A Medical Device Daily
OmniGuide (Cambridge, Massachusetts), a developer of hollow-core photonic bandgap optical fibers, reported the closing of a $20-million Series D round of financing. Electro Scientific Industries (ESI; Portland, Oregon), a supplier of production laser systems for microengineering applications, led the round, which was joined by Stata Venture Partners, Argonaut Ventures, 3i Technology Partners, Alliance Technology Ventures, Jeff Swartz (Kelev Hayam), and Mukesh Chatter (CWN).
Prior to this financing, the company had raised $29.5 million from Ray Stata, CWN Trust, Alliance Technology Ventures, 3i US, Westbury Partners and Gainesborough Investments.
OmniGuide said it would be using the investments to enhance product offerings, expand manufacturing capacity, and increase market penetration. OmniGuide also has invited Nicholas Konidaris, ESI's CEO, to join its board.
OmniGuide's FDA-cleared fibers are designed to offer a flexible fiber-based delivery system for CO2 lasers facilitating non-invasive laser microsurgery.
ESI is a supplier of production laser systems. The company's products enhance electronic-device performance in three sectors – semiconductors, components and electronic interconnect – by enabling fine-tuning of device microfeatures in high-volume manufacturing environments.
IsoTis OrthoBiologics (Lausanne, Switzerland/
Irvine, California) reported that it has secured a $5 million credit facility from SVB Silicon Valley Bank for an initial two-year term. The line of credit will help fund IsoTis' working capital requirements necessary to support its current trend of strong growth.
Pieter Wolters, president and CEO of IsoTis OrthoBiologics, said: “In combination with the proceeds from our recent sale of the dental business to Keystone Dental for $7.4 million, the capital provided by the Silicon Valley Bank credit facility substantially strengthens our cash position, which, including restricted cash, was $15 million as of June 30. The two transactions provide additional capital that can be invested to further the growth of our orthopedics business.”
IsoTis has a product portfolio with several synthetic bone graft substitutes on the market and others in development, an established North American independent distribution network and an expanding international presence.
In other financings activity:
• EpiCept (Englewood Cliffs, New Jersey) reported that it has successfully closed a $10 million senior secured term loan with Hercules Technology Growth Capital.
The company said that the funds will be used to advance its pipeline, including Ceplene, its lead oncology compound for the treatment of acute myeloid leukemia (AML); LidoPAIN SP, its sterile lidocaine patch for the treatment of post-surgical incision pain; and LidoPAIN BP, its non-sterile lidocaine patch for the treatment of acute or recurrent lower back pain.
The loan has a scheduled final maturity on Aug. 30, 2009. EpiCept will be able to receive a six-month extension of the final maturity date, if it completes certain milestones.
In connection with the term loan, the company granted to Hercules warrants to purchase about 471,000 shares of company common stock at $2.65 per share, which was the volume-weighted average of the closing prices for its common stock for the 20 days preceding loan close. The company granted Hercules registration rights with respect to the resale of the shares of common stock issuable upon exercise of the warrants.
EpiCept is a specialty pharmaceutical company focused on the treatment of pain and cancer.
• Birner Dental Management Services (Denver), operators of Perfect Teeth dental practices, reported that it is initiating a modified Dutch Auction tender offer for up to 175,000 shares of its common stock with proceeds from a $5 million term loan.
In the offer, shareholders will have the opportunity to tender some or all of their shares at not greater than $28 a share, or less than $17.50 a share. The offer will expire on Sept. 29, unless extended.
Computershare Trust Co. is the information agent for the tender offer.
Birner says that it acquires and manages “geographically dense” dental practice networks in select markets in Colorado, New Mexico, and Arizona. Currently, it manages 60 dental offices, of which 35 were acquired and 25 were de novo developments.
Genesis opens Los Angeles HQ
Genesis Bioventures reported that it has opened its new corporate headquarters in Los Angeles, completing the company's planned relocation to California from Vancouver, British Columbia.
Last year the company announced a restructuring and reorganization to focus on commercializing the Mammastatin Serum Assay, offered by its wholly owned subsidiary, Biomedical Diagnostics, and the BSE Rapid Assay for “mad cow” disease, offered through Prion Developmental Laboratories, its other portfolio company.
Moving the company to California was a “key milestone” in Genesis' reorganization, it said.
Genesis Bioventures is a biomedical development company focusing on the development and commercialization of diagnostics and therapeutics in oncology and neurodegenerative diseases.