Jun. 23, 2015, 10:44 AM
- Investors react to the implied dilution of MELA Sciences' (MELA -24.7%) acquisition of PhotoMedex's XTRAC and VTRAC dermatology businesses for $42.5M in cash and the assumption of certain liabilities. MELA funded the deal by issuing senior secured notes and convertible debt to certain institutional investors in a private placement. The transaction includes warrants to purchase 3M shares of common stock at $0.75 per share and $32.5M principal amount of senior secured convertible debentures that are convertible into ~43.3M shares of common stock at $0.75 per share.
- XTRAC is an ultraviolet light excimer laser system. VTRAC is an ultraviolet excimer lamp system. Both businesses generated $30.6M in revenues in 2014, an increase of 41% from the prior year. Gross margin was 60.1%. As of March 2015, there were 640 XTRAC systems installed in the U.S. Over 300K XTRAC procedures were performed on ~19K patients in the U.S. last year.
MELA Sciences, Inc. is a medical device company, which has focused on the design, development and commercialization of non-invasive tools to provide additional information to dermatologists during melanoma skin examinations. Its flagship product MelaFind, which is a non-invasive, point-of-care... More
Industry: Medical Instruments & Supplies
Country: United States
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