MicroMed Technology, Inc. Announces Closing of $23 Million Series ``D'' Financing.
Business Editors, Health & Medical Writers
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HOUSTON--(BUSINESS WIRE)--Oct. 2, 2002
MicroMed Technology, Inc. announced today that it has raised $23 million in a private placement of its Series D Preferred Stock. Existing investors participating in the round included Essex Woodlands Health Ventures, Charterhouse Group International, Oxford BioScience Partners and Schroder Ventures Life Sciences. New investors participating in the round included Mitsui & Co. Venture Partners, C.E. Unterberg, Towbin Private Equity Partners II, and Datascope Corp. C.E. Unterberg Towbin, a New York based investment banking firm, also represented the company as placement agent for a portion of the financing.
The company plans to use the proceeds to fund the commercialization of its principal product, the DeBakey VAD(R), in Europe where the device has received CE Mark approval. Additionally, proceeds will go to fund clinical trials in the United States as a bridge to heart transplant and as an alternative to heart transplant for patients who are not eligible for a heart transplant, due to age or co-morbidity.
Along with this Series D financing, MicroMed expects to shortly close a $5 million bank line of credit to provide additional support in capital expenditures and distribution.
The DeBakey VAD(R), a miniaturized axial flow heart pump or ventricular assist device (VAD) is named after famed heart surgeon Michael E. DeBakey, Chancellor Emeritus of Baylor College of Medicine. The device was developed through a collaboration between Dr. DeBakey; Dr. George Noon, a Methodist Heart Center cardiovascular surgeon and Baylor professor of surgery; engineers at the National Aeronautics and Space Administration (NASA); and MicroMed Technology, Inc.
"It is particularly gratifying to have the continued support of our existing shareholders and we are excited to have new investors in this round," said Dallas Anderson, president and CEO of MicroMed. "We are very pleased to close this funding."
About the MicroMed DeBakey VAD(R)
The MicroMed DeBakey VAD(R) represents the next generation in heart assist devices: miniaturization. Weighing less than four ounces and measuring 1x 3 inches, it is approximately one-tenth the size of the heart-assist devices currently in commercial use. Silent, miniaturized, less expensive devices like the DeBakey VAD(R) also appeal to a broader range of patients.
