California-based Biolase (NSDQ:BIOL) announced today that it secured $12 million in a private placement funding round, even as the company weathers the internal tumult following the ouster of former CEO Federico Pignatelli.
Biolase raised the funds through commitments from Jack Schuler (of Crabtree Partners), Oracle Partners L.P. and other Oracle funds, Birchview Capital and certain Biolase directors and officers who bought an aggregate of nearly 6.3 million shares at $1.92 apiece, according to a press release.
The news sent BIOL shares up nearly 8.9% today, closing at $2.09.
Biolase plans to use the funds to pay off all its outstanding debt to Comerica Bank and to use the rest for general corporate purposes. The funding round closes tomorrow, Biolase said.
"This investment will help us accomplish our goal to expand Biolase’s global leadership position in superior laser technology across a select range of healthcare needs, while primarily focusing on improving the practice of dentistry," acting CEO Jeffrey Nugent said in prepared remarks.
Nugent took over the helm on an acting basis last month after a Delaware Supreme Court decision spurred Pignatelli’s resignation. Activist investor Oracle Partners had sought his removal, accusing Pignatelli of manipulating the company’s board of directors. Pignatelli has retained his seat on the board of directors, from which he has launched an investigation into his accusations of "wrongdoing, mismanagement and corporate governance failures" at Biolase.