A Medical Device Daily

Vital Images (Minnetonka, Minnesota) reported the pricing of an underwritten public offering of 3 million shares of newly issued common stock at $31 per share before underwriting discounts and commissions.

The company has granted to the underwriters a 30-day option to purchase up to an additional 450,000 shares of common stock to cover any over-allotments.

Vital Images intends to use the roughly $87.5 million in net proceeds for general corporate purposes, including expanding sales and marketing, customer service and training efforts internationally and investing in product development resources. The company said it also intends to use the net proceeds for the acquisition of or investment in businesses, products and technologies that are complementary to its current products, can enhance the company’s market coverage or technical capabilities, or offer growth opportunities.

Piper Jaffray & Co. acted as the sole book-running manager for the offering. Wachovia Capital Markets, Jefferies & Co., and Thomas Weisel Partners acted as co-managers for the offering.

Vital Images is a provider of advanced visualization and image analysis solutions. The company’s technology gives radiologists, cardiologists, oncologists and other medical specialists time-saving productivity and communications tools that can be accessed throughout the enterprise and via the Web in the day-to-day practice of medicine.

In other financing news:

• Stem Cell Innovations (SCI; Scotch Plains, New Jersey) reported that it had raised $1 million through the issuance to an existing investor of a secured convertible note and warrants to purchase 10 million shares of the company’s common stock. The convertible note, due Nov. 16, 2007, is in the principal amount of $1 million, bears interest at the rate of 10% per annum, is secured by all the assets of the company and its subsidiaries, and is convertible into 10,000,000 shares of the company’s common stock.

The warrants are exercisable until Nov. 16, 2011 at a price of 12 cents per share. The note and the warrants are subject to full ratchet antidilution provisions. The investor has committed to invest an additional $1 million on the same terms, within 60 days of the closing date, subject to the continued satisfaction by the company of the conditions required to be satisfied with respect to the current offering. The company paid a fee equal to $25,000 and 250,000 shares of common stock in connection with the transaction and will pay the same fee upon the completion of the additional $1 million investment.

Stem Cell Innovations is a cell biology company with facilities in Scotch Plains, New Jersey, Houston, and Leiden, the Netherlands. Its human pluripotent stem cells, known as PluriCells, have the potential to aid in drug discovery, toxicology, and cell therapy.