A Medical Device Daily
Aspect Medical Systems (AMS; Norwood, Massachusetts) reported that it has exercised an option to purchase 2.5 million shares of Aspect common stock held by Boston Scientific (Natick, Massachusetts) pursuant to a previously disclosed termination and repurchase agreement, dated June 11, between the two companies (Medical Device Daily, June 13, 2007). The price for the repurchase is about $37.7 million.
Under the terms of the agreement, the companies concluded their neuroscience alliance, AMS purchased 2 million shares of AMS common stock held by Boston Scientific for about $32 million and obtained the right, for a period of six months following the date of the agreement, to purchase, in one or more transactions, any or all of Boston Scientific's position in AMS at a price of $15 a share, or the average of the closing prices of AMS stock over the 10 trading days up to and including the date on which Aspect exercises its right to repurchase, whichever is higher.
As of the close of the market on July 5, the date on which AMS exercised its right to repurchase, the 10-day trailing average closing price of its stock was $15.06. The closing of the repurchase is expected to occur on or about July 10.
Following the repurchase, Boston Scientific's holdings in AMS common stock will be about 1.5 million shares, or about 9% of the total number of shares of AMS common stock outstanding.
AMS retains the option to purchase additional shares from Boston Scientific at any time during the six month period subsequent to June 11. During this same period, Boston Scientific has agreed not to sell any of its Aspect stock, except to AMS.
The neuroscience alliance was established in May 2005 and involved a commitment by Boston Scientific of $25 million over five years to support research by Aspect in the depression and Alzheimer's markets (MDD, May 25, 2005).
AMS develops brain monitoring technology. To date, the company's Bispectral Index technology has been used to assess about 20 million patients and has been the subject of more than 2,800 published articles and abstracts.
In other financing news:
- MIV Therapeutics (MIVT; Atlanta), a developer of biocompatible coatings and advanced drug delivery systems, reported entering an agreement with various institutional investors for the private placement of 25.1 million units at a price of 50 cents a unit for a total gross price of $12.55 million.
Each unit consists of one share of common stock and one-half of one share purchase warrant exercisable at 55 cents a share for a period of five years. The transaction is expected to close on or about July 10, subject to the satisfaction of closing conditions.
MIVT said it expects to receive net proceeds of about $11.7 million, which it will use to further the development of its drug eluting stents, for commercial activities, and for general corporate purposes.
BMO Capital Markets acted as placement agent for the offering.
- pSivida (Perth, Australia) said that it closed the first tranche of its previously reported registered direct offering (MDD, July 3, 2007). Net of placement agents' commissions, the company received about $10.7 million (A$12.5 million) in proceeds from the first tranche, which related to 9,202,000 units.
Each unit consists of one American Depository Share (ADS), representing 10 ordinary shares, and one warrant to purchase 0.40 ADS, with a warrant exercise price of $1.65 (A$1.93) per ADS, exercisable from the date of issuance through the fifth anniversary of the issuance.
Cowen and Co. acted as lead placement agent; JMP Securities acted as co-agent in this offering.
The ADSs and warrants were offered under pSivida's effective shelf registration statement previously filed with the Securities and Exchange Commission on March 6, which registration statement became effective on March 9.
pSivida has developed Retisert, FDA-approved for the treatment of uveitis. Vitrasert is FDA-approved for the treatment of AIDS-related CMV Retinitis. The company also owns the rights to develop a modified form of silicon (porosified or nano-structured silicon) known as BioSilicon, which has applications in drug delivery, wound healing, orthopedics, and tissue engineering.
- TheraGenetics (London), a personalized medicine diagnostics company focused on central nervous system disorders, reported the completion of a $6 million (£3 million) Series A venture financing round.
Swarraton Partners led the financing with participation from Tudor Capital, IP Venture Fund, IP Group's venture capital fund which was raised in partnership with the European Investment Fund, and existing investor IP Group.
As part of the transaction, Stephen Brooke, managing partner of Swarraton Partners, has joined TheraGenetics' board of directors.
TheraGenetics is developing a portfolio of pharmacogenetic diagnostic tests.
- Language Access Network (LAN; Columbus, Ohio), a provider of video interpretation services, said it has completed a $1 million investment "from friends, family, and outside individual accredited investors."
LAN has also signed a letter of intent with La Jolla Cove Capital Investors for an additional $4 million in capital. Final details and contract for the financing are still under discussion, it said.
LAN bills itself as a pioneer in video language interpretation services for 150 foreign languages and American Sign Language (ASL) for the deaf and hard-of-hearing. It provides pharmacies and medical facilities with interpreters 24/7 through a central video language center.
- Image Technology Laboratories (ITL; Kingston, New York) reported that it has concluded $650,000 in debt financing.
"This financing will enable the company to move forward with a focus on expanding our sales and marketing efforts, as well as enhancing our technical support infrastructure," said Lewis Edwards, CTO and chairman.
ITL is a medical image and information management company in the healthcare IT market. The company has developed a single database "Radiology Information System/Picture Archive and Communication System," known as RIS/PACS, for managing patient information and medical images by hospitals and diagnostic imaging centers.