Sunshine Heart (NSDQ:SSH) said today it raised $3.8 million in a new offering with a “healthcare dedicated institutional investor” to support its Aquadex product line.
The Eden Prairie, Minn.-based company said it inked a definitive agreement looking to float 2,900 registered shares of Series C convertible preferred stock.
The shares of Series C convertible preferred stock are convertible for a total of 17 million shares of common stock at a price of 17¢ per share.
Sunshine Heart said that, concurrent with the private placement, it is issuing 900 unregistered Series D convertible preferred stock shares, convertible to a total of 5.3 million shares of common stock at 17¢ per share, according to a press release.
Investors in the private placement will also receive warrants to purchase up to an additional 22.4 million common shares at 18¢ per share.
Proceeds from the offering are slated to support working capital needs for the Aquadex product line it acquired from Baxter (NYSE:BAX) for $5 million in August this year, and to support general corporate purposes, the company said.
Northland Securities acted as the exclusive placement agent for the offering, the company said.
Last week, Sunshine Heart said it will realign its strategy to focus on its recently acquired Aquadex FlexFlow system, designed to filter water and salt from patients with fluid overload due to renal failure.
