A Diagnostics & Imaging Week

XLR Medical (Point Roberts, Washington) reported that it has received notice that it will not be receiving $4.7 million in financing as previously disclosed in March.

At that time, the company reported that it had negotiated a $4.7 million convertible note financing with an investor based in New York. The company had reached a non-binding letter of intent with the investor that was subject to completion of a formal private placement agreement.

XLR had expected to use the proceeds of the financing to complete the acquisition of a roughly 51% interest in Exelar Medical (Chicago), to repay corporate debt and for general corporate purposes. Exelar Medical is developing cancer treatment technology using magnetic fields to focus the X-ray and electron beams used in external beam radiation. The technology is aimed at permitting an increase in the dosage of radiation to cancerous cells while decreasing the radiation exposure to healthy cells and the potential side effects.

XLR said that due to circumstances outside of its control, the investor has now provided notice that it will not be providing the company with any part of the expected financing. XLR said it intends to proceed with completion of the private placement of 8 million units at 40 cents per unit approved by the directors in September 2004 and will seek other alternative sources of financing.

The company also reported that it has now filed its annual report on Form 10-KSB for the year ended Jan. 31 and expects that the "e" will be removed from its trading symbol shortly.

In other financing news:

Bio-Rad Laboratories (Hercules, California), a manufacturer of life science research products and clinical diagnostics, reported completing its offer to exchange up to $200 million aggregate principal amount of its 6.125% senior subordinated notes due 2014 for all of its outstanding 6.125% senior subordinated notes due 2014 issued in a private placement. All of the $200 million of the private notes were tendered and received prior to expiration of the exchange offer at 5 p.m. EDT on May 31.

Bio-Rad serves more than 70,000 research and industry customers through a network of more than 30 subsidiary offices.

TriPath Imaging (Burlington, North Carolina) reported board approval of the accelerated vesting of stock options that were both unvested and "out-of-the-money" and held by current employees, officers and directors, with exercise prices greater than or equal to $8.89, 25 cents higher than the closing sales price of TriPath's common stock on the Nasdaq May 27. As a result, options to purchase about 660,000 shares of TriPath common stock have become fully vested, including about 440,000 options held by officers at vice president level and above and about 20,000 options held by non-employee directors. The company said that the vesting acceleration would reduce its aggregate compensation expense in future periods by about $2.7 million.

TriPath manufactures solutions for the clinical management of cancer, including detection, diagnosis, staging and treatment. Its TriPath Oncology subsidiary develops molecular diagnostic products for malignant melanoma and cancers of the cervix, breast, ovary and prostate.