A Medical Device Daily
IntelliDOT (San Diego), a developer of patient safety and workflow management solutions for healthcare, reported the closing of $13 million in Series C financing led by Integral Capital Partners.
The company said it intends to use the new capital to expand the market rollout of its CAREt bedside bar-coding system.
“Recent studies have demonstrated that bar code point-of-care technology can significantly reduce medication errors; however, less than 8% of hospitals in the country have adopted the technology,” said Thomas Klopack, president and CEO of IntelliDOT. “Our unique integration of hardware and software found in the CAREt system provides a cost-effective, easy-to-implement method for hospitals to enable nurse caregivers at the bedside,” he added.
The company said that the system is the first nurse-centered workflow manager created to connect caregivers and the information systems they need. It is designed to provide a straightforward interface that supports an integrated approach to medication safety and documentation at bedside, in a variety of healthcare settings.
By scanning a patient wristband, the CAREt hand-held guides the nurse through all required medication administration and documentation tasks that have accumulated for a patient. Information is clear, organized and delivered right into the caregiver's hand, right when it's needed.
DOBI Medical (Mahwah, New Jersey) said it has secured a securities purchase agreement with institutional investors for the private placement of $6 million in principle amount, of secured convertible debentures maturing on Aug. 28, 2007, and convertible initially into 75 million shares of the company's common stock.
In addition to the convertible debentures, discounted to $5.25 million, the company issued eight-month warrants at a price of 8 cents a share to purchase up to 75 million shares of common stock and three-year warrants at an exercise price of 15 cents a share to purchase up to 75 million shares of common stock, both callable by the company if certain conditions are met.
The company also issued three-year warrants to purchase up to 37.5 million shares of common stock at an exercise price of 50 cents per share.
The transaction will result in aggregate gross cash proceeds of about $5.25 million in two equal installments. The first installment is on May 1, and the second will be immediately after the effectiveness of the first registration statement. Net cash proceeds will be about $4.75 million.
The company said it intends to use the proceeds of the private placement for working capital and general corporate purposes with an emphasis on completion of its clinical trial research study and premarket approval application to the FDA, and international sales and marketing efforts.
Concurrent with this financing, DOBI closed a warrant reset offered to all accredited warrant holders. Participating warrant holders were allowed to exercise their warrants at an exercise price of 8 cents per share. In connection with that offering, the company issued 10.37 million shares of registered common stock, and issued three-year warrants to purchase 10.37 million shares of common stock at an exercise price 15 cents per share, as well as three-year warrants to purchase 5.18 million shares of common stock at an exercise price 50 cents per share.
The company realized net cash proceeds of about $839,000 in the transaction. No placement agent fees were associated with this warrant reset.
The company also reduced the conversion price of its Series A preferred stock from $1.31 per share to 37 cents per share.
DOBI is a development-stage, medical imaging company working to create a new means for improving the diagnosis of breast disease through the identification of abnormal vascularization associated with tumors.