A Medical Device Daily
Stereotaxis (St. Louis) reported it has entered into definitive agreements with new and existing institutional investors to raise gross proceeds of $20 million through the sale of common stock and warrants in two separate concurrent transactions.
A portion of the warrants sold will expire in six months. If exercised in full, these warrants would provide an additional $10 million in gross proceeds from the sale of common stock at a price of $4.65 per share.
In one transaction, affiliates of Sanderling Venture Partners (San Mateo, California) and Alafi Capital (Berkeley, California) have entered into a definitive agreement to purchase an aggregate of 2,024,260 shares of common stock, par value $0.001 per share and warrants to purchase up to 4,859,504 shares of common stock for a purchase price of nearly $4.94 per unit, in a registered direct offering for gross proceeds of $10 million, before deducting estimated offering expenses.
The warrants are exercisable at $4.64 per share, are exercisable on or after the date immediately following the six month anniversary of their issuance and have a five-year term from that initial exercisability date.
Affiliates of Sanderling Venture Partners and Alafi Capital are existing shareholders of the company and members of its board of directors.
Separately, Stereotaxis has entered into a definitive agreement with selected institutional investors to sell 2,389,877 shares of the common stock and warrants to purchase up to 4,623,971 shares of the common stock at the negotiated price of $4.18 per unit, in a registered direct offering for gross proceeds of nearly $10 million, before deducting placement agent fees and estimated offering expenses. Warrants to purchase up to 2,831,563 shares expire prior to June 30, 2009.
Of these warrants, 2,148,739 have an exercise price of $4.65 per share, and the remaining 682,824 have an exercise price of $.001 per share and are exercisable conditioned on the trading price of the common stock during certain periods ending prior to May 30, 2009.
The closing of these offerings is expected to take place on or about Dec. 30, subject to the satisfaction of customary closing conditions. Deutsche Bank Securities served as the sole placement agent for the institutional investor offering.
In connection with these transactions, the company and the Affiliates have agreed to amend their prior $20 million loan commitment to provide for extension of $10 million of this commitment through March 31, 2010, if exercised by the company, in exchange for additional warrant coverage.
The company now intends to use the net proceeds from these offering for working capital and other general corporate purposes.
Stereotaxis manufactures an advanced cardiology instrument control system for use in a hospital's interventional surgical suite to enhance the treatment of coronary artery disease and arrhythmias.