A Medical Device Daily

Dermisonics (Irvine, California), a developer of injection-free ultrasonic transdermal drug-delivery technologies, said it would sell 7.2 million common shares of its stock to two Luxembourg-based SICAV funds for net proceeds of $4,134,240.

The company said it would use the proceeds to continue the development of its U-Strip, U-Wand and A-Wand systems, to explore applications for the company's intellectual property, and to negotiate marketing alliances in the cosmetic, pharmaceutical and antiseptic industries.

CEO Bruce Haglund said the financing provides the company the ability “to complete our human pilot trials for our insulin studies and accelerate our R&D and marketing programs“ on three fronts: the $17.6 billion skin care market and the anti-aging needs of graying baby boomers in the U.S. and Europe; the $19 billion drug delivery market targeting diabetics requiring the use of needles; and the $1.2 billion antiseptic market for the general public and wounded soldiers.

Dermisonics developing transdermal and subdermal technologies for applications in the drug, skin care and antiseptic fields. The U-Strip facilitates needle-free delivery of drugs with large molecular structures. The company also has developed major line extensions for applications in the medical (Antiseptic Wand) and skin care (U-Wand) fields.

Owens & Minor (Richmond, Virginia) reported launch of a cash tender offer for its outstanding $200 million principal amount of 8-1/2% senior subordinated notes, due 2011, and a related solicitation of consents to certain amendments to the indenture governing the notes.

The company will purchase the outstanding notes for a total consideration, per each $1,000 principal amount of notes, equal to the sum of the present value on the initial date of purchase of $1,042.50 (such amount equal to the amount payable on the notes on July 15, 2006, plus the present value of the interest that would be payable on the last interest payment date until the first call date, minus accrued and unpaid interest from the last interest payment date to the initial date of purchase).

Holders who tender their notes on or before 5 p.m. EST on April 3 will be eligible to receive the total consideration. Holders who tender their notes after the consent date and on or prior to 11:59 p.m. EST April 17 will be eligible to receive the tender consideration which equals the total consideration minus the consent payment of $30 per $1,000 principal amount of the notes. Owens & Minor said it would determine the price of the tender on the business day following the consent date.

The company said that consummation of the offer is dependent on receiving net a new debt financing.

Lehman Brothers is dealer manager and solicitation agent for the tender offer and the consent solicitation.

Owens & Minor is a national distributor of name-brand medical and surgical supplies and a healthcare supply chain management company.

In other financing news:

• Applied DNA Sciences (APDN; Stony Brook, New York) reported the sale of $1.5 million of 10% secured convertible promissory notes and warrants to purchase up to 3 million shares of its common stock in a private placement. Arjent, an affiliate of VC Arjent, served as placement agent.

APDN said it would use the proceeds for general corporate purposes, capital expenditures and potential acquisition of complementary companies or technologies.

APDN develops DNA-embedded security solutions that use plant DNA to verify authenticity and protect corporate and government agencies from counterfeiting, fraud, piracy, product diversion, identity theft and unauthorized intrusion into physical plant and databases.

Dr. James Hayward, CEO of Applied DNA, said, “We believe our technology is market ready for our near-term customers. APDN can help to provide DNA encryption and authentication technology solutions to address the need for product, brand and intellectual property protection.“

• Colorado Fund I (Boulder, Colorado) reported completion of a seed investment in TheraTogs (Telluride, Colorado), a provider of orthotic garments that assist children and adults with mobility or postural alignment problems, functional disabilities and neuromotor impairments due to cerebral palsy, ataxia or stroke. The fund has also committed to leading a Series A financing round for TheraTogs once it achieves certain financial and operational milestones.

The typical TheraTogs system consists of two undergarments - a sleeveless, foam-lined TankTop and a Hipster with two thigh cuffs - and elasticized straps of different widths, shapes and calibers of stiffness. Worn directly on the skin, TheraTogs provides joint compressions and a secure exterior skin on which clinicians or caretakers can attach elasticized straps.

TheraTogs represents the second investment by the Colorado Fund I, a venture capital fund created in 2005 to invest in seed-stage businesses in Colorado, with an emphasis on life science, information technology and retail companies. TheraTogs is the fund's first investment in a Colorado rural enterprise zone.

Mark Lupa, principal of Colorado Fund I, said, “It has been very exciting for us to find such a high level of innovation and quality located in rural San Miguel County.“

The company, currently with eight employees, introduced TheraTogs in 2002 as the only live-in, full-body orthotic system for neuromotor and postural training.

“The TheraTogs system . . . essentially makes it possible to take the therapist's hands home, so that the physical therapy can become a day-long experience,“ said company co-founder and CEO Lee Taylor.