PLC Systems Inc. (OTCBB: PLCSF), a medical device company focused on innovative technologies for the cardiac and vascular markets, today reported that it has raised $4,040,000 in gross proceeds through the sale of 26,933,333 shares of common stock and common stock equivalents at a price of $0.15 per share and five-year warrants to purchase 26,933,333 shares of common stock at an exercise price of $0.20 per share. PLC Systems plans to use the proceeds from this financing to fund ongoing U.S. pivotal trials with RenalGuard® to prevent or reduce the onset of contrast-induced nephropathy (CIN) during imaging procedures, for investor and public relations, and for general corporate purposes.
GCP IV, LLC (“GCP”), the holder of $5.25 million in term notes issued by the Company between February 2011 and January 2013, has extended the maturity date of the first $4.0 million loan issued in February 2011 from February 2014 to June 30, 2015. The remaining $1.25 million in notes issued to GCP in 2012 and 2013 retain their original maturity dates of July 2, 2015 and January 17, 2016, respectively. As part of these prior debt financings, the Company issued GCP warrants to purchase 62,500,000 shares of common stock. Warrants to purchase 50,000,000 shares of common stock have now been re-priced to $0.098 per share, the number of shares issuable upon exercise of these warrants has been increased to 81,578,496, and the VWAP price of these warrants has been fixed at $0.155 per share. GCP has forfeited the remaining 12,500,000 warrants previously issued in 2012 and 2013.
Palladium Capital Advisors LLC served as the exclusive placement agent for the offering.
“CIN is a serious and sometimes deadly problem for patients undergoing certain imaging procedures, particularly for those with compromised kidneys, typically elderly and diabetic patients,” said Mark R. Tauscher, president and chief executive officer of PLC Systems. “These new funds will allow us to continue our pivotal trial with RenalGuard® and to hopefully accelerate patient enrollment into the study, along with providing us with additional working capital and funds to expand awareness of our efforts among potential investors.”
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