ViewRay is raising nearly $60 million through an agreement to sell nearly 9 percent of its stock and warrants to a Chinese-based conglomerate and investment company.
The investment will raise Fosun International’s ownership stake in ViewRay to 18.4 percent, up from the current 9.9 percent. Cleveland-based ViewRay offers a clinical MRI-guided radiation therapy system.
The company says its MRIdian radiation therapy system is built on a proprietary high-definition MR imaging system designed to address the challenges and clinical workflow for advanced radiation oncology. Unlike MR systems used in diagnostic radiology, MRIdian's high-definition MR was designed to deliver highly precise radiation that limits skin toxicity and other safety concerns.
ViewRay expects to complete the deal with Fosun by March 2. Under the terms, ViewRay will sell its common stock and warrants to an affiliate of Fosun International Limited in a direct registered offering for gross proceeds of about $59.1 million.
ViewRay agreed to sell approximately 7.1 million shares of common stock and warrants to purchase about 1.4 million shares of common stock with a per share exercise price of $8.31 per share. The warrants will expire seven years from the date of issuance.
ViewRay executives say proceeds from the offering will be used primarily to support the ongoing commercialization of the MRIdian Linear Accelerator Technology, for research and development related to continued product development activities, and for general corporate purposes, including working capital.
"We are excited to complete this financing, which will enable us to scale up production and to continue investing in sales and marketing to meet the growing demand for the MRIdian Linac," said Chris A. Raanes, president and chief executive officer of ViewRay.
Register or login for access to this item and much more
All Health Data Management content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access