Full Press Release Details
Announces 1st Round of Institutional Financing Led by MicroCapital LLC; Raising
Wash.--(BUSINESS WIRE)--Aug. 18, 2006--IsoRay, Inc. ("IsoRay") (OTCBB:ISRY),
medical technology company focusing on innovative treatments of solid cancer
tumors through use of its proprietary Cesium-131(TM) brachytherapy seeds, has
received its first major institutional funding led by MicroCapital LLC on August
transition, IsoRay issues 2,063,200 shares of its common stock at $2.50 per
share and also issued warrants to purchase 2,232,700 shares of its common stock
(including warrants issued to brokers) at an exercise price of $3.00 per share.
The warrants have a call feature which IsoRay can trigger once the stock trades
above $4.50 a share for a specified time period. If all warrants are exercised,
IsoRay will receive an additional $6,698,100.
financing of IsoRay represents a rare opportunity to invest in a company that
has an approved and differentiated therapeutic product that we believe has
good chance of successful adoption. In addition to the value associated with
reducing the side-effects of brachytherapy in the treatment of prostate cancer,
the company's isotope may have the characteristics that would allow it to be
used in circumstances where there appears to be few, if any alternative
treatment," said Ian Ellis of MicroCapital LLC.
believe that the quality of the industry-experienced team that the company
successfully attracted is an indication of the possibility of success in this
said that the transaction has been structured so that if the call feature is
used to trigger exercise of the warrants, the additional funds should be
sufficient to get the business to the point where it may be self-funding.
Girard, Chairman and CEO of IsoRay stated, "Brachytherapy has proven to be
effective, but the introduction of Cesium-131 takes this treatment option to
new level. Lead investor MicroCapital LLC, along with the other institutional
investors, recognized both short-term and long-term market potential of this
cancer treatment option."
connection with the financing, IsoRay has agreed to file a registration
statement within sixty days of the closing covering the shares and the shares
underlying the warrants.
nearly six years ago, MicroCapital LLC is an SEC-registered investment adviser,
with offices in New York, San Francisco and the United Kingdom. MicroCapital
manages approximately $100 million in a long/short equity portfolio and seeks
invest in high quality growth companies in the North American microcap market
that demonstrate a clear and innovative customer value proposition, sustainable
competitive advantage and superior execution capability.
Inc., through its subsidiary, IsoRay Medical, Inc., is the sole producer of
Cesium-131 brachytherapy seed, used to treat prostate and other cancers. The
Cesium-131 seed offers a significantly shorter half-life than the two other
isotopes commonly used for brachytherapy, which results in a substantially
faster delivery of therapeutic radiation, lower probability of cancer cell
survival and reduction of the longevity of common brachytherapy side effects.
IsoRay is based in Richland, Washington. More information is available about
IsoRay at www.isoray.com.
press release includes statements that may constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
forward-looking statements are subject to a variety of known and unknown risks,
uncertainties, and other factors that are difficult to predict and many of
are beyond management's control. Factors that can affect future results are
discussed in the documents filed by IsoRay from time to time with the Securities
and Exchange Commission. IsoRay undertakes no obligation to update or revise
forward-looking statement to reflect new information or events.