A Medical Device Daily
Vital Images (Minneapolis) reported that the underwriters of its recently completed public offering have exercised their option to buy an additional 354,003 shares of the company common stock to cover over-allotments.
Vital Images granted the underwriters a 30-day over-allotment option to buy up to 450,000 shares of common stock at $31 a share, less the underwriting discount. Net proceeds will be about $10.3 million. In total, including the over-allotment shares, the company will have sold 3,354,003 shares at $31 a share, resulting in net proceeds of roughly $98 million.
Vital Images said it intends to use the proceeds for expanding sales and marketing, customer service and training efforts internationally and investing in product development resources. It also intends to use the proceeds for the acquisition of or investment in businesses, products and technologies complementary to its products, to enhance its market coverage or technical capabilities, or offer growth opportunities.
Piper Jaffray & Co. acted as book-running manager for the offering. Wachovia Capital Markets, LLC, Jefferies & Company and Thomas Weisel Partners acted as co-managers.
Vital Images provides advanced visualization and image analysis solutions intended to give radiologists, cardiologists, oncologists and other medical specialists time-saving productivity and communications tools.
In other financing activity:
• Cylex (Columbia, Maryland) reported closing the first phase of a third round of private financing at $18.4 million, co-led by Channel Medical Partners and Canaan Partners.
“Our investors have recognized the importance of Cylex being first to market with an FDA-approved cellular immune function assay. Cylex has already had an important impact on the treatment of transplant recipients and is becoming a leader in the worldwide multi-billion dollar immune monitoring market” said Judith Britz, PhD, CEO and chairman of Cylex. “We have made important strides in advancing ImmuKnow as a standard of care at prestigious hospitals and among leading transplant physicians.”
Other investors in this round of funding include First Analysis and current investors: Cahn Medical Technologies, Calvert Venture Fund, Chesapeake Emerging Opportunities, Early Stage Enterprises, NJTC Venture Fund, Roche Venture Fund and the Washington Dinner Club.
“We believe Cylex is at a significant inflection point in its growth curve and are excited about future market opportunities,” said Carol Winslow, founder and principal at Channel.
• ReGen Biologics (Franklin Lakes, New Jersey) said it completed a $6.95 million private equity placement, selling roughly 18.8 million shares of restricted common stock at 37 cents a share, for gross proceeds of about $6.95 million.
The transaction includes 30% warrant coverage with a five-year term and an exercise price of 55 cents a share, and an option to each buyer to purchase the number of common shares bought at closing, for 37 cents a share within 15 days of FDA clearance of the company’s collagen scaffold device.
ReGen makes tissue growth and repair products for U.S. and global markets.
• NBI Development (San Francisco) said it has raised its first round of venture capital financing of $5.5 million.
NBI was founded by Mayo Clinic, Bay City Capital and the Venturi Group, and will focus on unmet needs in chronic pain management using implantable devices employing neuromodulation.
Three Arch Partners and Bay City Capital co-led the investment round with participation from MPM Capital, Aberdare Ventures, Mayo Clinic and the Venturi Group.
“Neuromodulation represents one of the most significant market opportunities in the medical device industry today with a dramatically under-penetrated market,” said Carl Goldfischer, managing director of Bay City Capital.
The company has operations in San Francisco as well as Rochester, New York and St. Paul, Minnesota.
• IsoRay (Richland, Washington) said the Securities and Exchange Commission declared its registration statement relating to the resale of 9,064,890 shares of common stock which includes 4,233,950 shares of common stock issuable upon exercise of warrants. The selling shareholders listed in the prospectus are permitted to sell some or all of their respective shares covered by the prospectus.
IsoRay will not receive any proceeds from the sale of shares under the registration statement.
“With the effectiveness of this registration statement coupled with the shares registered under our registration statement which became effective on June 8, 2006, we have now approximately 13,701,880 shares registered for our investors,” said Roger Girard, chairman and CEO of IsoRay.
IsoRay, through its IsoRay Medical subsidiary, produces Cesium-131 brachytherapy seed, used to treat prostate and other cancers.