A Medical Device Daily
Monitoring product maker Masimo (Irvine, California) has closed its previously disclosed initial public offering of 11.9 million shares at $17 a share.
The company also said that the underwriters of the offering have exercised their over-allotment option and bought 1,787,494 additional shares of common stock.
Including the over-allotment, the company and selling stockholders sold 13,704,120 shares in the offering for gross proceeds of $232.9 million. Excluding shares offered by selling shareholders, net proceeds to the company amounted to about $48 million.
The company reported pricing its IPO last week (Medical Device Daily , Aug. 9, 2007), saying that it expected to raise about $48.5 million if the underwriters exercised the over-allotment option in full. Masimo filed for its IPO in April (MDD, April 20, 2007).
Masimo plans to use the proceeds for sales and marketing activities, capital expenditures, research and development, including clinical studies, and for general corporate purposes. The company may also use a portion of the proceeds for the acquisition of or investment in companies, technologies or products that complement the business.
The company invented Masimo Signal Extraction Technology, or Masimo SET, which provides the capabilities of read-through motion and low perfusion pulse oximetry to address the primary limitations of conventional pulse oximetry. Pulse oximetry is the non-invasive measurement of the oxygen saturation level of arterial blood, or the blood that delivers oxygen to the body’s tissues, and pulse rate.
Piper Jaffray, Deutsche Bank Securities and Citigroup Global Markets acted as joint book running managers for the offering. Cowen and Company and Thomas Weisel Partners acted as co-managers of the offering.
Masimo develops monitoring technologies intended to improve patient care.
Palomar Medical Technologies (Burlington, Massachusetts), developer of light-based systems for cosmetic treatments, said its board of directors has approved a stock repurchase program to repurchase up to one million shares of its common stock.
Stock repurchases under this program, if any, will be made using the company’s cash resources, and may be commenced or suspended at any time or from time to time at management’s discretion without prior notice, Palomar said.
Palomar, in 1997, introduced the first high-powered laser hair removal system. Since then, many of the major advances in light-based hair removal have been based on Palomar technology, according to the company. In December 2006, Palomar became the first company to receive a 510(k) over-the-counter (OTC) clearance from the FDA for a new, patented, home use, light-based hair removal device.
In other financing activity: Life Spine (Hoffman Estates, Illinois) said it has entered into a new relationship with LaSalle Bank, the largest bank headquartered in Chicago, and an indirect subsidiary of Netherlands-based ABN AMRO Bank. The credit facility from LaSalle will be used to help finance Life Spine’s spinal implants product line, as well as assist in further advancement of the company’s distribution network in the U.S. and abroad, the company said.
“While Life Spine continues to achieve strong profitability, our needs have continued to expand in new product development as well as field distribution. LaSalle’s support is an endorsement of our efforts to date, and provides an important avenue for Life Spine to access the capital necessary to continue our progress,” said Dan Martino, controller for Life Spine.
Life Spine says it is dedicated to improving the quality of life for spinal patients by increasing procedural efficiency and efficacy through innovative design, uncompromising quality standards, and the most technologically advanced manufacturing platforms. Life Spine has also received six separate 510(k) clearances from the FDA for new products in the last year.