Mississauga, Ontario-based Profound, which developed the Tulsa-Pro MR-guided prostate ablation device, said it sold a total of 9.1 million units at 83¢ (C$1.10) apiece to Canaccord Genuity and Echelon Wealth Partners for gross proceeds of about $7.5 million (C$10 million). Each unit consists of a stock share and half of a two-year warrant at a $1.55 exercise price.
The placement, which is slated to close Sept. 20, also includes a 30-day over-allotment for another 15%, or 1.4 million, of the units, Profound said. The company plans to use the net proceeds to cover a reimbursement study and a Tulsa-Pro clinical trial, building out its sales & marketing infrastructure, R&D and other general corporate purposes.
Tulsa-Pro received FDA 510(k) clearance last month and has also obtained CE Mark approval in Europe.
The company is also commercializing the Sonalleve device for ablation of uterine fibroids and bone metastases. Sonalleve has CE Mark and China Food & Drug Administration approvals.
Shares of PRN were down -1.8% to C$1.08 per share today in mid-day trading.
$1 = C$1.32483