A Medical Device Daily
China Sky One Medical (Harbin, China), a manufacturer of diagnostic, pharmaceutical and medicinal products in China, said it has closed $25 million in a private placement of 2.5 million shares of its common stock, with 30% warrant coverage. The warrants have an exercise price of $12.50 a share and a term of three years.
China Sky One has agreed to file a registration statement covering the resale by the investors of the common stock issued in the placement.
In other financing activity:
• CompuMed (Los Angeles), a medical informatics company, reported an agreement with Boston Avenue Capital (BAC) providing for a new revolving line of credit up to $4 million. The company said that the funding will provide liquidity and working capital for growth initiatives and future expansion, including acquisitions.
“In the currently challenging credit environment, it is important that we have immediate access to funds at favorable terms and rates in order to help us execute on our growth strategy,” said Maurizio Vecchione, president/CEO. “We have identified expansion and consolidation opportunities within both our telecardiology and musculoskeletal businesses. The facility will provide us with the financial flexibility to pursue these opportunities and achieve our near-term growth initiatives.”
The line of credit matures on Dec. 31, 2017. Advances under the line of credit will bear interest at the three-month London Interbank Offered Rate, at about 3.25%, payable quarterly and will be unsecured senior obligations. The company issued BAC a common stock warrant for the purchase of up to 16 million shares of the company’s common stock.
The company’s board also elected Simon James as its new chairman and appointed Charles Gillman to the board. Gillman is the president of Value Fund Advisors, an investment advisor to BAC and to Yorktown Avenue Capital, a stockholder of CompuMed.
CompuMed develops products and services combining advanced imaging with medical informatics for analysis and remote monitoring of patients with cardiovascular and musculoskeletal diseases. Its core products, the OsteoGram and CardioGram, are FDA-cleared and reimbursable by Medicare.
• Certified Diabetic Services (CDS; Naples, Florida), a national direct-to-consumer mail-order distributor of diabetic supplies and pharmaceutical services, said it has closed a $4 million private placement.
CDS said the funds were used to acquire Diabetic Plus (Sunrise, Florida), a diabetic supply mail-order distributor and to provide working capital for growth.
The financing was structured as preferred shares, convertible into common shares, and the investor also received warrants in the deal. Midtown Partners acted as sole placement agent.
CDS says it serves more than 20,000 member patients with Medicare, Medicaid and private insurance who require monthly diabetic supplies and pharmaceutical services.
• Prospect Medical Holdings (Culver City, California), which manages the medical care of individuals enrolled in HMO plans in Southern California, said it has reached forbearance arrangements with all participating lenders in its $155 million senior secured credit facility.
The 60-day forbearance is intended to allow Prospect time to complete the Alta restatement exercise and finalize its Sept. 30 audited financial statements for delivery to the lenders, the company said. The forbearance period expires March 31 but could be extended until April 10 under certain circumstances, the company said.