LAWRENCE, Mass., Aug. 1 NxStage Medical, Inc.(Nasdaq: NXTM), a leading manufacturer of innovative dialysis products,announced today that it has completed its previously announced $43 millionprivate placement financing of common stock and warrants. As a part of theprivate placement, which closed in two tranches, the Company issued 9,555,556shares of NxStage's common stock at a price of $4.50 per share, and warrantsto purchase 1,911,111 shares of its common stock at an exercise price of $5.50per share, which price may be adjusted to $3.00 or $6.50 depending uponwhether the Company achieves certain targets relating to the number of EndStage Renal Disease patients prescribed to receive therapy with the NxStageSystem One as of December 31, 2008. At the initial closing of the privateplacement on May 28, 2008, the Company issued 5,555,556 shares of common stockand 1,111,111 warrants to OrbiMed Advisors, LLC ("OrbiMed") and received grossproceeds of $25 million. The second closing of the transaction was subject tothe approval of NxStage stockholders, which was obtained at a Special Meetingof Stockholders held on July 31, 2008. At the second closing, the Companyissued 4,000,000 shares of common stock and 800,000 warrants and receivedgross proceeds of $18 million.
NxStage will use proceeds of the private placement financing to advancefurther the commercialization of its products and the development of newproducts for its product pipeline. The Company also intends to use theproceeds for general corporate purposes.
NxStage Medical, Inc. (Nasdaq: NXTM) is a medical device company,headquartered in Lawrence, Massachusetts, USA, that develops, manufactures andmarkets innovative products for the treatment of ESRD and acute kidneyfailure. For more information on NxStage and its products, please visit thecompany's website at www.nxstage.com.
This release contains "forward-looking statements" within the meaning ofthe Private Securities Litigation Reform Act of 1995. All statements containedin this release that are not clearly historical in nature are forward-looking,and the words "anticipate," "believe," "expect," "estimate," "plan," andsimilar expressions are generally intended to identify forward-lookingstatements. Examples of these forward-looking statements include statements asto the anticipated use of the private financing proceeds. All forward-lookingstatements involve risks, uncertainties and contingencies, many of which arebeyond NxStage's control, which may cause actual results, performance, orachievements to differ materially from anticipated results, performance orachievements, including certain factors that may affect future operatingresults and which are detailed in NxStage's filings with the Securities andExchange Commission, including the Quarterly Report on Form 10- Q for theperiod ended March 31, 2008.
In addition, the statements in this press release represent NxStage'sexpectations and beliefs as of the date of this press release. NxStageanticipates that subsequent events and developments may cause theseexpectations and beliefs to change. However, while NxStage may elect to updatethese forward-looking statements at some point in the future, it specificallydisclaims any obligation to do so, whether as a result of new information,future events, or otherwise. These forward-looking statements should not berelied upon as representing NxStage's expectations or beliefs as of any datesubsequent to the date of this press release.Contact: Kristen K. Sheppard, Esq. VP, Investor Relations [email protected]
SOURCE NxStage Medical, Inc.