A Medical Device Daily

Cayenne Medical (Scottsdale, Arizona), a private sports medicine company, reported that it has closed a $15 million Series C financing.

The round was led by Investor Growth Capital (IGC). Other investors include SplitRock Partners, MB Venture Partners and a group of private individuals. With the financing, Stephen Campe, managing director of IGC, has joined Cayenne’s board.

Cayenne said that the new financing round brings its total private equity investment to $32 million.

Cayenne’s lead product, the AperFix System for ACL reconstruction, enables surgeons to perform a surgical procedure resulting in “total repair” of the ACL. The system, which the company said is intuitive to use and easy to teach, addresses limitations of other existing ACL reconstruction products.

“This successful round of financing will enable us to expand our sales and distribution footprint and further support the continued roll-out of our AperFix System,” said James Hart, president/CEO of Cayenne. “In addition, we remain committed to serving our growing physician customer base by developing and commercializing a full line of sports medicine products.”

Cayenne says it is defining new technology for the soft tissue reconstruction segment of the sports medicine market. The company was founded in 2005 and is focused on leading the transformation of traditional ACL repair procedures by applying advanced technology through minimally invasive techniques.

LMS Medical Systems (Montreal, Quebec), developer of the CALM clinical information system and risk management software for obstetrics, reported that it has closed a $2 million private placement.

The private placement comprised 4 million units at a purchase price of 50 cents per unit which generated $2 million in gross proceeds prior to the deduction of placement agent fees and offering related expenses. Each unit is comprised of one common share and a quarter warrant, each full warrant being exercisable for one common share at a strike price of 60 cents for a period of five years from the date of issue. Proceeds from the financing will be used for general working capital and for sales and marketing activities.

LMS is involved in the application of advanced mathematical modeling and neural networks for medical use. The LMS CALM Decision Support Suite provides physicians, nursing staff, risk managers and hospital administrators with clinical information systems and risk management tools designed to improve outcomes and patient care for mothers and their infants during childbirth.

In other financing news: ProUroCare Medical (Minneapolis) reported that on Feb. 28, it closed a private placement of $240,000 of units consisting of unsecured, subordinated, convertible promissory notes and common stock purchase warrants.

The net proceeds will be used to pay certain existing obligations and for general corporate purposes. Combined with its previous private placement closings since Dec. 27, 2007, the company said it has sold a total of $1.52 million of investment units to date, and has converted an additional $150,000 of debt into investment units.

At the closing, the company issued $228,000 in principal amount of notes, and warrants to purchase 30,000 shares (post-split) of common stock. The notes bear interest at 10% per year, mature on Aug. 13, 2009, and will convert into the type of equity securities offered by the company in any underwritten public offering prior to maturity at 70% of the public offering price. The Warrants will become exercisable upon the earlier of the closing of a public offering or the maturity date of the Notes, and will remain exercisable until December 31, 2012. The exercise price will be 50% of the public offering price, or in the event a public offering is not completed before the maturity date, at 50% of the closing price of the company’s common stock on the maturity date.

ProUroCare is developing mechanical imaging technology applications to improve detection and active surveillance of prostate disease.