A Diagnostics & Imaging Week

TopSpin Medical (Tel Aviv, Israel) reported completing an initial public offering (IPO) on the Tel Aviv stock exchange, raising $8 million at a $35 million valuation.

Prior investors, including Pitango VC, Giza VC, Israel Seed Partners, Platinum and Johnson & Johnson Development Corp., participated in the IPO by increasing their previous investment in the company and purchasing $2.7 million out of the $8 million raised.

TopSpin reports that it has developed a technology platform that, for the first time, enables MRI to be conducted with no external magnets. It calls this development “a breakthrough in medical imaging as it enables the extension of MRI technology to a wide range of applications, in which conventional MRI is simply too bulky and expensive.”

The primary application developed by TopSpin is high-resolution imaging of coronary artery walls during cardiac catheterization by a single-use, intravascular MRI (IVMRI) catheter.

“Interventional cardiology is currently undergoing a revolution,” said Erez Golan, a physicist who is founder and CEO of TopSpin. “Research has shown that heart attacks .... are caused by vulnerable plaques: fatty pools in coronary artery walls, which can undergo rupture without prior warning, leading to occlusion of vital arteries. To date, it has not been possible to detect these plaques. TopSpin’s IVMRI catheter may allow these plaques to be detected, leading to drug treatment or intervention, such as placing a coronary stent, in order to prevent future heart attacks.”

TopSpin reported successful completion of its first-in-man clinical trial recently in four sites in Europe. It said that a second clinical study with “a more advanced protocol” has been initiated, bringing the number of patients enrolled to more than 50. The study is planned to expand into sites in the U.S., with expected completion by mid-2006.

Golan said: “Working with Poalim IBI, the lead underwriter in the offering, we found strong interest on the Tel Aviv market for the most promising medical device and biotech companies, a field in which Israel is unique. The $8 million raised will allow us to complete the development of our IVMRI catheter, while continuing with an extensive clinical plan, and to launch the device in Europe by the end of 2006 and in the U.S. by mid-2007.”

He added that the company is exploring expansion into other applications, such as urology and gastroenterology.

In other financing news:

• AMDL (Tustin, California), a developer of tests for the early detection of cancer and other serious diseases, reported that it has conducted the second closing of a combined Regulation D/Regulation S private offering of shares and warrants. The offering generated total gross proceeds of $1,007,000, exclusive of placement agent fees of $130,910.

The offering consisted of the sale of an aggregate of 3,163,591 shares of AMDL common stock, 2,093,750 shares at 32 cents a share and 1,069,841 shares at $0.315 a share, and three-year warrants to purchase an additional 1,256,250 shares of AMDL common stock at 49 cents a share and 641,905 shares of AMDL common stock at 44 cents a share, including warrants to purchase 316,359 shares issued to the placement agents.

• Intermagnetics General (Latham, New York) reported increasing its syndicated credit facility from $130 million to $200 million with expanded commitments from Wachovia Bank as principal agent, JP Morgan Chase, KeyBank and Comerica.

The company also reported that its board authorized resumption of a previously approved stock buyback program and has expanded it to repurchase up to a total of 2.5 million shares of common stock.

Intermagnetics said it would seek to utilize this authorization over the next two years.

Glenn Epstein, chairman and CEO of Intermagnetics, said the expanded line of credit offers more capital options, including additional acquisitions, adding: “The reactivation of our share buyback program clearly demonstrates the board’s commitment to our ongoing strategy to pursue all logical and direct avenues to create incremental value for our shareholders.”

Intermagnetics is focused on MRI technology development, as well as its expanding businesses within medical devices that encompass Invivo Diagnostic Imaging (focusing on MRI components and imaging sub-systems) and Invivo Patient Care (focusing on monitoring and other patient care devices).

• Microvision (Bothell, Washington), a developer of light-scanning technologies, said it has completed the private placement of 285,714 shares of common stock and warrants to purchase 64,373 shares of common stock for $1.5 million before issuance costs.

The warrants are exercisable for five years at an exercise price of $6.50 per share, subject to anti-dilution adjustment.

Microvision has agreed to register the shares of common stock sold as part of this transaction, and register the shares of common stock issuable upon exercise of the warrants for resale under the Securities Act of 1933, as amended.

Microvision is a developer of high-resolution displays and imaging systems based on the company’s silicon micro-mirror technology. The company said its technology has applications in a range of medical, military, industrial, professional and consumer products.

• Medtox Scientific (St. Paul, Minnesota) reported that the holders of warrants exercisable for an aggregate of 609,220 shares of the company’s common stock exercised such warrants prior to their expiration in July and August.

The company issued 405,514 shares of its common stock in July and 185,186 shares in August, upon exercise of such warrants. The remaining shares underlying the exercised warrants were issued in December 2004 and January 2005.

The company said it received $4,112,235 in proceeds from the exercise of the warrants, reflecting a $6.75 per share exercise price.

The warrants exercised were issued in August 2000. The company issued warrants exercisable for a total of 1,120,439 shares of its common stock at that time. Warrants exercisable for an aggregate of 511,219 shares expired in July or August without being exercised.

Medtox Scientific is a provider of specialized laboratory testing services and on-site, point-of-collection (POC) devices. The company also supports customers with logistics, data and program management services. Medtox provides esoteric laboratory testing services to hospitals and laboratories nationwide.

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