A Medical Device Daily

Orthobiologics company IsoTis (Irvine, California) reported filing a registration statement with the Securities and Exchange Commission for a public offering of common stock.

Earlier this month, the company reported that it planned to issue additional shares in a transaction following its exchange offer, intending to raise $30 million-$40 million by offering newly issued NASDAQ-listed shares of its stock in a public offering (Medical Device Daily, Jan. 9, 2007).

The company's SEC filing is for a maximum aggregate offering valued at $45 million

The company reported that its stock began trading on the NASDAQ Global Market last week. The company's ticker symbol is ISOT.

Its listing follows the successful completion of the first acceptance period of an exchange offer through which it acquired 75% of the shares in IsoTis SA (Lausanne, Switzerland). With all conditions of the exchange offer as set forth in the offer memorandum fulfilled, IsoTis declared the exchange offer unconditional last Thursday.

The lead underwriter for the offering is Thomas Weisel Partners. William Blair & Co. is acting as co-manager.

In other financing news: Signalife (Greenville, South Carolina) reported that on Jan. 25, it procured a $10 million revolving credit facility from SES Capital, under which Signalife may draw advances over a five-year term to meet its cashflow requirements.

All advances are repayable in a balloon payment on Feb. 25, 2012, together with interest at 7% per year. Signalife said that it may, at its discretion, convert any principal and interest outstanding into common shares at a rate equal to $3.15 a share or, if greater, the fair market value of those shares on AMEX as of the date of a draw request.

As additional compensation for any conversion, Signa-life will issue SES Capital a five-year warrant entitling it to purchase a number of common shares equal to 25% of the shares received upon conversion at the same price as the conversion price.

Signalife also reported that its marketing agreement with Rubbermaid (Fairlawn, Ohio), under which Rubbermaid was granted the exclusive third-party right to market Signalife's Fidelity 100 heart monitor system, was terminated on Jan. 24, and that Signalife has filed suit against Rubbermaid for its failure to perform under that agreement.

Pamela Burnes, Signalife president/CEO, said: "The credit line Signalife has procured will ensure we have sufficient funding to bring our products to market. Signalife is actively selling our Fidelity 100 heart monitors and will continue to ramp up our sales efforts, including establishing relationships both internally and externally with sales and distribution partners."

Signalife is focused on the monitoring and detection of disease through continuous biomedical signal monitoring. It uses its technology to develop devices that simplify diagnostic testing and patient monitoring in the ambulatory setting.