A Medical Device Daily

Advanced Liquid Logic (ALL; Research Triangle Park, North Carolina), which calls itself North Carolina's "smallest, most high-tech biotechnology plumbing company" is the first recipient of a new loan from the North Carolina Biotechnology Center (also Research Triangle Park).

ALL, a microfluidics "lab-on-a-chip" spinout from the Pratt School of Engineering at Duke University (Durham, North Carolina), said it is the first company in the state to get a Biotechnology Center Strategic Growth Loan (SGL). The $160,000 boost is the latest of several loans from the Biotechnology Center to the firm.

The Biotechnology Center said it launched the SGL concept earlier this year to help new biotechnology companies in the state survive the startup process. An SGL may provide as much as $250,000, but the loan must be matched by an equal "angel network" or venture capital loan or investment.

"We're glad the Biotechnology Center is there to help meet a critical need," said Richard West, ALL president/CEO. "The challenge we face is that there is just not enough early stage capital in this region to fund even the most promising companies. Over the last few years venture capital financing has moved downstream to later-stage companies, where products under development are closer to providing market return for investors."

He said a network of angel investors provided the required SGL match for his firm.

The Biotechnology Center has been providing loan programs to new biotechnology ventures for more than 17 years, targeting start-up company research.

But the SGL isn't restricted to research funding, said John Richert, vice president of the Biotechnology Center's Business & Technology Development Program. "The difference here," he said, "is that these funds can also be used for a wide range of needs — hiring key non-executive employees, to help secure patent rights, to pursue business-development or licensing opportunities.

ALL's core technology involves electronics for moving and analyzing miniscule droplets of liquid — droplets measured in microliters and even nanoliters. Though the field of microfluidics research is growing, West said his firm is approaching it in a unique way. Most efforts in the field have been in channel-based technology using pumps, valves and pipes made on a micro scale, he said.

"But ours is done on a flat printed-circuit board or other specialized surface, and we move material around by turning switches on and off using a set of physics called electro-wetting. When you wax your car you can see how it makes water bead up on the surface. We're able to switch that droplet's properties from beading up to sitting down on the surface, manipulating its surface energy by turning electrodes on or off."

Put a bunch of electrodes in an array of a specific design, and you can, by sequentially turning them on and off, move droplets of blood or other fluid around the surface. The concept holds huge promise in diagnostic and research instrument applications, the company said.

In other financing activity:

  • Elbit Medical Imagining (Tel Aviv, Israel) reported that its subsidiary, Plaza Centers (PC) has reported the successful pricing of its initial public offering of ordinary shares. The offer price was set at 180 pence per ordinary share.

Based upon the offer price, the market capitalization of PC at the commencement of conditional dealings on the London Stock Exchange (LSE) will be 514.3 million (about $970 million) and will consist of about 85.71 million new ordinary share.

It will trade under the ticker symbol PLAZ.

As a result of this offer, Elbit Medical Imaging said it expects to recognize a capital gain of about NIS 600 million (about $140 million).

  • Advanced Materials Group (AMG; Dallas) reported that Robert Delk, past president/CEO and current managing partner and director of Delk Holdings and Delk Partners, sold 1,419,218 shares, about 11.1%, of the outstanding shares in Advanced Materials Group, in a private transaction to certain existing shareholders of the company that include Chairman Tim Busch, CEO Ric Brutocao, President William Mortensen and its largest single shareholder, Plus Four Private Equities.

"Mr. Delk had performed an important role in establishing the direction of the company and, after his departure about 18 months ago, decided to pursue other investment options in which he could become more active," Mortensen said. "We are thrilled with this opportunity to be able to purchase equity in our company for which we are committed to grow and improve shareholder value over the coming periods."

AMG makes medical, consumer and industrial products from flexible materials such as foams, films, fabrics and pressure-sensitive adhesives.