The $3.5 million came from 354 redeemable promissory notes priced at $10,000 per unit, according to a company statement. The money is being put towards “accelerating the commercialization of the Prolieve line of business and for working capital," Medifocus said.
“The completion of the 1st tranche of our $6 million private placement enables us to build upon and accelerate the tremendous progress we have made in rolling out our Prolieve product and positioning it at the forefront of the BPH market," president and CEO Dr. Augustine Cheung said in prepared remarks. "Since the acquisition of Prolieve in late July last year, we have tripled our Prolieve user sites from 60 to over 200. Given Prolieve’s proven success and the immediate market need for the treatment, we believe that this recent funding will allow us to significantly enhance our sales potential and move closer to break even."