A Medical Device Daily

NovaMed (Chicago) reported that it has entered into an amendment to its credit facility that increases the size of the facility from $50 million to $80 million and extends the term to June 30, 2009.

The amended credit facility also has an option allowing NovaMed to elect to increase the size of the facility to $100 million under certain conditions. National City Bank remains as agent, with LaSalle Bank, the Northern Trust Co., Associated Bank and Charter One Bank as the other participating banks.

The company said it intends to use the expanded credit facility for the acquisition and development of ambulatory surgery centers as well as for general corporate purposes.

“With three ambulatory surgery center acquisitions closed so far this year representing almost $20 million in total purchase price and a strong acquisition pipeline, we believe it is prudent to expand the size of our credit facility at this time,” said Thomas Hall, president and CEO. “We are very pleased with the terms of our amended credit facility and greatly appreciate the confidence expressed by our banks in NovaMed's management team and growth strategy.” As of June 30, NovaMed had about $32 million in outstanding borrowings from its credit facility.

NovaMed operates ambulatory surgery centers in partnership with physicians. NovaMed currently has ownership interests in 31 centers located in 17 states.

During the period June 21 through July 4, Elekta (Stockholm, Sweden) said it repurchased 801,700 B shares at an average price of SEK 124.67, totaling SEK 99.95 million ($13.85 million)

Accordingly, Elekta's current holding of treasury stock amounts to 801,700 B shares, which Elekta intends to propose to the annual general meeting to be cancelled.

These repurchases were carried out in line with the board's decision on June 14 to direct management to initiate repurchase of shares in an amount of SEK 100 million.

The total number of shares in Elekta prior to cancellation of the shares now repurchased amounts to 94,349,927, the company said.

Elekta is an international medical-technology firm providing solutions, comprehensive information systems and services for improved cancer care and management of brain disorders. The company's solutions employ non-invasive or minimally invasive techniques, including, among others, its Leksell Gamma Knife for non-invasive treatment of brain disorders and Elekta Synergy for image-guided radiation therapy.

Tutogen Medical (Alachua, Florida), a manufacturer of sterile biological implant products made from human (allograft) and animal (xenograft) tissue, reported that it has completed a $3 million private financing with an institutional accredited investor and that the American Stock Exchange (AMEX) has accepted the company's plan to regain compliance with AMEX's listing standards by today.

In the private placement, Tutogen issued a $3 million convertible debenture and warrants to purchase up to 175,000 shares of its common stock. The debenture, which bears interest at the rate of 5% per year (payable quarterly in arrears), is due upon the earlier of 12 months from the date of issuance or upon a change in control of the company, and is convertible into common stock at a price of $5.15 per share at any time at the election of the holder.

The warrants are exercisable at a price of $5.15 per share at any time at the election of the holder until the earlier of the third anniversary of the date of issuance or upon a change in control of the company.

The $5.15 conversion and exercise prices represent a premium to the market price of Tutogen's common stock on the day prior to closing.

In other financing news, Chembio Diagnostics (Medford, New York) reported that it raised $1.3 million in secured debt financing through a private placement to four institutional investors. Each purchaser received a secured debenture due in 90 days with interest at 0.667% per month and a warrant to purchase up to 400 shares of the company's common stock for each $1,000 loaned to the company, with an exercise price of 75 cents per share and an exercise term of 5 years.

The debentures are secured by the assets of the company and its wholly owned subsidiary, Chembio Diagnostic Systems.

Chembio Diagnostics develops rapid diagnostic tests for various infectious diseases. The company has received approval from the FDA for its Sure Check HIV 1/2 and HIV 1/2 Stat-Pak rapid test premarket approvals.

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