A Medical Device Daily
China Medical Technologies (Beijing) reported the pricing of its public offerings of $240 million aggregate principal amount of convertible senior notes due 2013 and up to 4,700,000 American Depositary Shares (ADSs), which are being purchased by affiliates of the underwriters of the notes offering pursuant to ADS issuance and repurchase agreements with the company.
The notes offering was increased from its initial announced size of $150 million aggregate principal amount of notes. China Medical also has granted the underwriters of the notes offering an option to purchase up to an additional $36 million principal amount of notes to cover over-allotments.
The notes will pay interest semi-annually at the annual rate of 4%, and mature on Aug. 15, 2013. At any time until 5:00 p.m., EDT, on the business day immediately preceding the maturity date, the holders of notes may convert all or a portion of their notes into ADSs, based on an initial conversion rate of 17.0068 ADSs per $1,000 principal amount of notes, which represents an initial conversion price of about $58.80 per ADS.
The initial conversion price is a 22.5% premium to the offer price of $48 of the purchased ADSs initially offered by the concurrent offering. The closing sale price of the company's ADSs on Aug. 12 was $49.66 per ADS. The initial conversion rate, and thus the initial conversion price, will be subject to adjustment under certain circumstances.
The net proceeds of the notes offering, after deducting underwriting discounts and offering expenses, will be roughly $232.8 million (or about $267.7 million if the underwriters exercise their option to purchase additional notes in full).
The company said it intends to use these net proceeds for general corporate purposes and for the acquisitions of businesses, products and technologies that China Medical believes will complement its existing business.
In other financing news:
BrainsGate (Caesarea, Israel), a developer of a therapeutic platform technology based on electrical neurostimulation of the Spheno-Palatine Ganglion, reported the completion of a $27.5 million Series C financing round in which both new and existing investors participated.
Johnson & Johnson Development led the round, joined by VC-Fund Agate Medical Investments, headed by former Israeli Minister of Health Danny Naveh. Existing investors who also participated in the current round included Elron Electronic Industries (Tel Aviv), Pitango Venture Capital, MB Venture Capital and Alice Lab.
Illumina (San Diego) reported that the underwriter of the public offering of the company's common stock fully exercised its option to purchase up to 525,000 additional shares. A total of 4,025,000 shares were sold to the public at a public offering price of $87.50 per share, raising net proceeds to the company of approximately $342.6 million, after deducting underwriting discounts and commissions and estimated offering expenses.
Goldman, Sachs & Co. was the manager of the offering.
PatientKeeper (Boston), a developer of physician information systems, said that it has closed a $7.5 million round of funding. The round was led by new investor Flybridge Capital Partners and included existing leading healthcare investors Frazier Healthcare Ventures, New Enterprise Associates and Whitney & Co.
The funding will be used to increase the company's investment in research and development and support expanded operations as it continues to grow at a rapid pace.