VirtualScopics completes private placement of nearly $4.5 million

Twitter icon
Facebook icon
LinkedIn icon
e-mail icon
Google icon

VirtualScopics of Rochester, N.Y., has completed a private placement of $4.35 million of series B convertible preferred stock and warrants with a group of institutional and accredited investors, and the medical device developer intends to use the net proceeds to expand its sales and marketing efforts and its software and technology enhancements.

The series B preferred stock will initially be convertible into 3,612,057 shares of the company's common stock at an initial conversion price of $1.2043 per share, based on the volume weighted average of recent market prices.  The series B preferred stock carries a dividend of 8 percent, payable monthly in either cash or in shares of its common stock. 

VirtualScopics also issued warrants for the investors to purchase an aggregate of 2,167,234 common stock shares.

BridgePointe Master Fund, managed by Roswell Capital Partners, acted as the lead investor, BayStar Capital III Investment Fund also participated and the sole placement agent on the transaction was Canaccord Adams.