Profound Medical yesterday said it’s slated to hit the public markets in Canada after a reverse merger, also revealing a $24 million private placement to fuel clinical trial work.
The proceeds will help support Profound Medical’s 110-patient pivotal trial of the Tulsa-Pro MRI-guided ultrasound ablation device to treat prostate cancer.
Profound shares are due to trade on the Toronto Stock Exchange once the reverse merger with Mira IV Acquisition Corp (TSXV:MRY.P) is consummated, Profound said. The deal calls for Profound to become a Mira subsidiary, then Mira to take the Profound Medical Corp. name.
The private placement was led by GMP Securities and Cornmark Securities, with contributions from Bloom Burton & Co. and Mackie Research Capital Corp., Profound said.
The company said it also secured a $4 million loan from Kinight Therapeutics, with payments deferred until June 30, 2017. As part of that deal, Knight will distribute Tulsa-Pro exclusively for 10 years in return for a 4% equity stake in Profound.
"This financing transaction, in conjunction with the contemplated Mira transaction, is a highlight of a transformational year and brings the company one step closer to making a significant difference in the future of men’s prostate health," CEO Steve Plymale said in prepared remarks. "We appreciate the interest and confidence that the investment community has in our technology."
Initial testing of the Tulsa Pro technology began in mid-2013, when Profound gained Canadian regulatory approval to test the device in 30 patients.