A Medical Device Daily
Curon Medical (Fremont, California) a company developing products for the treatment of gastrointestinal disorders, reported that it has received about $8.8 million previously held in escrow pending stockholder approval to issue and sell shares in a second closing of the PIPE financing that had its first closing on April 8 and April 19, 2005.
In this second closing, which required stockholder approval at its annual meeting held May 31, the company raised roughly $8.8 million by issuing a total of 13,482,464 shares of common stock at a price of .65 cents per share.
Investors received five-year warrants to purchase an aggregate of 7,145,715 shares of common stock at a price of $1 per share. The company previously received, on April 8 and April 19, $3.2 million from the proceeds of the first closing under the same terms and conditions. SVB Alliant and The Robins Group served as placement agents for the transaction.
Alistair McLaren, the company’s CFO, said the proceeds will be used primarily to fund its initiatives for its core business related to the use of radio frequency energy for the treatment of acid reflux with the Stretta system, and the treatment of bowel incontinence with the Secca system, in addition to other working capital needs
McLaren also noted that the company’s board of directors also approved an up to one-for-four reverse stock split.
“While we have no immediate plans to execute such a split, having stockholder authorization provides flexibility and additional options for us to act if future conditions warrant such action,” he said.
The Stretta system received FDA clearance in April 2000 for the treatment of gastroesophageal reflux disease. The Secca system for the treatment of bowel incontinence received clearance in March 2002.
Universal Health Services (King of Prussia, Pennsylvania) reported that its board has authorized an additional 3.5 million share repurchase to supplement the 84,000 shares remaining under previous authorizations. The board also approved management discretion to purchase its convertible debentures, due 2020.
UHS bills itself as “one of the nation’s largest hospital companies, operating acute care and behavioral health hospitals, ambulatory and radiation centers nationwide.” It also acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust.