A Medical Device Daily

Nanomix (Emeryville, California), a nanotechnology company commercializing a line of nanoelectronic detection devices for biomedical and industrial applications, reported the successful close of an oversubscribed $16 million round of funding.

The investment reflects the support of new investors Harris & Harris Group and STAR Ventures, as well as existing investors Alta Partners, Apax Partners, Sevin Rosen Funds and EnerTech Capital Partners.

Nanomix is focused on broad deployment of its Sensation detection technology, based on ultra-sensitive carbon nanotube networks. The sensors are treated with proprietary chemistries resulting in a wide variety of products that are applicable to markets such as environmental monitoring, respiratory diagnostics and biomolecule detection.

"The new round of funding will accelerate our commercialization of Sensation detection technology," said David Macdonald, president and CEO of Nanomix. "Our detection platform provides access to critical information not currently available."

Matritech (Newton, Massachusetts), a developer of proteomics-based diagnostic products, said it has entered into an agreement providing for a $12.55 million private placement for the sale of 1,426,124 shares of its Series A convertible preferred stock, each share of which is convertible into 10 shares of common stock, and five-year warrants to purchase 4,991,382 shares of common stock at an exercise price of $1.47 per share.

The first portion of the placement, involving $5.9 million in proceeds and resulting in sale of 670,272 shares of its Series A convertible preferred stock and all the warrants described above, has been closed. The second portion of the placement, for $6.65 million, is subject to stockholder approval.

Matritech's net proceeds from the first closing are about $5.4 million after deducting the estimated expenses and commissions in connection with the transaction. The company also has issued five-year placement agent warrants to purchase 670,284 shares of common stock at a price of $1.47 per share.

The private placement triggered the anti-dilution provisions in the company's 7.5% convertible debentures due March 31, 2006, and in the stock purchase warrants issued in connection with the convertible debentures financing. As a result, the convertible debentures are now convertible into an additional 869,623 shares of the company's common stock, and the March 2003 warrants may now be exercised at an exercise price of 88 cents per share.

The company said it intends to use the net proceeds from this private placement for research and development, working capital and general corporate purposes.

Matritech is using its proteomics technology to develop diagnostics for the detection of a variety of cancers. The company's first two products, the NMP22 Test Kit and NMP22 BladderChek Test, have been approved for the monitoring and diagnosis of bladder cancer.

In other financing activity:

• Micrus (Sunnyvale, California) reported that it has filed a registration statement with the Securities and Exchange Commission for a proposed initial public offering of its common stock.

William Blair & Co. and A.G. Edwards & Sons are acting as joint book-running managers and, together with Needham & Co., are acting as representatives of the underwriters.

Micrus is focused on the development of implantable and disposable medical devices used in the treatment of cerebral vascular diseases.

• Pluristem Life Systems (Haifa, Israel), a biotechnology company dedicated to the expansion of stem cells from umbilical cord blood to address a myriad of fatal illnesses, reported that it has completed private placements aggregating $3.2 million, to further its development efforts, expand the company's infrastructure and for working capital.

Terms will be set out in a Form 8-K to be filed with the Securities and Exchange Commission.

The company said the funds will be used to continue development of the company's stem cell expansion technology utilizing the PluriX bioreactor, increase the company's infrastructure to accommodate anticipated growth, make progress toward entry into clinical trials, and continue to explore synergistic strategic alliances.

• TomTec's (Munich, Germany) senior management reported the acquisition of outstanding shares held by ABN AMRO. With the acquisition of these shares, the company said that senior management demonstrated its confidence in TomTec's business strategy and the future growth of the company.

ABN AMRO joined TomTec Imaging Systems as a shareholder at the beginning of 2000. That cooperation enabled the company to further strengthen its position in medical ultrasound.

In 2004 ABN AMRO decided to change its portfolio of German investments. At that time, TomTec senior management started to negotiate the acquisition of outstanding shares and has now successfully completed those transactions.

"The four active shareholders of TomTec – Holger Frank, Bernhard Mumm, Frank Schlau and Ulrich Haupt – established their own investment company named mc2ap Beteiligungsgesellschaft mbH. The mc2ap Beteiligungsgesellschaft mbH did buy back the outstanding TomTec shares from ABN AMRO," said Haupt, TomTec's CEO and CFO."By completing this transaction, TomTec senior management holds nearly 80% of all TomTec shares. TomTec employees hold 2.65% [of the] shares, and the remainder of the shares [are] held by TomTec's Japanese partner, Nihon Kohden."

TomTec is a provider of medical solutions for ultrasound. The company's product line is applicable to the fields of adult and pediatric cardiology as well as obstetrics and gynecology, radiology and vascular.

• American Medical Systems Holdings (Minnetonka, Minnesota) said it received approval from its shareholders for an increase in authorized shares from 75 million to 200 million shares. On Jan. 10, the company's board of directors approved a two-for-one split of the company's common stock in the form of a 100% stock dividend. This split was, at the time disclosed, subject to shareholder approval of an increase in the number of authorized shares.

With this increase now approved, all shareholders of record on March 14 will receive one additional share for each share then held. Distribution of shares is scheduled to be made on March 21.

American Medical Systems is a diversified supplier of medical devices and procedures to cure erectile dysfunction, benign prostatic hyperplasia, incontinence and other pelvic disorders in men and women.