A Diagnostics & Imaging Week

Spirus Medical (Stoughton, Massachusetts), a developer of diagnostic and therapeutic systems for gastroenterology, urology and gynecology, reported raising $5.9 million in a Series A preferred stock financing.

BioVentures Investors, Point Judith Capital and Village Ventures, along with a group of accredited individual investors, participated in the financing.

The company also reported receiving FDA 510(k) clearance for its first product line, the Endo-Ease endoluminal advancement system.

Endo-Ease says that its technology, in conjunction with a flexible endoscope, uses rotation to facilitate a gentler, more efficient approach to gastrointestinal endoscopy, while enhancing its diagnostic and therapeutic function.

"This funding provides us with the resources to begin manufacturing and commercialization of the Endo-Ease product line later this year," said Ross Garofalo, Spirus CFO.

Marc Goldberg of BioVentures Investors, Gina Raimondo of Point Judith Capital and Michael Benoit, an individual investor, will join Spirus co-founders Bob Ailinger, Jim Frassica, Steve Tallarida and Andrea Patisteas on its board.

Diagnostic kit maker Corgenix Medical (Westminster, Colorado) reported closing two private financing agreements with institutional and accredited investors for up to $3,363,500.

The first private placement transaction consists of $2 million in Series A convertible preferred stock, at $1 a share. The shares are convertible initially into 2.8571428571 shares of the company's common stock.

The $2 million in gross proceeds and preferred stock certificates have been placed in escrow and will be released to Corgenix upon a vote among shareholders to increase the company's authorized common shares to allow for the conversion of the preferred shares. Warrants to acquire up to 15 million additional common shares, at prices ranging from 40 cents to 60 cents a share for up to $7.5 million in additional cash proceeds, were provided to the investor in this equity transaction.

A second transaction, completed by Corgenix institutional investors, consists of $1.5 million in secured convertible term notes, due 2008. This transaction generated $1,363,500 in gross proceeds, the net amount received by the company. Warrants to acquire about 3.8 million shares of the company's common stock, at 23 cents a share, were provided to the investors.

Corgenix makes specialized diagnostic kits for immunology disorders, vascular diseases and bone and joint disorders.

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