The company will use the proceeds from the financing for continued development of ClearPath, the company’s breast brachytherapy device, as well as working capital. Three Arch Partners led the private placement and has invested $10 million. CHL Medical Partners invested $3 million and SF Capital Partners invested $2.5 million. Oppenheimer & Co. acted as the sole placement agent for the transaction.
The investors have been issued 63,008,140 shares of the company’s common stock at $0.246 per share as well as warrants to purchase 3,150,407 shares of common stock at an exercise price of $0.246 per share. The warrants are exercisable beginning 180 days after the date of closing until 7 years after the date of closing.
John Rush, president and CEO of North American Scientific, said: “We look forward to the success of our ClearPath product and continued sales growth in 2008.”