News....is FDA approval a lay-up or what???
PLC Systems Inc. Secures First Round of $20 Million Financing
July 22, 1997 8:29 AM EDT
FRANKLIN, Mass., July 22 /PRNewswire/ -- PLC Systems Inc. (AMEX: PLC) today announced that the Company has secured, through Smith Barney, a $20 million financing commitment from funds advised by Brown Simpson Asset Management, LLC.
Under the terms of the financing, PLC has received $10 million from the issuance of convertible debentures due July 17, 2002, with a commitment to receive an additional $10 million at the option of the Company subject to certain conditions. The debentures are convertible into common shares under a predetermined formula that is based on the market price of PLC's Common Stock at the time of conversion. The convertible debentures will accrue interest at 5%, payable in cash or common stock at the time of conversion.
In connection with the transaction, PLC has issued to the funds a warrant to purchase 65,000 shares of its Common Stock at $27.97 per share. PLC Systems will file a registration statement for the necessary shares of Common Stock underlying the debentures and warrants relating to the first $10 million received.
"The Food and Drug Administration (FDA) advisory panel meeting review of The Heart Laser(TM) TMR System will take place on July 28, 1997," stated Dr. Robert Rudko, Chairman of PLC Systems Inc. "With this financing, PLC Systems has succeeded in raising capital to support the launch of The Heart Laser TMR System to the nearly 1,000 open-heart centers in the U.S. upon a potential FDA approval."
Dr. Rudko concluded, "The Company completed the financing in a short time frame without disrupting the day-to-day activities at PLC Systems as we prepare for the FDA advisory panel meeting, continue the sales and marketing efforts for The Heart Laser TMR System worldwide and maintain research and clinical programs to expand the potential markets for TMR."
PLC Systems Inc. is a cardiac revascularization company developing medical systems and technology with the potential to provide patients suffering from coronary artery disease a third alternative or adjunct to angioplasty and cardiac bypass surgery. PLC Medical Systems, Inc., a wholly owned subsidiary of PLC Systems Inc., has developed the CO2 Heart Laser which uses PLC's patented 'heart-synchronized pulsed laser' technology for a new cardiosurgical procedure known as Transmyocardial Revascularization (TMR). The Company has been granted expedited review of its PreMarket Approval (PMA) application for The Heart Laser(TM) TMR System to treat cardiac patients with medically refractory angina who are not candidates for angioplasty or bypass surgery.
NOTE: Certain of the above statements may be forward-looking statements that involve risks and uncertainties. In such instances, actual results could differ materially as a result of a variety of factors, including competitive developments, regulatory approval requirements and risk factors listed from time to time in the Company's SEC reports. SOURCE PLC Systems Inc.
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