A Medical Device Daily

InSight Health Services (Lake Forest, California) reported an exchange offer for $12.5 million of registered senior secured floating rate notes due 2011.

The company said it would accept for exchange any and all outstanding notes, which are properly tendered in the exchange offer by midnight, EST, on Jan. 25.

InSight provides diagnostic imaging services. It serves managed care entities, hospitals and other contractual customers in more than 30 states in the U.S.

In other financing activity, AlphaRx (Markham, Ontario) said that in order to meet TSX Venture Exchange listing requirements, its CEO, CFO, directors, consultants and employees plan to exercise stock options to buy 3.3 million shares of the company’s common stock.

Michael Lee, president/CEO, will cancel 6 million options granted to him in 2004, which carried a strike price of 15 cents a share and will exercise 1,862,228 warrants with a strike price of 10 cents a share. Also, certain employees will voluntarily cancel 1,710,000 of their options at the same time to make the capital structure of the company more attractive for institutional investors, the company said. As of press time on Friday, AlphaRx expected the transactions to be complete by today.

Lee also will buy 6 million company shares at 15 cents a share under a private placement, AlphaRx said. The company expects to close this private placement on or before Jan. 31.

AlphaRx is a specialty pharmaceutical company using site-specific nanoparticulate drug delivery systems to develop novel formulations of drugs that are insoluble or poorly soluble in water or have yet to be administrable to the human body with an acceptable delivery method. The company also discovers and develops small-molecule drugs for the treatment of inflammatory diseases and neurodegenerative diseases.

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