A Medical Device Daily
Flexible Medical Systems (FMS; Rockville Maryland) reported completing a private placement of $1.2 million of common equity to accredited investors.
The company said it will use the proceeds to conduct human proof-of-concept trials, to pursue additional intellectual property filings and for general working capital. “The proceeds from this investment will provide us with funding to pursue our business plan. We intend to demonstrate our proven animal study results in humans which will allow us to go to the next level,” said Richard Smith, company president.
FMS also said that Paul Brown, MD, has been elected to the company’s board. Brown is the founder and chairman of HearUSA, which operates more than 170 hearing care centers. “Paul’s extensive experience as a doctor, entrepreneur and business leader within the challenging life science service business makes him an ideal member of FMS’s board,” said John Currie, PhD, founder and chief science officer of FMS.
FMS develops bio-monitoring products and technologies that it says are designed for health and fitness needs.
TomoTherapy (Madison, Wisconsin) a company developing radiation treatments for cancer, reported filing a registration statement for a proposed secondary offering of 8.5 million shares of its common stock solely by certain selling shareholders.
The shareholders also will grant the underwriters an option to acquire another 1,275,000 shares to cover over-allotments. The company won’t receive any proceeds from the sale of the shares but will pay the expenses of the offering, excluding underwriting discounts.
Merrill Lynch & Co. is acting as book-running manager, and Piper Jaffray & Co., Thomas Weisel Partners, Robert W. Baird & Co. and William Blair & Company, are directors.
In other financing news:
• American Shared Hospital Services (ASH: San Francisco) a provider of technology solutions for advanced radiosurgical and radiation therapy, reported that it is suspending any cash dividend.
“While our cash flow is solid and our cash position remains substantial, this step will increase the financial resources we can put to work to take full advantage of the many attractive investment opportunities in PBRT that have become available to us,” said Ernest Bates, MD, CEO and chairman of ASH. “We believe this strategy is the best way to deliver growth and value to our shareholders for the long term.”
The company’s offerings include Gamma Knife radiosurgery services, a non-invasive treatment for malignant and benign brain tumors, vascular malformations and facial pain. The company also offers IGRT and IMRT systems, as well as its Operating Room for the 21st Century concept.
• Elbit Medical Imaging (EMI; Tel Aviv, Israel) reported that following the publication of an offering prospectus, it has completed a classified investors bidding in connection with public offerings of units consisting of new Series E Notes and units consisting of new Series F Notes, through two separate and independent tenders on the annual interest rates to be borne by each of Series E Notes and Series F Notes.
EMI offered 350,000 units of Series E Notes and Series F Notes, each consisting of NIS 1,000 par value, for a principal amount of NIS 350 million. The maximum annual interest rate offered for the Series E Notes was 6.5%, and the maximum annual interest rate offered for the Series F Notes was 5.9%.
During the classified bidding, EMI received early commitment offers for the purchase of 157,920 units of Series E Notes for a total consideration of about NIS 157.9 million (around $38.7 million) and early commitment offers for the purchase of 448,164 units of Series F Notes for about NIS 448.2 million (around $109.9 million).