Fischer Imaging completes $4 M stock sale

Fischer Imaging announced that it has completed a private placement of one million shares of its common stock to entities controlled by Deerfield Management. The shares were sold at $4 each—a 56% premium on the company’s closing stock price of $2.56—on Friday, Aug. 25.

“Having been stockholders of Fischer Imaging for a number of years, we are encouraged that operationally the company has turned the corner and is ready to reap the benefits of its investment in digital mammography and other new technologies,” said Arnold Snider, general partner of Deerfield.

Fischer Imaging’s revenue was down (SCAN 5/24/00) as it prepared an FDA submission for its SenoScan full-field digital mammography system.

“This investment provides Fischer with additional financial flexibility as we prepare to launch our SenoScan full-field digital mammography system later this year,” said Morgan W. Nields, chairman and CEO of Fischer.

“The company’s balance sheet has improved significantly over the last 12 months as Fischer completed its exit from the OEM business,” said Rod Johnson, Fischer’s chief financial officer.

Revenue decreased 3% to $13.7 million for the first quarter of 2000 (end April 2) compared to $14.2 million for the first quarter of 1999. These figures do not include the sale of a $6.2-million technology license to GE Medical.

The deal with GE involves a Fischer design for a C-arm attachment for cardiology equipment. The license agreement says GE can manufacture the C-arm itself or outsource it to another company.