A Medical Device Daily

ProMetic Life Sciences (Montreal) yesterday reported the closing of an $8 million financing. The company said it issued senior secured convertible notes in the amount of $10 million for aggregate proceeds of $8 million. The funds will be used for general corporate purposes.

During the first eight months following the closing, only one half of the principal amount of the notes will be convertible by their respective holders into subordinate voting shares at the conversion price of 27 cents. After that period, the outstanding principal amount of the notes will be convertible at the same conversion price. The term of the loan is 36 months and monthly reimbursements are due for payment from the ninth month. The company may repay this loan in part or in full at any time.

The company also issued to the investors warrants to purchase up to 18,434,065 subordinate voting shares at a price of 30 cents per share, for a term of five years.

T.R. Winston acted as sole placement agent and received a cash commission of $470,140 and an agent warrant to purchase up to 2,766,110 subordinate voting shares at a price of 30 cents a subordinate voting share. The broker warrant also has a term of five years.

ProMetic develops commercial applications derived from its Mimetic Ligand technology used in large-scale purification of biologics and the elimination of pathogens.

Axela Biosensors (Toronto) reported that it has completed what it termed a "significant" exclusive in-licensing agreement with Kimberly-Clark (Dallas). The agreement includes exclusive rights to about 150 world-wide patents and applications, as well as transfer of significant immunodiagnostics assay technology. As part of the agreement, Kimberly-Clark will also be acquiring an equity interest in Axela.

Financial terms of the agreement were not disclosed.

"These technologies are complementary to our current Diffractive Optics Technology [DOT] products planned for product launch in 2006," said Rocky Ganske, president and CEO of Axela Biosensors.

Axela is commercializing a biosensor platform that enables clinicians in diagnostic labs and first-line healthcare workers to rapidly quantify therapeutic and clinically relevant protein biomarkers in complex media without the need of fluorescent tags.

In other financing news: AMS Homecare (Vancouver, British Columbia) reported that it has received a C$500,000 loan for working capital from the Business Development Bank of Canada.

The loan, with net proceeds to be used for working capital purposes, is repayable at 17% per year over five years.

"This funding will help us continue growing the company and assist our 65PLUS US retail operation as well as pursuing our strategy of growing our technology and wholesale business," said CEO Harj Gill.

AMS sells mobility equipment, durable, disposable medical products and patient monitoring technology.