A Medical Device Daily

PainCare Holdings (Orlando, Florida), a company delivering orthopedic rehabilitation, minimally invasive spine surgery and pain management solutions, reported entering into a purchase agreement with accredited investors with respect to the private placement of 3,305,033 shares of its common stock at $3.10 a share, for gross proceeds of about $10.25 million.

In addition, the private placement investors received warrants to purchase up to another 1,349,884 shares of common stock at $3.45 a share for 18 months after the closing of this transaction.

The warrants are redeemable by the company upon the occurrence of certain conditions.

The company said it will use proceeds from the financing for general corporate purposes and acquisitions.

First Albany Capital acted as exclusive placement agent for PainCare in connection with the financing.

Vascular Solutions (Minneapolis) reported that it has entered into an extension and expansion of its existing credit facility with Silicon Valley Bank, renewing the previous $5 million revolving line of credit and adding a $2 million equipment line of credit for 2006.

The borrowing base of the revolving line is a percentage of the company's eligible domestic receivables and inventory. The purpose of the revolving line of credit is for general working capital needs. The equipment line of credit is to finance equipment purchases, principally in the scale-up of the company's thrombin manufacturing operation.

“As we grow our sales and operations, we continue to view our relationship with Silicon Valley Bank as an integral part of our growth,“ said Howard Root, CEO of Vascular Solutions. “Even though we did not borrow on our line of credit in 2005, with our investment in the new source of thrombin and new products planned for 2006, we believe that renewing the line of credit and adding the equipment line is beneficial,“ he added.

Vascular Solutions develops solutions for unmet clinical opportunities within interventional radiology and interventional cardiology. New products introduced since the second half of 2003 include the Vari-Lase endovenous laser product line for the treatment of varicose veins, the D-Stat Dry hemostatic bandage for the rapid control of topical bleeding, the Pronto extraction catheter for the mechanical extraction of soft thrombus and the Langston dual lumen catheter for the measurement of aortic stenosis.

Other major products include the Duett sealing device to rapidly seal the puncture site following catheterization procedures and the D-Stat Flowable hemostat for the local management of active bleeding.