A Medical Device Daily
MGT Capital Investments , an investment company focused on healthcare information technology (HIT), reported that its subsidiary, Medicsight (London), has begun trading of its ordinary shares on the AIM Market of the London Stock Exchange under the symbol MDST.
The company raised $64 million (£32 million), before expenses, by placing 29,090,909 ordinary shares at $2.19 (£1.10) per share, and now has a market capitalization of $340 million (£171 million) based on the placing price.
At the same time as the initial public offering, MGT reduced its holding in Medicsight to 85 million shares, representing 54.7% of the issued share capital, and has raised about $24.5 million net of expenses. This leaves MGT with more than $40 million in cash in addition to its shareholdings in Medicsight and Medicexchange .
Tim Paterson-Brown, CEO of MGT and chairman of Medicsight, said, "This successful AIM listing demonstrates the success of MGT's strategy of developing and growing HIT companies and unlocking their value for our shareholders. This listing provides Medicsight with the working capital required to execute its growth plan and increase its value to shareholders."
MGT Capital is an investment company with two subsidiaries focused solely on the HIT sector.
Medicsight, develops computer-aided detection and computer assisted reader software. Its second subsidiary, Medicexchange, operates Medicexchange.com, an online multi-vendor sales channel for diagnostic, treatment and surgery planning solutions for cardiac, thoracic, breast imaging, orthopedic, and gastro intestinal imaging.
Vasomedical (Westbury, New York), a developer of non-invasive treatments for management of cardiovascular diseases, reported entering a business arrangement with Living Data Technology (Brooklyn, New York) and its affiliates in which Kerns Manufacturing (Long Island City, New York), an affiliate of Living Data, made a $1.5 million investment in Vasomedical through a common stock purchase. Vasomedical also has an option to sell another $1 million of its common stock to Kerns.
Vasomedical and Living Data also entered into agreements that grant Vasomedical exclusive rights to market and distribute Living Data's AngioNew external counterpulsation (ECP) systems in the U.S. and grant Living Data exclusive right to manufacture and supply products to Vasomedical. The arrangement also provides for the appointment of two representatives of Living Data to Vasomedical's board of directors, including Simon Srybnik, chairman of both Kerns and Living Data.
"This transaction offers us the opportunity to expand our patient base for this important medical treatment," said Vasomedical's new president/CEO Dr. John CK Hui. "With the new capital infusion, together with our recently restructured management team, plus the addition of Living Data and Kern's business expertise, we can begin to execute a new marketing and sales plan."
Vasomedical develops EECP therapy systems to deliver its form of enhanced external counterpulsation therapy, a noninvasive, outpatient therapy used in the treatment of ischemic cardiovascular diseases, currently used to manage chronic stable angina and heart failure.
Living Data offers two ECP models: AngioNew V is a mobile system that can be wheeled around to treat patients on any bed or recliner; it does not require a dedicated treatment table or treatment room; AngioNew VI is a table-based system of one-piece construction, suitable for use in treatment rooms with steady patient flow. Both AngioNew systems are FDA cleared and CE marked.
In other financing news:
• NovaMed (Chicago) said it will offer $52.5 million of convertible senior subordinated, notes due 2012, and will grant the underwriter of the notes a 30-day option to purchase up to $7.5 million of additional notes to cover any over-allotments.
Deutsche Bank Securities will be the underwriter of the note offering.
NovaMed said it intends to enter into a convertible note hedge transaction with an affiliate of the note offering's underwriter, and the company said it intends to sell warrants exercisable for its common stock to the entity that acts as counterparty in the note hedge transactions.
NovaMed said it will use a portion of the proceeds to fund the cost of the convertible note hedge and warrant transactions. It plans to use the remaining net proceeds from the note offering to repay outstanding borrowings under its $125 million credit facility and may thereafter draw down those funds again to use for general corporate purposes
NovaMed acquires and operates ambulatory surgery centers, with ownership interests in 38 surgery centers in 18 states.
• Genesis Bioventures (Los Angeles) reported an agreement with eFund Capital Management for corporate financing and strategic development. Terms were not disclosed.
eFund will provide additional financing to the company, advise the company on restructuring and corporate development, and manage the company's senior financing.
eFund previously invested in Genesis Bioventures in May in a convertible debenture and established a $10 million equity line of credit for the company.
Genesis is a biomedical firm focusing on the development and commercialization of its owned and licensed assets for diagnostic and therapeutic product development. eFund is a private equity firm providing capital and strategic support to both public and private companies.