A Medical Device Daily

Lumera (Bothell, Washington), a company involved in the field of photonic communications, reported entering into an equity financing facility (CEFF) with Kingsbridge Capital, a private investment group, providing up to $25 million of capital during the next three years by purchasinig newly issued shares of Lumera common stock. Lumera will determine the exact timing and amount of any CEFF financings.

Lumera operates in the bioscience industry through its subsidiary, Plexera Bioscience, which develops tools, content, and methods for proteomic discovery for therapeutic antibodies as well as predictive biomarkers.

“The new CEFF will be a less expensive, and therefore less dilutive, source of capital than that of more traditional capital market financings,” said Peter Biere, Lumera’s senior VP and CFO. “Lumera currently has enough cash to cover our needs at least into the second quarter of 2009.”

The company said it will access capital under the CEFF in tranches between 2% and 3% of its market capitalization at the time of the draw-down of such tranche.

Each tranche will be issued and priced over an eight-day pricing period. Kingsbridge will purchase shares of common stock at discounts ranging from 6% to 12%, depending on the average market price of the common stock during the eight-day pricing period, provided that the minimum acceptable purchase price for any shares to be issued to Kingsbridge during the eight-day period is determined by the higher of $1.25 or 90% of Lumera’s common stock closing price the day before the commencement of each draw-down.

In connection with the CEFF, Lumera issued a warrant to Kingsbridge to purchase up to 180,000 shares of common stock at $3.01 a share, representing a 125% premium over the average of the closing bid prices of Lumera common stock during the five trading days preceding signing of the agreement. The warrant will become exercisable after the six-month anniversary of the date of the agreement and will remain exercisable until five years after the date it becomes exercisable.

Lumera designs electro-optic components based on polymer compounds for the telecommunications and computing industries.