A Medical Device Daily

Response Biomedical (Vancouver, British Columbia) reported that it has closed private placements raising gross proceeds of $12 million. The financing is comprised of a $10 million brokered private placement, and a $2 million non-brokered private placement which was previously reported in December.

With the closing of the financing, Response also reported the appointment of five former directors and senior executives of ID Biomedical (also Vancouver) to Response Biomedical's board of directors. Effective immediately, Dr. Anthony Holler, Todd Patrick, Dr. Richard Bastiani, Richard Bear and Ian Webb, former CEO, president and COO, chairman of the board, CFO, and director, respectively, of ID Biomedical have joined the company's board.

“The proceeds of this financing significantly improve the company's balance sheet and provide capital to enable the continued execution of our business strategy for RAMP, including exploiting opportunities we see in rapid clinical cardiovascular and infectious disease testing,“ said Bill Radvak, president and CEO of Response.

The financing consisted of an aggregate total of 24 million units at a price of 50 cents per unit, each unit consisting of one common share and one-half of one common share purchase warrant with a four-month hold period expiring on July 31, 2006. Each whole warrant entitles the holder to purchase one common share of the company at a price of 62 cents per share for a period of 24 months from the closing date of the private placement. On the brokered private placement, the company paid commissions of 7% cash and 7% warrants exercisable to purchase common shares at 62 cents per share for 24 months. A finder's fee of $33,000 was paid on a portion of the non-brokered financing.

The proceeds from the financing will be used for general working capital purposes, repayment of the $1 million line of credit, capital equipment acquisitions required for the scale up of the company's manufacturing processes, and to expedite the commercialization of lead new product candidates.

Response makes rapid on-site diagnostic tests for use with its portable RAMP platform for clinical and environmental applications. RAMP tests are commercially available for the early detection of heart attack, environmental detection of West Nile virus, and biodefense applications including the rapid on-site detection of anthrax, smallpox, ricin and botulinum toxin.

Sutura (Fountain Valley, California), a company developing a line of minimally invasive, vascular suturing devices to suture the puncture created in arteries during open surgery and catheter-based procedures, reported it has signed an amendment to its existing agreements with Whitebox Advisors that extends repayment of certain of the secured convertible promissory notes issued to Whitebox by the company and defers the March 31 interest payments due under the notes until July 31.

Whitebox represents a group of funds that invested $16.55 million in Sutura in 2004 and 2005.

“The extension gives Sutura an opportunity to consider and explore alternative long-term capital structures for the company,“ said Anthony Nobles, president and CEO of Sutura. “It also enables us to pursue the optimum financing approach for Sutura's capital requirements over the next year.“

Under the new terms, the maturity dates on each of the Whitebox notes otherwise due on March 19, 2005, and on Sept. 6, 2006, was extended until July 1, 2007, and the per share exercise price of the warrants issued in connection with each of the financings was changed to 45 cents.

The amendment also provides that the interest rate on the Whitebox notes 8% per annum if the company raises $10 million or more in equity financing on or before July 31. If the company raises at least $10 million in capital on or before that date, but such capital consists of less than $10 million of equity financing, then the interest rates will be adjusted to 9% per annum. If the company fails to raise at least $10 million of capital by July 31, then the interest rates on the notes will be adjusted to 12% per annum.

In other financing news:

• Proteon Therapeutics (Kansas City, Missouri), a biotechnology company developing therapeutics to dilate human veins and arteries for use in vascular surgery and angioplasty, said it has raised $19 million in a Series A venture capital round. TVM Capital and Skyline Ventures co-led the investment, which also included Prism Venture Partners and Intersouth Partners.

As a result of the investment, TVM Capital general partner Stephen Hoffman, PhD, MD; Skyline Ventures partner David Lowe, PhD; and Prism Venture Partners principal Brendan O'Leary, PhD, have joined the Proteon board of directors.

The company's lead product, PRT-201, is designed to increase the success rate of vascular access surgery in patients needing hemodialysis. The company believes the product's unique combination of features is crucial for improving both the immediate and long-term success of hemodialysis access, bypass graft and angioplasty procedures.

• Senetek (Napa, California), a healthcare technologies company focused on developing and co-marketing products for the anti-aging markets worldwide, reported signing a definitive agreement under which it today retired its outstanding $3.3 million principal amount of senior secured notes.

Under the agreement with its note and warrant holders, Senetek prepaid the full principal amount of the notes plus accrued interest and Senetek canceled its outstanding Series A, B and D warrants to purchase 3 million, 3.3 million and 3.4 million Senetek shares, respectively, at purchase prices per share of $1.25, $1 and .40 cents, respectively, and issued to the holders a new series of warrants to purchase 3 million shares at a purchase price of 25 cents per share with the same expiration date as the cancelled warrants, March 4, 2011.

The company noted that in the absence of this agreement, all 9.7 million warrants would have remained outstanding after retirement of the notes and the exercise price of 2.65 million of the Series B warrants would have been reduced to 50 cents per share when the notes were prepaid.

The company also reported the signing of a two year, $1.5 million revolving credit agreement with Silicon Valley Bank. Senetek has also chosen Silicon Valley Bank as its primary financial services provider.

Senetek is a life sciences-driven product development and licensing company focused on the high growth market for dermatological and skincare products primarily addressing photoaging and age-related skin conditions.