A Medical Device Daily

MedeFile International (Cedar Knolls, New Jersey), a company specializing in portable electronic medical records management solutions, reported that it has received total net proceeds of $1.95 million from three separate private placement transactions.

Specifically, transactions closed on Nov. 16, 2007, and Jan 22, yielded $1.79 million in gross cash proceeds from the private placement of 11.9 million restricted shares of common stock and warrants to purchase an aggregate of 7.2 million restricted shares of common stock.

On Jan. 28, the company received an additional $160,000 in gross proceeds from the private placement of 1.1 million restricted shares of common stock and warrants to purchase an aggregate of 640,000 restricted shares of common stock.

In addition, MedeFile reported that its largest stockholder and primary creditor has converted $2.1 million in debt into 14 million restricted shares of MedeFile’s common stock, thereby reducing the company’s indebtedness to the stockholder from about $3.04 million to about $940,000. In connection with the conversion, the stockholder also received warrants to purchase an aggregate of 8.4 million restricted shares of the company’s common stock.

Milton Hauser, CEO/chairman of MedeFile, said, “Collectively, these debt conversion and equity transactions have served to materially strengthen our balance sheet, while providing us with additional working capital to help fund our strategic organic growth. This financing and debt conversion will enable management to further its current sales and marketing initiatives aimed at increasing the number of subscribers to the MedeFile system.”

MedeFile has developed a system for gathering and digitizing medical records so that individuals can have access to a comprehensive set of their medical records. The MedeFile system is designed to gather all of its members’ actual medical records and create a single resource that is accessible 24 hours a day, seven days a week.

Healionics (Redmond, Washington), a provider of tissue regeneration and device biointegration solutions to healthcare manufacturers, said it has raised $1.7 million in a Series A financing. The financing was led by individual investors including Carl Lombardi, former CEO of SpaceLabs Medical (Issaquah, Washington) and Sam Naficy, MD, Medical Director of Naficy Plastic Surgery & Rejuvenation Center (Bellevue, Washington).

“We are pleased to secure this financing, which provides recognition of our technology platform and allows Healionics to continue expanding the potential of STAR materials to enhance current and next generation medical devices,” said Rob Brown, CEO of Healionics. “These funds will be used specifically to scale up the STAR material manufacturing process, to expand and accelerate preclinical studies of STAR materials and to advance our business development activities.”

Healionics’ STAR Material — Sphere Templated Angiogenic Regenerative Material — is specifically engineered to enhance biointegration and promote healing. Described as the ‘Gore-Tex of biomaterials,’ STAR is designed to enable the biocompatibility of a wide range of medical devices that are implanted into the body.

Healionics was formed in March 2007. To date, the company has entered into multiple agreements for the advancement of its STAR material into various market applications including diabetes, wound care and infusion therapy.

In other financing news: Ventas (Louisville, Kentucky) reported that it has agreed to sell 3.9 million shares of its common stock to UBS Investment Bank, as sole underwriter, in an underwritten public offering.

The company has also granted UBS Investment Bank a 30-day option to purchase up to an additional 585,000 shares of common stock to cover any overallotments.

Gross proceeds from the offering (before deducting the underwriting discount and expenses) are expected to be about $168.6 million (or $193.9 million if the underwriter’s overallotment option is exercised in full). The company said it will use the net proceeds to repay indebtedness outstanding under its revolving credit facility and for other general corporate purposes, including acquisitions.

The shares of common stock are being offered under the company’s existing shelf registration statement, which became automatically effective upon filing with the Securities and Exchange Commission.

Ventas is a healthcare real estate investment trust. Its portfolio of properties located in 43 states and two Canadian provinces includes seniors housing communities, skilled nursing facilities, hospitals and medical office and other properties.