A Medical Device Daily
Recom Managed Systems (Los Angeles) reported the completion of private placement financing of $3 million with an institutional investor at $3.20 per share.
This is the second private placement reported by the company since April 1, bringing total new financing to $8 million. Recom also has issued warrants to purchase an additional 900,000 common shares at $1.60 per share.
The additional financing will also be used to support the bringing to market of Recom's Model 100 Heart Monitor 12-lead electrocardiograph (ECG) technology, which uses a patented signal-processing platform to allow for the production and recording of a clinical-quality ECG while the patient is ambulatory.
Recom is an emerging life sciences company focused on the monitoring and detection of disease through continuous biomedical signal monitoring. It uses its patented signal technology to design and develop medical devices that it said "simplify and reduce" the costs of diagnostic testing and patient monitoring in an ambulatory setting.
NJTC Venture Fund (Mount Laurel and Roseland, New Jersey), an $80 million early stage venture capital fund in-vesting in New Jersey area companies, reported its seed investment in Sword Diagnostics (Chester, New Jersey).
Sword is developing what it says is the first "real-time" diagnostic systems for rapid identification of organisms and pathogens.
Local angel investors, including the Jumpstart Angel Network, also participated in the financing.
Sword will initially focus on applications in the $1.6 billion food safety testing market, where it believes the rapid test segment will double over the next five years. The company said its diagnostic system offers the capability of identifying organisms and pathogens in a matter of minutes, whereas current tests require as much as 48 hours of pre-enrichment.
Dave Dingott, president of Sword Diagnostics, noted that the Centers for Disease Control and Prevention (Atlanta) estimates that every year there are 350,000 hospitalizations and thousands of deaths of the elderly, infants and immuno-compromised population relating to food-borne diseases.
"The NJTC Venture Fund team provides us with a great source of insight and experience as well as a strong network, which will assist in accelerating our growth strategy and contribute to a much safer food supply," said Dingott. "The proceeds of the Series A round will be used to continue the development of our technology for food safety applications."
NJTC Venture Fund industries of interest include communications, energy, information technology, healthcare/ life sciences and materials. It will invest between $250,000 and $5million per company.