News this morning may explain the recent increase in volume. The following announcement has not been greeted with the response it may get upon further reflection. VASO must have plans in place to make good use of this financing:
Vasomedical Announces $3.5 Million Financing; Proceeds to Expand Marketing Programs
Business Wire - May 08, 1998 10:38
%VASOMEDICAL VASO %NEW-YORK %MEDICINE V%BW P%BW
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WESTBURY, N.Y.--(BW HealthWire)--May 8, 1998--Vasomedical Inc. (NASDAQ:VASO), announced that it has received $3.5 million to expand its marketing programs to increase awareness of the benefits of EECP(R) therapy among physicians, patients and insurers. This second tranche of financing from the same institutional investor from which the company received funds last year demonstrates the investor's confidence in the EECP(R) technology, its broad usefulness in the treatment of cardiovascular diseases and the company's long-term economic outlook.
Anthony Viscusi, president and CEO of Vasomedical, stated that "the increasing acceptance of the EECP(R) procedure as a scientifically validated option in the treatment of coronary artery disease and the increasing insurance reimbursement successes achieved by most current treatment centers around the country indicate that the market is ready to respond to a stepped-up marketing effort. The company has already doubled its sales force and the new funding will enable us to undertake specific marketing initiatives, including customer support programs to further increase patient recruitment and insurance reimbursement, as well as seeding programs in capitated HMO settings where EECP(R), as a noninvasive, outpatient therapy, has the potential to create considerable economic benefits because of the elimination of hospital days and the avoidance of other costs associated with invasive procedures."
The financing, consummated through the issuance of 5% Series C Convertible Preferred Stock, was facilitated by Wharton Capital, a New York-based financial consulting firm. |
