MINNEAPOLIS, Sept. 29 /PRNewswire-FirstCall/ -- ProUroCare
Medical Inc. (OTC Bulletin Board: PUMD), a provider of proprietary
imaging products, today announced the signing of an agreement for
$3.125 million in equity financing
with Seaside 88, LP of Juno Beach,
Fla. The proceeds of the financing will be used to
expand the company's product portfolio and to support scale-up
activities associated with final preparation, manufacturing and
eventual marketing of the ProUroScan™ prostate imaging system
following FDA clearance. The company's first product is
currently under review by the FDA as a "de novo" filing, and
a portion of this funding will be used to support operations during
the ongoing FDA review period. This funding brings the total
amount of money raised by ProUroCare since January 2007 to $13.9
million.
"We are very pleased to have Seaside 88, LP as a strategic
partner in support of our efforts to move the ProUroScan system
through FDA review and into active commercialization," said
ProUroCare CEO Rick Carlson.
"There are several activities required to prepare a product
for marketing following FDA clearance, and this funding will enable
us to move key programs forward while also interacting with the FDA
on the de novo submission. The data from our clinical
studies are very positive and support the potential value of this
product to visually document prostate abnormalities secondary to a
digital rectal examination."
The $3.125 million funding will be
provided in seven tranches. The first closing, completed upon
the signing of the agreement, provided $875,000 at a selling price of $0.625 per share. Subsequent closings are
scheduled to provide an additional $750,000 within 30 days following FDA clearance
of the ProUroScan system and then another $1.5 million provided in five subsequent closings
of $300,000 in 30-day increments.
At each closing, ProUroCare will sell unregistered shares of
its common stock to Seaside at a cost that is 50 percent of the
stock's volume weighted average selling price during the 10 trading
days preceding each closing date, subject to a floor selling price
of $1.25 per share below which
neither of the parties is obligated to close. The agreement
provides that the closing on any tranche will not occur if it would
cause Seaside to beneficially own more than 9.9 percent of
ProUroCare's common stock. They have indicated their
willingness to propose an alternative investment vehicle to provide
the financing, as they have in other transactions, should a
subsequent closing otherwise cause Seaside to exceed this ownership
level. After the first closing, Seaside holds approximately
8.9 percent of ProUroCare's outstanding stock.
"Seaside has demonstrated a longstanding commitment to small and
mid-cap companies, allowing them to concentrate on their core
competencies and market opportunities. Their track record of
successful investing lends support to the work that has been done
by our company in preparing the ProUroScan system for market," said
Carlson.
This transaction was facilitated by Lane Capital Markets of
Southport, Conn., which has been
engaged to provide ongoing, strategic fundraising and financial
advisory support to the company.
About ProUroCare Medical Inc.
ProUroCare Medical Inc. is a publicly traded company engaged in
the business of developing innovative medical imaging products. The
company's current focus is the ProUroScan prostate imaging system,
which is used to document abnormalities of the prostate detected by
a digital rectal examination.
Safe Harbor Statement
This news release contains certain
"forward-looking" statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These
statements are typically preceded by words such as "believes,"
"expects," "anticipates," "intends," "will," "may," "should," or
similar expressions. These forward-looking statements
are not guarantees of ProUroCare's future performance and involve a
number of risks and uncertainties that may cause actual results to
differ materially from the results discussed in these statements.
Factors that might cause ProUroCare's results to differ materially
from those expressed or implied by such forward looking
statements include, but are not limited to, the ability of
ProUroCare to find adequate financing to complete the development
of its products; the high level of secured and unsecured
debt incurred by ProUroCare; the impact and timing of actions taken
by the FDA and other regulatory agencies with respect to
ProUroCare's products and business; the dependence by
ProUroCare on third parties for the development and manufacture of
its products; and other risks and uncertainties detailed from time
to time in ProUroCare's filings with the Securities and Exchange
Commission including its most recently filed Form 10-K and
Form 10-Q. ProUroCare undertakes no duty to update
any of these forward-looking statements.
SOURCE ProUroCare Medical Inc.
Copyright . 29 PR Newswire
