Medical Device Daily Executive Editor
Power Medical Interventions (Langhorne, Pennsylvania) has filed with the Securities and Exchange Commission for an initial public offering potentially raising up to $100 million. The number of shares to be offered and the share pricing were not available at press time.
PMI describes itself as the world's only provider of computer-assisted, micro-robotic, powered surgical stapling products.
The company's SurgAssist computer platform is used to cut tissue, close wounds, and reconnect anatomical structures, and is considered a preferable alternative to hand suturing. SurgAssist drives more than 16 patented devices which the company says has been used more than 100,000 times in a wide variety of surgical procedures throughout the U.S., Europe and Japan.
In September of 2006, the company reported raising $41 million from a private placement of shares of its Series D Convertible Preferred Stock. The offering was completed in two tranches.
Established in 2000, the company employs more than 140 people and has European offices in Germany and France.
Advanced Magnetics (Cambridge, Massachusetts) reported that it will offer 2 million shares of its common stock in an underwritten public offering. The company also will grant the underwriters a 30-day option to purchase up to another 300,000 shares of common stock.
All of the shares are being offered by Advanced Magnetics.
Morgan Stanley & Co. Incorporated is acting as the sole book-running manager for the offering. Bear Stearns, & Co. Inc. is acting as joint lead manager for the offering, Deutsche Bank Securities, Jefferies & Company and ThinkEquity Partners are acting as co-managers for the offering.
Advanced Magnetics utilizes its nanoparticle technology for the development and commercialization of therapeutic iron compounds to treat anemia and novel imaging agents to aid in the diagnosis of cancer and cardiovascular disease.
Combidex, a product under development, is a molecular imaging agent consisting of iron oxide nanoparticles for use in conjunction with MRI to aid in differentiating cancerous from normal lymph nodes. In March 2005, the company received an approvable letter from the FDA for Combidex, subject to certain conditions.
The company has two commercial products, Feridex I.V. and GastroMARK, imaging agents approved in the U.S., Europe and other countries.
In other financing activity:
• HEI (Minneapolis) has signed a three-year $8.3 million financing package with Wells Fargo Business Credit, the transaction consisting of an $8 million revolving line of credit, with $2.7 million of the revolver underwritten by the Export-Import Bank, and a $340,000 term loan.
The company said the proceeds will be used to repay the $5 million loan to HEI by Thomas Leahy, company chairman, repay other obligations and general operating purposes.
Leahy guaranteed the financing package up to $4 million and provided collateral to secure the guarantee in the amount of $4 million. In return, he will be paid a guarantee fee by the company, for the next six months, for the guarantee and collateral pledge.
HEI manufactures microelectronics, subsystems, connectivity and software solutions for OEMs supplying materials to the medical equipment and medical device, hearing, communications and industrial markets.
• Arcadia Resources (Southfield, Michigan), a developer of consumer healthcare services, said a group of investors has agreed to purchase company common for an aggregate price of $4,025,000. The investors also were issued warrants to purchase additional shares of common stock.
"We are gratified by this new investment on the part of an existing Arcadia shareholder, which represents a strong vote of confidence in our growth strategy to build upon the opportunities we see in the alternate site healthcare marketplace," stated John Elliott II, president/CEO and chairman of Arcadia.
Arcadia is a national provider of alternate site healthcare services and products, including respiratory and durable medical equipment; non-medical and medical staffing, including travel nursing; comprehensive central fill and licensed pharmacy services and other leading retailer websites. Through industry partnerships, the company is also establishing walk-in routine medical clinics inside of retail stores.
• FONAR (Melville, New York) reported that Rayond Damadian, MD, its founder, president and chairman, has purchased 8,500 shares of company stock in the open market, bringing his ownership to 120,302.12 shares of common stock.
In making the announcement, the company said that Damadian has not sold a share of Fonar stock in more than a decade. The purchase was made pursuant to the Company's corporate governance guidelines for insider stock purchases.
Damadian said, "It is my view that right now is the most exciting period in FONAR's 28-year history. Fonar Corporation has the ‘electric lights' while all other MRI vendors remain with the ‘gas lights'. Fonar's priority in this Upright MRI field is well deserved, after all it has labored to originate MRI and make the medical power of MRI technology available to the world."
• InSight Health Services Holdings (Lake Forest, California) reported that the offer to exchange shares of InSight's common stock for up to $194.5 million amount of 9 7/8% Senior Subordinated Notes, due 2011, of InSight's wholly owned subsidiary, InSight Health Services Corp., has been extended and will now expire at 5 p.m., EDT, time, May 21, unless further extended. InSight launched the offer on March 21, 2007.
The company said that as of May 16, about $163.5 million of notes had been tendered to the exchange agent.
InSight is a nationwide provider of diagnostic imaging services for managed care entities, hospitals and other contractual customers in over 30 states.
• Stericycle (Lake Foreest, Illinois) reported that its board has authorized a 2-for-1 stock split in the form of a stock dividend of one share payable on May 31, in respect of each share of common stock outstanding on the record date of May 17, 2007.
The split to increase the company's shares of common stock from 80 million to 120 million was approved on Wednesday at the company's annual meeting. There were 43,867,420 shares of common stock outstanding at May 14, 2007.