A Medical Device Daily
Paradigm Medical Industries (Salt Lake City), maker of glaucoma diagnostic and management devices, reported that it has completed the funding of $1 million through a group of institutional investors, headed by NIR Group (New York).
The company said that a significant portion of the proceeds will be used to fund the introduction, marketing and distribution of new ophthalmic instruments and systems the company plans to launch during the first half of 2008.
“We will also use proceeds to grow our domestic sales force, to increase direct and distributor sales force training, and to increase inventories,” said Paradigm’s CEO, Raymond Cannefax. “Marketing our redesigned LD 400 Visual Fields and Blood Flow Analyzer (BFA) products and introducing new devices and systems into the ophthalmic market is one of our primary areas of focus in 2008.”
Cannefax noted the company already is filling a significant order for LD 400s for one of the largest optical chains in the UK, and has written commitments for additional LD 400 Perimeters from the same chain. “We had a threefold increase in our sales organization in late 2007 and will have a presence in additional metropolitan areas. The new funding will allow us to introduce new and updated diagnostic products and have a trained and highly competent sales force to market and distribute them in 2008,” Cannefax said.
The funding involves the purchase of $1 million in secured convertible notes by the investing group. The notes are to be purchased in traunches, with the first traunche of $250,000 and then monthly traunches of $100,000 each until a total of $1million in notes have been purchased. Paradigm received the first $250,000 upon the signing of definitive agreements on Dec. 24. The company also is required to issue warrants to the noteholders to purchase a total of 15 million shares of common stock at an exercise price of $0.001 per share.
Under the terms of the notes, the unpaid principal balance on the notes, together with accrued interest at 8% per annum, is due in three years from the date of issuance. The notes are also convertible by the noteholders at any time into shares of common stock.