BTI gets financing, reduces net loss

Magnetic source imaging developer Biomagnetic Technologies got some good news last month with word that it had secured a $1.5 million loan commitment from shareholder Dassesta International. BTI had been soliciting additional equity capital to stave off a cash shortage (SCAN 1/21/98).

Further financing will be necessary, however. BTI is in the process of seeking additional equity capital from foreign investors to supplement the Dassesta loan, of which $895,000 has already been borrowed. Upon receipt of a minimum of $7 million of additional financing, BTI is obligated to repay the $1.5 million loan to Dassesta. Without additional financing in the near future, BTI will have difficulties operating as a going concern, according to the company.

In financial news, BTI reported fiscal second-quarter revenues of $1.7 million, up 11.6% compared with the $1.6 million reported in the same period last year. The firm’s net loss dropped to $597,000 for the period (end-March), compared with a net loss of $1.2 million in 1997.

BTI has also received an order for a Magnes 2500 Whole Head system from Tokyo Medical and Dental University in Japan, as well as acceptance of a system by the Institute pour la Recherche en Neurosciences et en Psychiatrie in Rouffach, France. The French site is employing the system for research on psychiatric patients, according to the company.