Matritech Inc. has raised $3.7 million in a private placement of morethan 2 million units, made up of common stock and warrants, tocontinue development of the Cambridge, Mass., company's cancerdiagnostics and drugs.Each unit sold for $1.88 and consists of one share of common stockand one warrant, which can be redeemed in five years for one share ofcommon stock at $2.06.The private placement of 2,346,373 units raised a total of $4.4 million.Matritech received net proceeds of $3.7 million after expensesassociated with the offering.Matritech CEO Stephen Chubb said the company will use most of thefinancing to continue development of diagnostics for breast, colon andprostate cancer.The funding also will support Matritech's bladder cancer diagnostic.Clinical trials for the product are complete and Chubb said thecompany expects to file for FDA market approval this year. Inaddition, proceeds will be used for Matritech's cancer drug research.Following the private placement, Chubb said Matritech has about 9.5million shares outstanding, excluding the warrants. The company hasabout $5 million in cash and a burn rate of $350,000 a month. _Charles Craig
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