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Sunrise Technologies International Inc. Successfully Completes Initial Closing of $5.9 Million
Tuesday, January 13 6:59 AM ET
FREMONT, Calif. (BW HealthWire) - Sunrise Technologies International Inc.(OTC:SNRS) today announced the initial closing of a private placement convertible note and warrant offering in the amount of $5.9 million.
According to C. Russell Trenary III, president and CEO, "We are extremely pleased to have this magnitude of investment come into Sunrise at this stage. It signals investors' faith in our technology, our market place, and our management team, and it represents enough money to carry us well into 1999.
"By that time we plan to have filed our PMA (pre-market approval) application for the treatment of hyperopia with the FDA. The money from these investors will be used to complete the final phase of our hyperopia clinical trial and for continuation of our clinical trials for treating presbyopia for which we received approvals from the FDA in the fourth quarter of 1997.
"Additionally, we have exciting new product development work that requires continued investment as well as funding requirements for sales/marketing and general corporate purposes. We are now beginning the planning process for an aggressive launch of our Corneal Shaping System for hyperopia in the USA."
Timothy A. Marcotte, vice president, finance and chief financial officer explains, "This financing is far less dilutive than previous efforts at Sunrise and it is largely funded by ophthalmic surgeons who are new investors or have substantially increased their holdings since the new management team assumed leadership.
"This offering is a 12% payment-in-kind convertible note allowing the company to convert interest payments into equity instead of cash, and the notes mature in January, 2001. Investors in this private placement receive one warrant for each five dollars ($5.00) of notes. The warrants expire in five years and have an exercise price of three dollars ($3.00) per share, which is also the conversion price on the notes.
"The company has the sole option to extend the maturity of the notes for an additional 24 months in return for additional warrants of one warrant for each five dollars ($5.00) of debt with the warrants priced at the then fair market value."
According to Alan B. Aker, M.D., of the Aker-Kasten Cataract & Laser Institute of Boca Raton, Florida and past-president of the American College of Eye Surgeons, "The fact that this funding has come from nationally respected ophthalmic surgeons is indicative of the promising clinical results and the positive patient response to this laser application in the correction of hyperopia.
"The ongoing study has demonstrated that the hyperopic patient is much more dissatisfied with his refractive condition than the myope and, as a consequence, I anticipate a tremendous demand for this procedure once approved."
The company did not require the assistance of a placement agent in raising these funds. Holleb & Coff of Chicago, IL., acted as counsel to the company in connection with this offering.
Founded in 1987 the company produces and markets high technology products revolutionizing treatment methods in eye care. The company develops Holmium laser-based systems which utilize a patented process for shrinking collagen developed by Dr. Bruce Sand (the "Sand Process") in correcting ophthalmic conditions.
Its CorneaSparing LTK(TM) System(1) is a non-contact simultaneous application for correction of hyperopia (farsightedness), presbyopia (loss of focus due to natural aging), and overcorrection resulting from PRK and LASIK treatments for myopia. The system is currently in use in Europe and the Americas, and is in FDA clinical trials in the United States.
Except for historical information, this news release contains certain forward-looking statements that involve risk and uncertainties which may cause actual results to differ materially from the statements made, including market potential, regulatory clearances, business growth, and other risks listed from time to time in the company's Securities and Exchange Commission (SEC) filings. These forward-looking statements represent the company's judgment, as of the date of this release, and the company disclaims any intent or obligation to update these forward-looking statements.
Internet users can access Sunrise's World Wide Web site at sunrise-tech.com .
(1)Caution--Investigational Device: Federal law restricts this device to investigational use in the U.S.
Contact: Sunrise Technologies International Susan Lorigan, 510/623-9001
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