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iSonea clinches $10.6m investment by U.S. institutional investor

iSonea (ASX: ISN), formerly KarmelSonix has raised up to $10.6 million in investment over a two year period from New York-based Bergen Global Opportunity Fund, LP.  

The deal will position Bergen as a cornerstone investor in iSonea, as it gears up for an OTC listing of its American Depositary Receipts (ADRs) in 2011.

Specifically, the deal is structured into two parallel instruments.  The first a AU$1 million lump sum investment by way of an unsecured convertible instrument on the execution of the agreement - with a face value of AU$1.12 million.

An investment of up to AU$9.6 million (of which AU$4.8 million is conditional on a mutual commitment) will follow over a period of 24 months, as Bergen’s payment for additional ordinary share issues over a 24 month period.

The Agreement also provides the company with the option to elect within a certain time after execution of the Agreement for Bergen to invest $200,000 - $400,000 monthly in the company over 24 months, with the company issuing ordinary shares to Bergen.

The agreement for the convertible instrument also provides for a grant of 25,000,000 options over ordinary shares to Bergen following execution of the arrangements.

Chief executive officer Michael Thomas said: “We are extremely pleased to secure this new funding from Bergen and we appreciate the flexibility that it will give us in launching our clinical development plans to establish ARM technology in the US market. This is a critical step toward growing and sustaining our revenue and providing an appropriate return for our shareholders.”

Jon Freudman, MD, medical director for the iSonea, said: “Advancing our clinical data set is our top priority for the coming year. This will drive adoption of our products and set the stage for converting the CPT codes to Category I. We are delighted to receive funding that will help the Company to attain these goals.”

iSonea is focused on supplying innovative, non-invasive Acoustic Respiratory Monitoring® devices and software for disease management of asthma and related pulmonary disorders.

Acoustic Respiratory Monitoring® is seen in the market place as a breakthrough in asthma management for patients of all ages, including the very young, very old and others who cannot perform currently available asthma assessment tests.