Cardiovascular Systems to raise $15M in offering

Cardiovascular Systems ($CSII) wants to raise $15 million in a public offering, the Minnesota-based device company said, as it increases spending for a pivotal clinical trial.

To get there, plans call for selling 1.78 million shares of common stock at $9 each. The net cash comes after deducting all the expenses related to this sort of transaction. Plans call for closing the offering by May 25.

The company makes catheter systems and other products designed to relieve blocked arteries in the leg, to treat what is formerly known as peripheral artery disease, or PAD. In the first 9 months of Cardiovascular Systems' 2012 fiscal year (ending March 31), the company pulled in nearly $59.6 million in revenue, up from $57 million over the same 9 months in fiscal 2011. But net losses soared over that period, reaching more than $12.1 million, up from $8.6 million in the first 9 months of fiscal 2011.

Much of the loss increase (mostly in the third quarter) comes from higher operating expenses generated by the company's ORBIT II clinical trial, which is testing its Orbital catheter-based technology to treat PAD for a coronary indication. Complete patient enrollment for the trial is expected by the end of summer, after which Cardiovascular Systems will file a PMA application for the new indication.

As of March 31, the company said it had about $22.4 million in cash and equivalents on hand. 

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