A Medical Device Daily

Medical Home Products (MHP; St Petersburg, Florida), a provider of self-test kits, reported that its board of directors has approved a five-for-one forward stock split of the company's common shares.

The split will take effect on March 18. Each shareholder of record at the close of business on March 8 will receive four additional shares for every outstanding share held on the record date, and trading will begin on a split-adjusted basis on March 18.

Paul Mathis, president and CEO, said, “Our growth and success in the rapidly developing medical self-test and diabetes testing markets have resulted in significant increases in the valuation of the company by the financial community. Because we continue to add value to our company, a forward stock split was necessary.“

He added: “Many investors have expressed concern over the tight market that exists in the trading of our stock and it has disabled many investors from participating in our growth. Now those investors can purchase shares at a lower price and more easily.“

MHP is distributor of disposable medical products, such as home test kits, diagnostic devices and other medical items. The company distributes products over the Internet and through local distributors.

Healthaxis (Irving, Texas), a provider of integrated business process outsourcing claims and administration software solutions and services, has entered into a definitive agreement with Tak Investments, an investment company owned by Sharad Tak.

Tak Investments will invest up to $12.5 million in the company's common stock at a purchase price of $2.25 a share. The first $5 million of the investment will be provided at closing, and the remaining $7.5 million is subject to a callable warrant that may be exercised under certain conditions by the company for up to the full $7.5 million or by Tak Investments for up to $5 million.

Tak Investments also will receive two additional warrants representing the right to purchase additional common stock at prices of $2.70 and $3.15 per share. The number of shares of common stock subject to these warrants is dependent upon the amount ultimately invested under the callable warrant. The additional cash investment in the company under these warrants could reach $8.1 million.

As part of the agreement, Tak Investments will have the right to nominate two members to serve on the existing Healthaxis board of directors.

In addition, Healthaxis will enter into a five-year remote resourcing agreement with Healthcare BPO Partners, an entity also owned by Tak. The agreement provides the basis for Healthaxis to extend its operations into India, completing the company's overall strategy of having “best-shore“ operational capability for servicing its customers.

The Indian operations, based in Jaipur, will be dedicated exclusively for Healthaxis' use and will be managed by the company. The new operating center both supplements and extends the company's existing operations in Texas, Utah and Jamaica.

In other financing activity:

• Genesis HealthCare (GHC; Kennett Square, Pennsylvania) reported that its board of directors increased the aggregate size of its previously disclosed common stock repurchase program from $25 million to $50 million.

The shares of common stock may be repurchased under the program until December. As of Feb. 23, the company had applied roughly $700,000 to acquire shares of its common stock under the repurchase program.

GHC's board of directors also authorized the repurchase of a portion of GHC's 8% senior subordinated notes due 2013 commencing in March.

The common stock and note repurchases, if any, may take place at management's discretion and/or under pre-established, non-discretionary programs from time to time, depending on market conditions, in the open market, and in privately negotiated transactions, subject to any covenants or restrictions contained in the company's agreements governing its indebtedness.

GHC's board of directors also authorized the amendment and restatement of its existing senior credit facility. The existing senior credit facility provided for initial aggregate principal borrowings of $260 million, consisting of a $185 million term loan and a $75 million revolving credit facility.

As of Feb. 23, about $119.7 million was outstanding under the existing senior credit facility. The company intends for the amended and restated senior credit facility to provide for a $125 million revolving credit facility.

Genesis HealthCare is one of the nation's largest long-term care providers, with more than 200 skilled nursing centers and assisted living residences in 12 eastern states. It also supplies contract rehabilitation therapy to more than 650 healthcare providers in 21 states and the District of Columbia.

• Biophan (West Henrietta, New York) reported that it had closed a term sheet with what it characterized as “a major biomedical device company,“ but said that due to confidentiality agreements governing the transaction, it would not be announcing details until the transaction closes.

“We are very pleased with the transaction and its forward progress,“ said CEO Michael Weiner. “The agreement will be more than adequate to provide the capital needed to enable our listing on a major stock exchange. We are in the process of preparing our listing application.“

Biophan provides technology that is designed to enable implantable medical devices and interventional devices be used safely and effectively in conjunction with MRI, thereby enabling surgical procedures to be performed under real-time MRI guidance.