A Medical Device Daily
Heartscape Technologies (Columbia, Maryland), a device company focused on the early diagnosis of heart attacks and ischemia, reported raising $3 million in Series A financing. In connection with the financing, Heartscape acquired assets pertaining to Prime ECG technology from Meridian Medical Technologies (Columbia, Maryland).
Radius Ventures led the round and was joined by Delta Partners and company management.
“Securing this round of financing from top medical device investors is a testament to our technology, business model and outstanding team,“ said Carl Rebert, president and a founder of Heartscape. “These funds have been earmarked primarily for sales and marketing and the commencement of a series of clinical trials aimed at further establishing the clinical utility of the Prime ECG system.“
“Heartscape's technology is a platform to address some of the most pressing needs in the management of chest pain patients, an area of critical importance to physicians, hospitals and patients,“ said Jordan Davis, managing partner of Radius Ventures and chairman of Heartscape. “In the management of heart attack victims, time is muscle, and rapid diagnosis can be the difference between life and death and clearly impacts a patient's long-term prognosis.“
“The PRIME ECG system has the potential to become the standard of care in the evaluation of chest pain patients in the emergency room setting,“ said Joey Mason of Delta. “We have closely followed the development of this important technology from its beginnings at the University of Ulster in Northern Ireland and are excited by the growing body of clinical evidence demonstrating the potential of Prime ECG technology in the early diagnosis of acute myocardial infarction.“
Heartscape is engaged in the development and marketing of the Prime Electrocartography System, FDA-cleared for diagnosing heart attacks and ischemia in the emergency room.
Radius is focused primarily on early-stage opportunities in the health and life sciences industry. It reports currently managing two funds with committed capital of about $100 million.
Delta Partners reports more than $150 million under management with more than 50 investments in the following sectors communications, Internet, software and life sciences.
In other financing activity, Caprius (Hackensack, New Jersey) reported completing a $3 million equity financing, consisting of the sale of 241,933 shares of newly-created Series D convertible preferred stock and warrants to two institutional investors.
The 241,933 shares of Series D preferred stock are convertible into 2,419,330 shares of common stock. Upon the conversion of the Series D preferred stock, the company will have outstanding 5,742,128 shares of common stock, without giving effect to existing options, warrants or other convertible securities. As part of the placement, Caprius granted to the investors 223,881 Series A warrants and 447,764 Series B warrants exercisable at $1.50 and $2 a share, respectively, for a period of five years. Prior to the placement, 3,322,798 shares of the company's common stock were outstanding.
George Aaron, president and CEO, said that the funds give the company the resources “to scale up our business as we roll out our economic and efficient on-site SteriMed Systems into the marketplace.“
A year ago, Caprius reported a $4.5 million equity financing consisting of the sale of 45,000 shares of newly created Series C preferred stock and warrants (Medical Device Daily, Feb. 22, 2005).
Caprius manufactures equipment for the on-site disinfection and disposal of infectious medical waste through its subsidiary, M.C.M. Environmental Technologies (also Hackensack).
Its SteriMed technology simultaneously shreds and disinfects solid and liquid regulated medical waste, reducing the volume by up to 90% and rendering it harmless for disposal as ordinary waste.
The MCM technology offers an alternative to hauling and incinerating medical waste. Caprius cites industry analysts who estimate the medical waste market to be about $3 billion in the U.S. and about $10 billion worldwide.
Carter Securities was the placement agent for this equity financing. A principal stockholder of the company, Special Situation Funds of New York, was one of the investors.