Eyes on the Street
Weekly Update on PIPE and Reverse Merger News
May 15, 2012
PIPES, Financings and M&A
Mako Surgical Obtains $50mm Loan from Deerfield Managment
May 7 (NASDAQ: MAKO)--MAKO Surgical Corp. entered into a Facility Agreement with affiliates of Deerfield Management Company, L.P. (“Deerfield”), pursuant to which Deerfield agreed to loan the Company up to $50 million, which may be drawn down in $10 million increments at any time until May 15, 2013.
Any amounts drawn under the Facility Agreement accrue interest at a rate of 6.75% per annum. Accrued interest is payable quarterly in cash. The Company has the right to prepay any amounts owed without penalty. All principal amounts outstanding under the Facility Agreement are payable on the third anniversary of each draw. If no funds have been drawn under the Facility Agreement by May 15, 2013, then the Company is required to pay Deerfield a fee of $1.0 million.
Digital Domain Media Refinances Debt
May 8 (NASDAQ: DDMG)--Digital Domain Media Group, Inc. (the “Company”) entered into certain agreements with a group of institutional investors to enable the Company to retire and refinance its existing $27.4 million senior secured debt obligation owing to Comvest Capital II, L.P. (“Comvest”), which was otherwise due and payable by September 30, 2012. The Company also entered into a new agreement with Comvest, which includes a new subordinated convertible note replacing Comvest’s existing subordinated convertible note, effectively reducing a $16 million fixed repayment obligation that had been due under the original note as early as June 30, 2012 to an $8 million repayment obligation maturing in 2016.
Stereotaxis Raises $18.5mm
May 11 (NASDAQ: STXS)—The company has completed a private offering of common stock and private offering of unsecured, subordinated, convertible promissory debentures for gross proceeds of $18.5 million. Stereotaxis plans to use a portion of the net proceeds from the common stock offering to repay $7 million of the revolving Silicon Valley Bank (SVB) credit facility guaranteed by Alafi Capital and Sanderling Venture Partners.
Roomlinx Closes on $3mm FInancing
May 7 (OTCBB: RMLX)--Roomlinx, Inc., a developer of interactive TV applications for the hotel and resort industry, announced the closing of a $3.0 million private placement financing with institutional and other accredited investors. Pursuant to the securities purchase agreement, Roomlinx sold 1,200,000 shares of the Company's common stock at $2.50 per share and issued three-year warrants to purchase 600,000 shares of the Company's common stock at an exercise price of $3.75 per share.
Scio Diamond Raises $2.2mm
May 10 (OTCBB: SCIO)-- Scio Diamond Technology Corporation entered into subscription agreements for the purchase and sale of an aggregate of up to 2,750,000 Units with each Unit consisting of one share of its common stock, par value $0.001 per share and a Warrant to purchase one share of its common stock at $1.60 per share, for an aggregate purchase price of up to $2,200,000. The purchase price per Unit was $0.80. The first two Investments were consummated on May 4, 2012, resulting in gross proceeds to the Company of $550,000 and an issuance of 687,500 Units.
Cellceutix Completes $1mm Financing
May 10 (OTCBB:CTIX)--Cellceutix Corporation (OTC.BB: CTIX), a biopharmaceutical company, entered into a subscription agreement for Series A Convertible Preferred shares with an accredited investor for an aggregate of $1,000,000. Initial funding from the financing was $100,000 for the purchase 10,000 Series A Convertible Preferred Shares and was closed on May 8, 2012.
The proceeds will be used for expenses associated with the planned Phase I clinical trial for Kevetrin™, the Company's flagship anti-cancer compound.
Auxilio Obtains $2mm Line of Credit from Avidbank
May 9 (OTCBB: AUXO.OB)—Auxilio announced that Avidbank of Palo Alto, CA will fund a $2M line of credit for working capital purposes which will support its burgeoning growth in the U.S. health care industry.
Reverse Mergers and APOs
Office Products Company Completes Reverse Merger
May 10 (OTCBB: PGRD)—Shell company Progard Acquisition completed a reverse merger with Random Source, Inc., an on-line Business to Business wholesaler of brand name office products.
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