A Medical Device Daily
CircuLite (Hackensack, New Jersey), a company focused on the development of a circulatory assist technology for the management of chronic heart failure, reported the closing of an additional $5 million placement, thus completing a $25 million Series B private placement.
Cr dit Agricole Private Equity joins Forbion Capital Partners (formerly ABN AMRO Life Sciences), Foundation Medical Partners, the lead investor, Oxford Biosciences Partners and SB Life Science Ventures in the $25 million Series B funding.
The company said the funds from this latest round will support the company's first-in-man trial in 2007, the initiation of the U.S. investigational device exemption Phase I Feasibility trial enrollment in 2008 and the initiation of CircuLite's endovascular system preclinical evaluation.
"The additional $5 million investment will take CircuLite well into the U.S. Phase I Feasibility trial and allow us to obtain the initial patient follow-up data," said Paul Southworth, president/CEO of CircuLite. "It will also allow us to start our preclinical evaluation of the endovascular system."
CircuLite is developing a superficially placed circulatory assist device for the treatment of chronic heart failure. The company's Synergy pocket circulatory assist device is in preclinical studies and the company is preparing for the first in man implant in 2007. The Synergy device features a micro-pump that is placed superficially in the "pacemaker pocket." The micro-pump is minimally invasively connected to the left atrium and the subclavian artery, and can pump up to 3 liters of blood flow per minute. The company believes this minimally invasive placement of the device will allow the transformation of the treatment of chronic heart failure patients from the acute decompensated hospitalized patient to the chronic, ambulatory heart failure patient.
Novadaq Technologies (Toronto), a developer of real-time medical imaging systems and image guided therapies for the operating room, said it has engaged RBC Capital Markets as its agent for a proposed private placement of about $15 million of common shares.
The company said it intends to use the proceeds to fund ongoing product R&D efforts, sales and marketing expenses and recent acquisitions, including the exclusive distribution rights to PLC Medical System's (Franklin, Massachusetts) Heart Laser System for transmyocardial revascularization (TMR) in the U.S. (Medical Device Daily, March 27, 2007), the acquisition of certain business assets of Xillix Technologies (Richmond, British Columbia) (see deals, p. 4), and for general corporate purposes.
The placement is anticipated to close in early May.
In other financing news:
• MedicalCV (Inver Grove Heights, Minnesota) reported selling $8 million of senior secured debt to an affiliate of Whitebox Advisors, a beneficial owner of about 11.5% of MedicalCV's common stock. The company also issued a five-year warrant to purchase 1.2 million shares of common stock at $4 a share to Whitebox.
The debt has a three-year term. Interest at 11% per year is payable quarterly in arrears. During the first year, interest will accrue and be added to the principal balance. At the end of the first year, based on the sale of the $8 million note, MedicalCV will issue a five-year warrant to purchase 137,546 shares of common stock at $4 per share to Whitebox. During the second and third years, MedicalCV has the option to pay interest in cash, or have the interest accrue and be added to the principal balance. Based on the sale of the $8 million note, MedicalCV will issue additional five-year warrants for the purchase of between 36,783 and 44,475 shares of common stock for each quarter in which it determines that the accrued interest should be added to principal during the second and third years.
The company said that the net proceeds of the offering will be used for working capital purposes.
• Arbios Systems (Waltham, Massachusetts), a biomedical device and cell therapy company developing liver assist products, reported closing a private placement of units, consisting of its common stock and warrants to purchase its common stock, for proceeds of $4.8 million.
"We anticipate that these funds will enable us to move forward aggressively with our plans for product registration of our Septet liver assist device in Europe under the medical device CE Mark as well as for initiation of a pivotal clinical trial of Septet in support of future commercialization of the product in the United States," said Walter Ogier, president/CEO of Arbios.
Participating in the financing were new investors, including funds managed by MicroCapital, as well as several current investors including Bristol Investment Fund. Musket Research Associates, an investment banking firm focused on emerging healthcare companies, served as placement agent.
• Depomed (Menlo Park, California) reported that it has completed a self-managed registered direct offering for $20 million of its common stock to two existing institutional investors.
The company sold 5.3 million shares pursuant to its effective shelf registration statement at a price of $3.775 per share.
Depomed is a specialty pharmaceutical company utilizing its AcuForm drug delivery technology to develop new oral products and improved, extended release formulations of existing oral drugs.