A Medical Device Daily
MedCath (Charlotte, North Carolina) reported that the underwriters of its common stock offering exercised their over-allotment option to purchase an additional 400,000 shares of MedCath common stock from certain selling stockholders at $25 per share.
The underwriters exercised the option on Nov. 27, and the transaction closed yesterday. The company did not receive any proceeds from the sale of shares by the selling stockholders.
The company originally reported completing its public offering of 4.5 million shares of common stock, 1.7 million of which were sold by the company, 2.8 million sold by stockholders, at $25 per share earlier this month (Medical Device Daily, Nov. 14, 2006).
The selling stockholders had granted underwriters the right to purchase up to another 675,000 shares at the public offering price.
The company said it plans to use the proceeds from its portion of the offering — roughly $42.5 million before expenses — to pay off part of its senior notes due in 2012, as well as for working capital and other corporate purposes.
Citigroup Global Markets, Wachovia Capital Markets and Deutsche Bank Securities acted as joint book-running managers for the underwritten offering. In addition, Banc of America Securities, Raymond James & Associates, and Stephens Inc. acted as co-managers for the offering.
MedCath is a healthcare provider focused primarily on the diagnosis and treatment of cardiovascular disease.
Orthovita (Malvern, Pennsylvania), a spine and orthopedic biosurgery company, reported that the underwriters of its common stock offering that closed on Nov. 22 have exercised their over-allotment option with respect to the purchase of 1,119,128 additional shares of common stock at $3.25 per share.
The net proceeds from the over-allotment option will total about $3.4 million, increasing the total net proceeds to the company from the offering to about $26.5 million. The purchase of the over-allotment shares is expected to close today.
The company originally priced the offering of 7.7 million shares plus 1.155 million shares of common stock for the purchase of any over-allotments on Nov. 18 (MDD, Nov 20, 2006).
UBS Securities acted as the sole book-running manager for the offering and First Albany Capital acted as co-manager for the offering.
In other financing activity:
• Nymox Pharmaceutical (Hasbrouck Heights, New Jersey) reported securing $13 million in private equity financing.
The company said the funds will be used for general corporate purposes.
The placement of common stock is with institutional investors who have participated in previous financings for the company, and is priced at a 3% discount to the market price. There are no warrants with the placement and no restrictions on other corporate financing.
Nymox’s CEO, Paul Averback, said, “This financing allows Nymox to continue to advance our products in development to market while maintaining our very low burn rate, with minimal dilution to our shareholders. The company has no long-term debt.”
Nymox is a biotech company engaged in the R&D of therapeutics and diagnostics, with an emphasis on products targeting the aging population. Currently Nymox has three products on the market and a pipeline of diagnostic and drug and products. The company markets NicAlert and TobacAlert tests for measuring tobacco product exposure, and AlzheimAlert, a test to aid in the diagnosis of Alzheimer’s disease.
• Renovar (Madison, Wisconsin), an early-stage company focused on the development of kidney disease diagnostics, reported that it has closed a round of financing of $1.22 million.
This financing round, Renovar’s second, brings the total capital raised by the company to $3.2 million, it said. The proceeds will be used to support its efforts to secure FDA clearance of its Renokine I product, and other product research and development activities.
Investors that participated in the recent round include NEW Capital Fund, Wisconsin Investment Partners and individual investors, including the company’s president/CEO, Peggy Hedberg. Wisconsin Investment Partners also participated in the company’s first round of financing.
• FEI (Hillsboro, Oregon) said it has filed a registration statement on Form S-3 with the Securities and Exchange Commission relating to an offering of up to 8,406,007 shares of its common stock.
The shares are being offered by Philips Business Electronics International a wholly owned subsidiary of Koninklijke Philips Electronics (Amsterdam, the Netherlands).
FEI said it will not receive any of the proceeds of the offering.
Merrill Lynch & Co. will be the sole book-running manager for the offering. Credit Suisse Securities will be co-lead manager. Needham & Co and Thomas Weisel Partners are serving as co-managers.
FEI supplies products and systems that enable research, development, and manufacturing of nanoscale features. The company offers focused ion beam (FIB) equipment, scanning electron microscopes (SEMs), transmission electron microscopes, and DualBeam systems, which combine a FIB and SEM on a single platform, as well as computer aided design navigation and yield management software.