A Medical Device Daily
Avitar (Canton, Massachusetts) reported completing a financing with investors for the sale of $750,000 of secured convertible notes and 1.5 million seven-year warrants.
It said that the proceeds will be used for marketing of the company's ORALscreen product, a noninvasive, rapid, onsite oral fluid test for drugs-of-abuse, as well as for general corporate development.
The notes, like the notes issued pursuant to the $3-million financing Avitar secured in September 2005, will mature three years from the date of issuance and bear interest at 8%. The notes, secured by the assets of the company, are convertible into shares of common stock of Avitar, at the option of the investors, at 65% of the average of the three lowest intraday trading prices of the common stock, as quoted on the OTC Bulletin Board for the 20 trading days preceding the date that the investors elect to convert.
Avitar manufactures products for the oral fluid diagnostic market, the disease and clinical testing market, and customized polyurethane applications used in the wound dressing industry.
It manufactures ORALscreen and also Hydrasorb, a topical dressing for moderate-to-heavy exudating wounds.
BioMag (Orangevale, California) reported that it has completed a private placement of $350,000 with International Investment Capital Corporation (IICC) at $1 a share
BioMag said that through its wholly owned subsidiary, Biospectrum Technologies, a company that has designed diagnostic equipment and immunoassays, it will identify “market inadequacies“ and fill those needs with new technologies and assays that are qualitative and quantitative.
IICC, established in 2002, facilitates securitizations of senior life settlement contracts. Clayton Hardman, president and CEO of Biomag, holds a 90% ownership position in IICC.