Ventripoint Diagnostics said today it raised $600,000 in a new private placement of 4 million units, as its Chinese joint venture with Shanghai YuTian Medical Investment Management launched.
The Canadian company said it floated the units at 15¢ apiece, with each consisting of 1 Ventripoint share and a 2-year, 1-share warrant redeemable at 30¢ per share, the company said.
The round also included a reduction in debt, as 2 subscribers agreed to accept units as payments for debt, which was reduced by $38,000, Ventripoint said. The proceeds are earmarked for development, sales and marketing as well as general working capital, the company said.
“This marks another major milestone for the company, which has developed the 1st system to measure functional and volumetric aspects of all 4 chambers of the heart using conventional 2D echocardiography. With this development, and the formation of the JV in China, we are now in a position to begin to place our VMS units in hospitals all across the globe and dramatically increase our current revenue base,” Ventripoint CEO Dr. George Adams said in prepared remarks.
The company’s new JV, operating under the Ma’anshan YuTian Medical Technology brand, recently launched in the city of Ma’anshan in the Anhui Province. Investors in the joint venture include Anhui Province Hi-Tech Venture Capital Investment Co and Ma’anshan Economic and Development Zone Venture Capital Investment Co.
Ventripoint said it the opening is a milestone in its agreement with Shanghai YuTian, and that it is “awaiting final documentation to verify this milestone has been achieved.”
Other steps in the agreement include future investments and shipping of components to china to begin fabrication of its Ventripoint Medical System. The company said it has received its 1st order for components to manufacture the units in China.
“I am very excited about this well-funded JV with major support from the Chinese government venture funds and look forward to updating our shareholders with the progress over the coming quarters. With this milestone achieved, we are looking at what should be an exciting year for the company,” Adams said.
Last December, Ventripoint pulled the trigger on a 1-for-10 reverse stock split and announced the installation of a VMS heart analysis system in a leading hospital in Shanghai, with a team of cardiologists trained to use the system to study patients as part of a research and evaluation program.