A Medical Device Daily

Xenomics (New York), a developer of diagnostic technologies for medical and life sciences applications, reported closing a private financing of $2.9 million.

The company said the proceeds would fund expansion of its research and commercialization of solutions in a range of medical and life science markets.

The private placement consists of about 1.47 million units for $1.95 a unit. Each unit consists of one share of common stock and a warrant to purchase one-quarter share of common stock. The warrants are exercisable at $2.95 a share at any time within five years.

Xenomics is developing a technology platform that uses urine, an easily obtained sample, rather than blood or tissue, to evaluate genetic markers of disease and medical conditions. This non-invasive strategy may provide various advantages over existing DNA testing methods, Xenomics said, including enhanced capabilities, ease of use and speed of testing and results.

Dr. Randy White, CEO of Xenomics, said, “We continue to conduct important research that may significantly improve healthcare and diagnostic testing options in a range of areas, such as prenatal testing for Down syndrome and other medical conditions.“

In other financing activity:

Select Medical (Mechanicsburg, Pennsylvania) reported that the consent solicitation commenced in connection with the cash tender offer to purchase any and all of the $175 million outstanding principal amount of its 9-1/2% senior subordinated notes due 2009 and the consent solicitation commenced in connection with the cash tender offer to purchase any and all of the $175 million outstanding principal amount of its 7-1/2% senior subordinated notes due 2013 both expired at 5 p.m. EST on Wednesday. In addition, the last day that holders of 9-1/2% notes or 7-1/2% notes could have withdrawn tendered notes and revoked delivered consents was as of the consent date. Any subsequent tenders of notes and deliveries of consents may not be withdrawn or revoked.

As of the consent date, Select had received the consent of holders of $175 million aggregate principal amount of the 7-1/2% notes and about $168.9 million aggregate principal amount of the 9-1/2% notes, representing 100% and about 97% of the respective total of the notes outstanding.

The company said it anticipates accepting tendered notes for purchase concurrently with closing of its previously announced merger with EGL Acquisition, an affiliate of Welsh, Carson, Anderson & Stowe IX. Select will hold a special meeting of its stockholders on Feb. 24 to vote on adoption of the merger. If approved, the merger will close “promptly thereafter,“ Select said.

Select Medical operates 99 long-term, acute-care hospitals in 26 states and four acute medical rehabilitation hospitals in New Jersey. It also operates outpatient rehabilitation clinics in the U.S. and Canada at 741 locations.

• Medical Home Products (St. Petersburg, Florida), which markets self-test kits over the web, that its board has approved a forward stock split of the company's common shares. The terms of the split will be released “in the weeks ahead,“ it said.

President and CEO Paul Mathis 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.“

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