Sunshine Heart (NSDQ:SSH) said today it raised $3.5 million in a direct offering to a single investor through the sale of convertible preferred stock.
The Eden Prairie, Minn.-based company said it floated 3,468 registered shares of Series B convertible preferred stock, which are convertible to a total of 3.7 million shares of common stock at a conversion price of 94¢. The warrants are exercisable for 36 months, the company said.
The company said it plans to use proceeds from the fund to support working capital and for general corporate purposes, according to an SEC filing from Sunshine Heart.
Northland Securities acted as the exclusive placement agent for the offering, which is expected to close on or around July 26.
Earlier this month, Sunshine Heart said it is looking at therapeutic strategies focused on neuromodulation rather than counterpulsation, touting the shift as a more cost effective strategy with a faster path to commercialization for its C-Pulse system.
The C-Pulse system is designed to use intra-aortic balloon counter-pulsation to reduce the load on the left ventricle, using a cuff around the exterior of the aorta designed to inflate and deflate in sync with the heart’s pulsation to augment cardiac function.
The shift came based off data from a clinical trial in which the Eden Prairie, Minn.-based company said it discovered that the primary mechanism which was providing a clinical benefit was neuromodulatory, caused by the counterpulsation balloon’s placement on the ascending aorta, as the device is activating baroreceptors with each expansion.
