|The MelaFind system aids in diagnosing melanoma.--Courtesy of Mela Sciences|
Investors are charging to the rescue of melanoma diagnostic device company Mela Sciences ($MELA). Just a few weeks ago, company shares languished below the $1 minimum NASDAQ share price. To keep its listing, Mela did a one-for-10 reverse stock split a few weeks ago and now investors have infused the company with $27.3 million in a new financing.
The company expects the financing will give it the traction it needs to secure reimbursement and complete further clinical work on its MelaFind system that is approved in the U.S. and EU to aid in dermatologist diagnosis of melanoma.
"We are extremely excited to have raised the capital resources that will allow us to continue our progress towards obtaining CMS reimbursement and completing the MelaFind Real-World clinical study," Mela Sciences President and CEO Rose Crane said in a statement. The company expects to release preliminary results from the study by yearend.
The financing included a combination of $15 million in debt and $12.3 million in equity. The stock sale included warrants for the investors to purchase about 11.2 million at a $2.45 per share price.
H.C. Wainwright & Co. was the placement agent for the financing, which included dedicated healthcare investors Sabby Management, Broadfin Capital and Great Point Partners.
The troubled company relaunched MelaFind in January with an initial $12.5 million cash infusion. It's the only medical device with a PMA and CE Mark to assist in melanoma diagnosis at its most curable stage, according to the company. The device uses 3-D optical imaging to extract data from 2.5 mm below the skin's surface for ambiguous pigmented moles and analyzes them. FDA approved MelaFind in 2011.
- more detailed financing terms are in the release