A Medical Device Daily
Cytori Therapeutics (San Diego) reported entering into a strategic equity agreement with Green Hospital Supply (Osaka, Japan), one of the largest medical equipment suppliers in Japan, which will purchase 1 million shares of Cytori common stock at $6 a share.
The $6 million investment will close on or about April 12, assuming satisfaction of customary conditions.
"With this equity position in Cytori, Green Hospital Supply is making its first strategic investment in the emerging field of regenerative medicine," said Kunihisa Furukawa, president of Green Hospital. "We have the required infrastructure and consulting experience to effectively provide and integrate certain regenerative medicine technologies, which may include cell preservation services, to medical centers throughout Japan."
Christopher Calhoun, CEO of Cytori, said, "This deal bolsters our cash position, adds another strategic financial partner who shares our vision for regenerative medicine, and allows us to maintain our focus on the development of therapeutic applications for the Celution system and its near-term launch in Europe," said. "We have jointly identified future collaborative opportunities, which we look forward to further exploring."
Green Hospital operates three businesses, offering, it says, "one-stop solutions for medical institutions in Japan to optimize their hospital management."
Its Total Pack System business offers solutions for clients to open, relocate, add or renovate hospital facilities. Green Hospital continues these relationships by selling medical practice materials and consumables after hospital start-up (the Medical Supply Business), and supplying meals and medical-related services ( the Health Care Business).
Cytori is developing stem cell and regenerative cell therapies for cardiovascular disease, reconstructive surgery and many other serious chronic, and life threatening conditions. In these therapies, physicians remove a small amount of a patient's adipose tissue, and run it through the company's Celution system. This system separates and concentrates stem and regenerative cells from adipose tissue so they may be quickly administered back to the patient about an hour later.
In other financing activity:
• Calypte Biomedical (Lake Oswego, Oregon), a manufacture of diagnostic tests for the rapid detection of antibodies to the HIV virus, reported subscription agreements with four accredited investors who purchased $5.2 million of its common shares. The company issued 100 million shares of its common stock at $0.052 per share and 150 million warrants exercisable over the next 18 months.
Calypte said the proceeds will be used primarily for general working capital and related investments.
The investors, from Geneva and Dubai, United Arab Emirates, were led by David Khidasheli, chief technology architect and chairman of Informap Production.
With closing of this investment, Calypte extended the maturity of its 8% secured convertible notes and its 7% promissory notes issued under the 2005 credit facility with Marr Technologies, aggregating about $9.2 million, from April 3, 2007 to April 3, 2009.
"Following this financing, Marr owns over 19% of our outstanding common stock," said Roger Gale, Calypte's CEO and chairman. "We believe these contacts and resources will complement our own. In addition to this initial $5 million investment, the financing also includes an intermediate package of warrants that can be a source of up to $13.5 million in additional funding over the next 18 months. We believe we are poised to take advantage of market opportunities, fulfilling important humanitarian needs starting with our non-invasive diagnostic test that serves as a first step in the fight against HIV/AIDS."
• Omega Healthcare Investors (Timonium, Maryland) priced its previously disclosed (Medical Device Daily, Mar. 29, 2007) public offering of 6.2 million shares of its common stock at $16.75 per share for gross proceeds of $103.9 million.
The company also granted underwriters a 30-day option to purchase up to another 930,000 shares of common stock to cover over-allotments.
UBS Investment Bank acted as sole book-running manager for the offering. Banc of America Securities, Deutsche Bank Securities and Stifel Nicolaus acted as co-managers for the offering.
Omega invests in and provides financing to the long-term care industry.
• The Quantum Group (Wellington, Florida) reported that during its annual shareholder meeting last August, the majority of its shareholders approved a reverse split the company's common stock.
On March 9, the board authorized a 1-for-25 reverse split that became effective yesterday.
The company has also been assigned a new quotation symbol, QNTM, and will continue to be quoted on the OTC Bulletin Board
As of March 28, Quantum had about 41.2 million shares outstanding. With the reverse split, the outstanding shares of common stock equal about 1.65 million.
Quantum Group is one of Florida's largest community-based healthcare provider systems.