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 four 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 $750,000 within 30 days following FDA clearance of the ProUroScan system and $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 the scheduled closing will not occur.
"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.