Message #14 From:
Stock News Bot Date: March 19, 2007 06:15:00 AM
CMPD News CompuMed, Inc. Enters into $2 Million Restricted Stock Private Placement
LOS ANGELES--(BUSINESS WIRE)--CompuMed, Inc. (OTCBB:CMPD) -- a medical informatics company leading the development of advanced imaging technology for cost-effective analysis and monitoring -- today announced it has closed a $2 million private placement consisting of 4,167 shares of Preferred Stock and warrants to purchase 4,166,500 shares of common stock. The warrants have an exercise price of $0.30 and expire on March 12, 2012. The shares of preferred stock will convert into 8,333,000 shares of common stock. The underlying stock is unregistered, which means it can’t be sold or transferred except under very limited circumstances for one year from the date of issuance. The investor will have board observation rights and the ability to appoint one director to the Company’s board of directors. The Company filed a Form 8-K with the Securities and Exchange Commission on March 16 with the terms of the agreements entered into by the investor and the Company. Bathgate Capital Partners, LLC acted as placement agent for the transaction.
“We are excited to bring in fresh capital from a long term institutional investor whose associates have significant experience executing growth strategies in our sector,” said CompuMed CEO Jerry McLaughlin. “The need for our products is compelling, and we now have the foundation to aggressively implement our strategic plan on a global basis.”
McLaughlin added, “We are proud to have earned the confidence demonstrated by the institution participating in this financing, and believe that their value to the Company will transcend funding to help us realize significant growth.”
CompuMed recently announced that in addition to organic growth, significant growth can be derived from the fragmentation in the medical imaging industry. Management believes that selected acquisitions can prove to be accretive, and accelerate revenue growth to position the Company as a market leader in remote monitoring and image analysis. Opportunities exist to rapidly expand the Company’s cardiac business in markets such as event monitoring, image analysis and over-reads. Efforts are underway to create a broader quantitative imaging and analysis platform by combining growth in its core ECG business with the evolution of its OsteoGram business. The result will be a broader quantitative imaging and analysis platform. This will afford the Company an opportunity to roll up a number of firms interested in leveraging CompuMed’s existing technology platforms and analytics.
The Company’s core products include the OsteoGram, which is an automated, computer-aided diagnostic (CAD) system for the rapid screening, diagnosis and monitoring of osteoporosis -- a disease that affects more than 200 million people worldwide. The DICOM OsteoGram was developed to take advantage of the growing market for digital, or filmless, x-ray equipment and networking systems. By residing on the workstations of these advanced digital systems, the OsteoGram software automatically captures and analyzes images directly from filmless x-ray or mammography equipment or the network. CompuMed licenses the DICOM OsteoGram software to manufacturers of digital x-ray, mammography and networking equipment for placement at the point-of-sale.
About CompuMed:
Founded in 1973, CompuMed, Inc. (CMPD.OB) is leading the development of advanced imaging and medical informatics solutions that provide cost-effective analysis and monitoring. CompuMed focuses on cardiovascular and musculoskeletal diseases, as well as other diseases associated with aging populations. Its unique expertise in telemonitoring, imaging and analysis facilitates the development of new solutions and services designed to improve healthcare provider workflow and patient care, while reducing costs. CompuMed's core products, the OsteoGram® and CardioGramTM systems, are cleared by the FDA and reimbursable by Medicare. The OsteoGram is an accurate and precise technology for osteoporosis testing. The underlying OsteoGram technology has significant cost advantages over other technologies and will be applied to a suite of value-added applications, such as following the progression of arthritic disease and diagnosing vertebral fractures and scoliosis. The CardioGram system is one of the first telecommunication networks designed to remotely interpret electrocardiograms, and is used by private practice, as well as government and corporate healthcare providers nationwide. The CardioGram delivers online electrocardiogram interpretations within two minutes of receipt, and has the additional capability to automatically provide an over-read (i.e., follow-up review) by a cardiologist. CompuMed is headquartered in Los Angeles. Visit CompuMed at www.compumed.net.
This release contains forward-looking statements, including, without limitation, statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, ability to raise capital, availability of appropriate acquisition candidates and/or business partnerships, economic conditions, impact of competition and pricing, capacity and supply constraints or difficulties, government regulation and other risks disclosed from time to time in our filings with the Securities and Exchange Commission. All such forward-looking statements, and whether made by or on behalf of CompuMed are expressly qualified by these cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, CompuMed disclaims any obligation to update or revise any statements in this release, whether as a result of new information, future events or otherwise, except as required by law.
