Skin health company PhotoMedex grabs $40M in stock offering

PhotoMedex ($PHMD) recently closed a $40 million registered offering of common stock. The Montgomeryville, PA-based skin health device company says it will use the cash infusion to fuel product development, marketing initiatives and other activities.

Specifically, PhotoMedex offered more than 3 million shares of common stock at $13.23 per share. Net proceeds will be a bit smaller after the company deals with underwriting discounts, commissions and other expenses related to the offering, for which Canaccord Genuity acted as the sole book-running manager. Maxim Group LLC served as co-manager of the offering.

PhotoMedex was in the news earlier this year after receiving an FDA warning letter for various violations at its Montgomeryville plant involving "misbranded" or "adulterated" products. For example, the FDA determined that the company was not using "current good manufacturing practice requirements" for its GraftCyte moist dressings, Complex Cu3 intensive hydrating gel and its lamin hydrating gel.

PhotoMedex booked $132.1 million in revenue for fiscal 2011 and reported a $700,000 net loss, some of which can be attributed to costs related to its reverse merger with Radiancy. That company is now a PhotoMedex subsidiary. PhotoMedex will hold a conference call May 10 to discuss fiscal 2012 first-quarter earnings.

- read the release

ALSO: PhotoMedex said it intends to file for dual listing on the Tel-Aviv Stock Exchange.The company's shares will still be listed on the NASDAQ Global Select Market in the U.S. Release