Computer-aided detection (CAD) firm Medipattern plans to raise $3 million Canadian ($3 million U.S.) via a convertible notes offering financed through Ingalls & Snyder and Sebago Capital.
The notes will bear interest after December 31, 2011, on a semiannual basis, payable on March 31 and September 30 each year at the rate of 8% in 2012 and 16% in 2013, and maturing on December 31, 2013.
Medipattern expects the offering to close on March 4, 2011, subject to regulatory approval. Proceeds from the offering will be used to boost the company's operating working capital and market its Visualize:Vascular system, which was cleared for use by the U.S. Food and Drug Administration (FDA) last month.
In addition, the company reported second quarter and six-month results for fiscal 2011 (end-December 31, 2010).
Revenue for the second quarter increased 36%, from $16,000 Canadian ($16,000 U.S.) in 2010 to $22,000 Canadian ($23,000 U.S.) in 2011. For the first six months, the company's revenues increased from $18,000 Canadian ($18,000 U.S.) to $55,000 Canadian ($56,000 U.S.).
Net loss for the quarter decreased, however, to $595,000 Canadian ($611,000 U.S.), compared with $796,000 Canadian ($818,000 U.S.) for the same period last year. For the six-month period, net loss was $1.2 million Canadian ($1.2 million U.S.), compared with $1.5 million Canadian ($1.5 million U.S.) for the previous year, the company said.
