It seems like the financing window is cracking open a bit for life-sciences companies.
Two Philadelphia medical-device companies completed financings totaling more than $45 million this week.
Rosetta Genomics Ltd. raised gross proceeds of $27.5 million from a secondary public offering of 5.5 million shares. The company, with corporate headquarters in Israel and laboratories in West Philadelphia, said it plans to use the proceeds to fund its operations and for other purposes that could include working capital, acquisitions, research and development, and repayment of future debt.
Rosetta Genomics, which is trying to commercialize a line of microRNA-based molecular diagnostics, lost $8.83 million, or $17.40 per share, on revenues of $103,000 in 2011. Its shares closed Thursday at $4.32, down 32 cents or 6.9 percent.
Echo Therapeutics Inc., which moved its corporate headquarters to Center City from Franklin, Mass. in May 2011, will be able to borrow up to $20 million from Platinum-Montaur Life Sciences L.L.C., of New York. The company will use the debt financing to commercialize its Symphony needle-free glucose monitoring system.
Under the terms of the commitment letter, Echo can borrow up to $5 million at 10 percent interest per year. That credit facility will increase by up to $15 million based on Echo attaining certain regulatory and clinical study milestones.
In addition, Echo will issue to the firm known as Montaur 4 million warrants that carry an exercise price of $2 per share over the next five years as well as 1 million five-year warrants for each $1 million borrowed. (The exercise price of those warrants, which depends on the market price of Echo stock when the company borrows funds, would range from $2 to $4.)
Echo tapped Montaur for previous financings in 2011. According to Echo's most recent proxy statement, Montaur owned 5.97 million shares, or 9.99 percent of the company's outstanding shares, as of April 13.
Echo lost $16.72 million, or 49 cents per share, on total revenues of $447,211 in 2011. Shares closed Thursday at $1.54, up 9 cents or 6.2 percent.