A Medical Device Daily
Viking Systems (San Diego), a maker of high-performance laparoscopic vision systems for use in minimally invasive surgeries, has completed an $8 million private equity financing with accredited investors.
The proceeds will be used to support the commercialization of the company's core products, the 3Di and 2Di Digital Vision Systems, to expand the solution portfolio addressing the needs of the digital operating room, and to continue growth of the original equipment manufacturer business, it said.
Pursuant to this private financing, Viking sold 8,000 shares of its Series B preferred stock. In connection with its sale of the stock, Viking entered into a securities purchase agreement and registration rights agreement with each of the investors. Each of the investors were also issued common stock purchase warrants in the preferred stock transaction.
As a condition to the closing of the preferred stock transaction, Viking has completed a conversion of certain outstanding convertible notes in the aggregate principal amount of $4.75 million. These convertible notes were issued in 2005 and were originally due to be paid March 22.
All 8,000 shares of preferred stock offered were sold at the price of $1,000 per share. A total of 7,250 shares of preferred stock were issued for $7.25 million in cash and 750 shares of preferred stock were issued in connection with the conversion of notes in the principal amount of $750,000.
The shares of preferred stock are initially convertible into shares of Viking's common stock at a price of 18 cents per share; however, the conversion price is subject to adjustment based upon certain conditions.
Each purchaser of preferred stock was issued warrants to acquire shares of Viking common stock. Total warrant coverage equals 50% of the number of shares of common stock that are issuable upon conversion of the Series B preferred stock. The exercise price of the warrants is 35 cents per share, expiring on the fifth anniversary date of their issuance.
Based upon the initial conversion price, the warrants entitle the holders to purchase an aggregate of more than 22.22 million shares of Viking common stock.
• Positron (Houston), a developer of positron emission tomography (PET) medical devices, said it has completed a financing agreement for $2 million with private investors.
The company said the funding enables it to immediately execute its business plan for sales and marketing of its newly designed PET and PET/CT devices through the company's joint venture with Neusoft Medical Systems of China.
According to the company, the additional capital will also allow Positron to strategically acquire and develop select software and hardware technologies that will further grow their nuclear medicine product line and operations.
The company received initial proceeds of $700,000 in the form of 6% secured convertible debentures. The second payment of $600,000 will be funded upon the filing of a registration statement by the company with the SEC. The final tranche of $700,000 will be received by the company when the registration statement is declared effective by the SEC. The company also sold warrants to the investors to purchase shares of the company's common stock.
Positron markets advanced medical imaging devices utilizing PET technology under the trade name Posicam systems. Posicam systems are used in diagnosis and treatment of patients in the areas of cardiology, oncology and neurology.
In other financing activities:
• Pediatric Prosthetics (Houston), a specialist in pediatric prosthetics, reported that it has received a convertible debt financing in the amount of $1.5 million. Net proceeds will be used to execute an aggressive national family awareness program in an effort to rapidly accelerate fittings of its customized prosthetics for children.
“Given we serve a highly specialized market niche in the prosthetics industry, community outreach is a key component of our growth strategy,” said Kenneth Bean, vice president of operations of Pediatric Prosthetics. “With this funding, we can now aggressively implement our national expansion program, establish additional affiliate offices and intensively market our services from coast-to-coast.”
• A 4:1 share split was adopted at Q-Med 's (Uppsala, Sweden) annual general meeting on May 3.
The record day will be June 14 and the new shares will be registered in shareholders' accounts on June 15.
The last day for shares to be traded before the split will be June 9. The first day for shares to be traded after the split will be June 12.
The split means that the number of outstanding shares will increase from 24.82 million to 99.27 million shares.
Q-Med develops medical implants based on its technology for the production of the stabilized non-animal hyaluronic acid, NASHA. The products covered by the Restylane trademark are used for the filling out of lips and facial wrinkles and for facial contouring and today account for the majority of sales. Durolane is Q-Med's product for the treatment of osteoarthritis of the hip and knee joints. Deflux is a product for the treatment of vesicoureteral reflux (a malformation of the urinary bladder) in children. Zuidex is used for the treatment of stress urinary incontinence in women.