MONTGOMERYVILLE, Pa., Nov. 1 /PRNewswire-FirstCall/ -- PhotoMedex, Inc.
(Nasdaq: PHMD) today announced that it has entered into a definitive
agreement with institutional investors for the private placement of
approximately 9.8 million shares of common stock at a price of $1.17 per
share, together with warrants to purchase approximately 2.4 million shares
of common stock at an exercise price of $1.60 per share. Gross proceeds
from the private placement will be approximately $11.4 million. The private
placement is expected to close on or before November 2, 2006 and is subject
to certain closing conditions.
Cowen and Company, LLC, acted as the sole placement agent for this
offering. PhotoMedex President and CEO Jeff O'Donnell said that the Company
intends to use the proceeds from the placement for general working capital
purposes. "We now have the working capital to increase the size of our
sales force and accelerate our launch of the XTRAC(R) laser system. In
addition, we plan on expanding our surgical services business to take
advantage of a national laser services contract."
Pursuant to an agreement with the investors, the Company is required to
file a registration statement with the U.S. Securities and Exchange
Commission covering the resale of the shares of common stock to be issued
to the investors as well as the shares of common stock issuable upon
exercise of the warrants, subject to certain terms and conditions.
The securities offered in the private placement were not registered
under the Securities Act of 1933, as amended (the "Act") or any state
securities laws, and may not be offered or sold in the United States absent
registration, or an applicable exemption from registration, under the Act
and applicable state securities laws.
PhotoMedex is engaged in the development of proprietary excimer laser
and fiber optic systems and techniques directed toward dermatological
applications, with FDA approval to market the XTRAC(R) laser system for the
treatment of psoriasis, vitiligo, atopic dermatitis and leukoderma. In
addition, the Company provides contract medical procedures to hospitals,
surgi-centers and doctors' offices, offering a wide range of products and
services across multiple specialty areas, including dermatology, urology,
gynecology, orthopedics, and other surgical specialties. The Company is a
leader in the development, manufacturing and marketing of medical laser
products and services. In addition, as a result of the merger with ProCyte,
PhotoMedex now develops and markets products based on its patented,
clinically proven Copper Peptide technology for skin health, hair care and
wound care. PhotoMedex sells directly to dermatologists, plastic and
cosmetic surgeons, spas and salons and through licenses with strategic
partners into the consumer market, including a long-term worldwide license
agreement with Neutrogena(R), a Johnson & Johnson company. ProCyte brands
include Neova(R), Ti-Silc(R), VitalCopper(R), Simple Solutions(R) and
Some portions of this release, particularly those describing
PhotoMedex' strategies contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1993, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. While
PhotoMedex is working to achieve those goals, actual results could differ
materially from those projected in the forward-looking statements as a
result of a number of factors, including difficulties in marketing its
products and services, need for capital, competition from other companies
and other factors, any of which could have an adverse effect on the
business plans of PhotoMedex, its reputation in the industry or its
results. In light of significant uncertainties inherent in forward-looking
statements included herein, the inclusion of such statements should not be
regarded as a representation by PhotoMedex or its subsidiaries that the
forward-looking statements will be achieved.
Contacts: Allen & Caron PhotoMedex, Inc.
Matt Clawson (investors) Dennis McGrath, CFO
SOURCE PhotoMedex, Inc.