NEWTOWN, Pa., June 25 /PRNewswire-FirstCall/ -- Patient Safety Technologies, Inc. (OTC Bulletin Board: PSTX) (the "Company") announced today the closing of a $6.0 million private placement financing. The new capital will primarily be used to fund working capital and the continued growth of the Company.
Additionally, Brian E. Stewart has been appointed as President, Chief Executive Officer and Board Member of the Company. Mr. Stewart is the co-founder of SurgiCount Medical, the Company's primary operating subsidiary, and co-inventor of the Safety-Sponge® System. Additionally, Mr. Stewart brings over 15 years of experience financing and advising both public and private companies in addition to his experience as VP Business Development of SurgiCount Medical. "I look forward to leading the Company at this exciting time. With an ever increasing customer base validating the effectiveness of the Safety-Sponge® System, top-tier supply chain partners and a strengthened balance sheet, I believe we are well positioned to become the standard of care for addressing one of the most common errors in surgery, retained surgical sponges," said Mr. Stewart.
Prior to the appointment of Mr. Stewart as CEO and Director, Messrs. Chase, McFarland, Bauer and Hitchcock resigned as Directors and Steven Kane resigned as a Director, President and Chief Executive Officer. The Board of Directors now consists of Brian Stewart, Wayne Lin, John Francis, Louis Glazer and Herbert Langsam.
In connection with the financing, certain of the stockholders who previously called for a special meeting of stockholders requesting the removal of certain directors have withdrawn such demand. As a result, under the Company's by-laws, the demand is no longer in effect.Additional details on the transaction will be provided in an upcoming Form 8-K filing with the Securities and Exchange Commission.