A Medical Device Daily

pSivida (Perth, Australia) reported that it closed the second tranche of its previously disclosed registered direct offering (Medical Device Daily, July 3, 2007).

The second part of the closing related to the sale of 5.2 million units at $1.25 (A$1.46) a unit to Pfizer (New York) in accordance with the terms of the collaborative research and license agreement, signed April 3, between the two companies.

Net of placement agents' commissions, the company received about $6 million (A$7 million) in proceeds from the second tranche and roughly $16.7 million (A$19.5 million) in the aggregate. Since entering into the agreement, Pfizer said it has invested a total of $11.5 million (about A$13.7 million) in pSivida's equity and it is pSivida's largest shareholder, holding about 10.2% of its outstanding equity.

Each unit consists of one ADS, representing 10 ordinary shares, and one warrant to purchase 0.40 ADS, with a warrant exercise price of $1.65 (A$1.92) per ADS, exercisable from the date of issuance through the fifth anniversary of the issuance.

Cowen and Company acted as lead placement agent, and JMP Securities acted as co-agent in the offering.

In addition, pSivida reported completing a sale of ordinary shares and warrants at A$0.146 ($0.125) per unit, with each unit consisting of one ordinary share and one warrant to purchase 0.40 ordinary share at an exercise price of A$0.192 ($0.165) per ordinary share to an investor in Australia.

The sale of roughly 20.5 million units netted pSivida an additional A$3 million (about $2.6 million).

In other financing activity:

• MIV Therapeutics (MIVT; Atlanta), a developer of next-generation biocompatible coatings and advanced drug delivery systems for cardiovascular stents and other implantable devices, said that the unregistered private placement of 25,100,000 units it disclosed last week (MDD, July 9, 2007) has closed. MIVT received net proceeds of $11.7 million.

The units were offered at a price of 50 cents a unit for gross proceeds of $12.55 million. Each unit consists of one share of common stock and one-half of one share purchase warrant exercisable at a price of 55 cents a share for a period of five years.

Pequot Capital Management and its affiliates, Rockmore Capital, and affiliates of Centrecourt Asset Management were among the institutional investors in the transaction.

• GE Healthcare Financial Services (Chicago) reported providing a $3.3 million lease line of credit to BioStorage Technologies (BST; Indianapolis).

BST provides short-term and long-term biomaterials storage, sample management and cold chain logistics. The company said that it will use the loan to support additional capital acquisitions.

• Neuroptix (Acton, Massachusetts) reported that it has received a $1 million milestone payment under its Alzheimer's Disease diagnostic collaboration with Merck & Co. (Whitehouse, New Jersey).

The collaboration, first disclosed in December (MDD, Dec. 5, 2006), calls for Neuroptix to provide Merck with access to its laser eye scanning technologies, which in preclinical studies has detected Alzheimer's-related amyloid protein aggregates in the lens of the eye. The quantitative technique has the potential for early detection and monitoring of Alzheimer's Disease progression.

• Optimal Reading Services Group (Birmingham, Alabama) reported completing its first round of institutional financing but did not disclose the financing amount.

Optimal Readings said it would use this investment to expand its service offerings and market territories.

Optimal Reading is a provider of optimization services for radiology.

Health Enterprise Partners, a Cain Brothers affiliate, led the financing round.

• MedCath (Charlotte, North Carolina) said it has completed a recapitalization of its Harlingen Medical Center (Harlingen, Texas).

As part of the recapitalization, MedCath and Valley Baptist Health System (Harlingen), a not-for-profit health system, have each elected to convert a portion of their existing debt with Harlingen Medical Center to ownership in the hospital. Following conversion, Harlingen Medical Center is owned 36% by MedCath, 32.1% by Valley Baptist and 31.9% by local physician investors. In addition, MedCath and Valley Baptist sponsored the formation of HMC Realty. MedCath holds 36.1% and Valley Baptist holds 18.6% of HMC Realty, which acquired the property of Harlingen Medical Center. HMC Realty entered into a long-term lease with Harlingen Medical Center. The Healthcare & Energy Finance group of Citicorp Leasing provided long- term financing to HMC Realty.