agreement with Green Hospital Supply (Tokyo), entered into earlier this month (Medical Device Daily, Feb. 11, 2008). Green Hospital Supply committed to purchase 2 million shares of unregistered common stock at $6 a share and will be granted a non-voting observer seat on Cytori’s board.
Cytori has received the first $6 million payment in exchange for issuing the first 1.0 million shares of unregistered Cytori common stock. On or before April 30, Cytori will receive a second $6 million payment and issue Green Hospital Supply another 1 million shares of unregistered Cytori common stock.
Cytori’s Celutio 800 System is being introduced in Europe into the reconstructive surgery market while the Celution 900 System will be launched in Japan for cryopreserving a patient’s own stem and regenerative cells.
• California Stem Cell (CSC; Irvine, California) has secured series A financing from private investors, the amount undisclosed. CSC said the proceeds will be used to expand its laboratory and manufacturing facilities for mass production of FDA-compliant cells and pre-clinical development of treatments for cardiac and central nervous system disorders.
Chris Airriess, company COO, said the funds will support expansion of GMP manufacturing capabilities “and proceed toward the development of our lead therapeutic candidates.”
CSC is in the pre-clinical development stage of stem cell-based therapies for spinal muscular atrophy, amyotrophic lateral sclerosis, spinal cord injury and coronary heart disease. Hans Keirstead, chairman of the CSC scientific advisory board. “Our initial research shows that transplanted motor neurons can survive and integrate into the central nervous system.”
Keirstead will discuss the use of high-purity human cell populations in research and therapy at the Stem Cell Partnering Series conference in La Jolla, California, on Friday.