A Medical Device Daily
The company is selling 11,365,000 shares in the offering and existing stockholders are selling 701,823 shares. The shares will be listed on the New York Stock Exchange under the symbol “MPW,” with the offering expected to close on Wednesday.
Friedman, Billings, Ramsey & Co. was the sole book-running manager and J.P. Morgan Securities was co-lead manager for the offering. Wachovia Capital Markets and Stifel, Nicolaus & Co. were co-managers for the offering.
Medical Properties Trust has granted to the underwriters an option to purchase up to an additional 1,810,023 shares of common stock to cover over-allotments.
A registration statement relating to the initial public offering of common stock was declared effective by the Securities and Exchange Commission on July 7.
Medical Properties is a self-advised real estate investment trust formed to acquire and develop net-leased healthcare facilities. These facilities include inpatient rehabilitation hospitals, long-term acute-care hospitals, regional and community hospitals, women’s and children’s hospitals, skilled nursing facilities, ambulatory surgery centers and other single-discipline healthcare facilities such as heart hospitals, orthopedic hospitals and cancer centers.
In other financing news:
• Biophan Technologies (West Henrietta, New York) has reported in an SEC Form 8-K/A filing further details of its technology licensing and equity agreements with Boston Scientific (Natick, Massachusetts), initially reported earlier this month (Medical Device Daily, July 6, 2005).
The technology license agreement has a number of provisions, including the granting of various rights to commercially implement a number of Biophan’s patented solutions to make implantable medical devices and surgical tools safe and/or image-compatible in MRI systems. The agreement grants Boston Scientific various exclusive and non-exclusive licenses, for certain products, to a number of Biophan’s proprietary technologies, plus sublicensing rights for the sale of commercial products that are based on the licensed technologies.
“We believe these agreements with Boston Scientific represent the next significant step toward the creation of medical devices that are MRI-safe and image-compatible,” said Biophan CEO Michael Weiner. “Through use of our proprietary technology, leading medical device manufacturers will have the ability to produce and market medical devices that offer critical advantages of MRI safety and MRI image compatibility. These agreements are an important milestone along that path.”
Boston Scientific is to pay Biophan an up-front license fee of $750,000, plus annual license maintenance fees, and also will make milestone payments for the launch of commercial products based on the licensed technologies. Biophan will receive royalties on the sale of products that employ the licensed technologies.
As reported, Boston Scientific also is acquiring $5 million of Biophan common stock, priced at a 10% premium over the average of the closing price for the 30-day period preceding the closing.
• HEI (Minneapolis) reported that it has entered into an amendment to its credit agreement with Beacon Bank calling for a continued maximum borrowing capacity of $5 million, subject to available accounts receivables, at an interest rate of prime plus 2.75% on funds borrowed and subject to a discount of .85% for processing. The facility is backed by HEI’s accounts receivable and is secured by inventory and general intangibles.
The term of the credit facility was extended to Sept. 1, 2006, and it is not subject to any restrictive financial covenants.
“We are pleased that Beacon Bank was willing to provide us these improved terms in recognition of our improved balance sheet and operating results,” said Mack Traynor, president and CEO. “These revised terms will reduce our borrowing costs as we work to continue to grow the company.”
HEI manufactures microelectronics, subsystems, systems, connectivity and software solutions for OEMs in the medical equipment and medical device, hearing, communications and industrial markets.
• Medical Services International (MSI; Edmonton, Alberta), maker of the VScan HIV test kit and other diagnostic products, reported signing an agreement with a U.S.-based investment fund, the Nutmeg Group, to provide it a minimum of $450,000 and up to $1 million. MSI said the agreement will give it the flexibility to attain its financial goals, fulfill existing sales commitments and expand its marketing and distribution.
With this capital infusion, the company said its Shanghai facility would immediately implement its marketing plan in China and Southeast Asia with the expectation of increasing orders and production “significantly.”
“Our investment and ongoing commitment is prompted by our extreme optimism about the outlook for Medical Services and its capacity to ramp up its operation to seize opportunities,” said Randall Goulding, managing director of the Nutmeg Group. “We plan to play a vital role in Medical Services International’s very promising future. In fact, the specific reason for this cash infusion is to focus on creating new business opportunities and joint ventures.”
The Nutmeg Group has joint-ventured with the company to facilitate Father George Clement’s endeavor to make available MSI’s VScan HIV test kits to the U.S. Virgin Islands in cooperation with local officials.
The VScan rapid test kit is a single-use, disposable, easy-to-use test for the screening of HIV 1 & 2, hepatitis B & C, tuberculosis, Dengue fever, West Nile virus, syphilis, malaria and prostate cancer.