CardioDynamics Raises $5 Million
CardioDynamicsInternational Corp. (San Diego), the manufacturer of BioZ noninvasive digital cardiac output monitoring systems, announced that on May 28 it completed a five-million-dollar private placement of common stock to institutional and accredited investors. This capital will be used to continue domestic and international sales and marketing expansion, fund research and development, and support ongoing clinical studies.
The financing was led by one million dollars in investments by the company's board members, officers, and customers. Other participants included Domain Associates, L.L.C., a Princeton, NJ-based venture capital group and Veritas Societe Generale, the company's largest institutional shareholder. Investors purchased the unregistered shares with a six-month holding restriction at one dollar per share, which represented a 27% discount to the closing bid price on May 28.
"We are very pleased with the overwhelming success of this financing despite the difficult investment environment for medical-device companies," stated Michael K. Perry, CardioDynamics' chief executive officer. "The response to this offering greatly exceeded our expectations and was significantly over-subscribed. We are encouraged by the continued support of our board and early investors and pleased to have Domain Associates involved in the further growth of the company. This is a very exciting time for CardioDynamics, having achieved five consecutive quarters of increased sales, mandated Medicare reimbursement approval for our products, and the recent announcement of excellent clinical results for the BioZ.com."
CardioDynamics, with headquarters in San Diego, is committed to changing the way hemodynamic monitoring is performed in healthcare. The company's primary products, the BioZ System, Portable BioZ, and BioZ.com utilize its proprietary Thoracic Electrical Bioimpedance (TEB) technology to noninvasively obtain data on a wide range of hemodynamic parameters. The worldwide market potential for the BioZ products is estimated to be four billion dollars, together with an additional $800 million in recurring annual revenue for disposables.