A Diagnostics & Imaging Week
DOBI Medical International (Mahwah, New Jersey) reported that it has completed a private placement with a group of institutional and other investors for 21 million shares of its common stock at a purchase price of 50 cents a share, for expected gross proceeds of $10.5 million and net proceeds of about $9,665,000.
Investors will also receive 5.25 million five-year warrants to purchase shares of common stock at an exercise price of 75 cents per share, and 5.25 million five-year warrants to purchase shares of common stock at an exercise price of $1.25.
After giving effect to the shares of common stock issued upon completion of the transaction, the company's issued and outstanding common shares total 65,257,155 shares.
DOBI said proceeds from the transaction will be used primarily to complete its clinical trial research study as the final step in its PMA application to the FDA for the ComfortScan breast imaging system. Additionally the proceeds will be used to support continuing product development and international sales and marketing efforts.
The company also reported that it has reduced the conversion price of its Series A preferred stock from $1.78 per share to $1.31 per share.
C.E. Unterberg, Towbin acted as the placement agent and Greenberg Traurig acted as counsel for DOBI in the offering.
DOBI is a microcap, development-stage, medical imaging company working to create a new means of improving the diagnosis of cancer through the detection of abnormal vascularization associated with tumors.
Calypte Biomedical (Pleasanton, California), a company focused on the development of diagnostic products for the detection of sexually transmitted diseases, reported raising $8 million by issuing secured 8% senior convertible notes, plus warrants in a private placement.
Calypte said it expects to use the proceeds from the sale of the notes primarily for continuing the commercialization of its rapid tests for HIV-1/2 diagnosis and for general working capital purposes.
The notes have a term of two years and are convertible into about 26.7 million shares of the company's common stock at 30 cents a share. After a period of 18 months and under certain conditions, the company can force the investors to convert any unconverted notes into shares of its common stock.
In conjunction with the notes, the company also issued to the investors five-year Series A warrants to purchase another 26.7 million shares of its common stock at $0.325 a share and five year Series B warrants to purchase 12 million shares of its common stock at $0.325 a share. Both series of warrants are exercisable after a period of six months.
The company also has the right to force the exercise of the Series B warrants under certain conditions, which could bring an additional $3.9 million.
The investors include Marr Technologies, Calypte's largest stockholder.
In other financing news: GeneOhm Sciences (San Diego), an emerging developer of molecular diagnostics, reported closing a follow-on Series C funding with Partners HealthCare System (Boston), an integrated healthcare system of advanced tertiary and community-based medical centers. The amount of the financing was not disclosed.
It joins a syndicate of investors providing funding to accelerate the commercialization of GeneOhm's portfolio of molecular diagnostic products for applications in a number of areas, including rapid detection of bacterial infection and antimicrobial resistance.
"We believe that GeneOhm's rapid, molecular diagnostic products can transform the practice and outcome of infection detection and control in a way that will make important improvements in health-economics and patient care," said Jean Moses, director of corporate development for Partners HealthCare.