InSightec to raise $15 million for tumor-treating device; LendingClub gets $12 million from PIPE

By Devika Patel

Knoxville, Tenn., March 19 - InSightec Ltd. said Thursday it has negotiated a $15 million sale of B preferred shares. The company intends to use the proceeds to expand its clinical research for a pain relieving device for cancer tumors that have metastasized to the bones.

Another private company, LendingClub Corp., also announced a large preferred financing. The company raised $12 million in a private placement of convertible preferred stock.

And West Perth, Australia's Eleckra Mines Ltd. arranged a A$1 million private placement of shares, an investment the company said will "add further value" to its portfolio.

InSightec plans $15 million

InSightec has closed a $15 million internal round of financing. It plans to sell B preferred shares, convertible into ordinary shares.

The company was founded in 1999 to develop the breakthrough Magnetic Resonance-guided Focused Ultrasound technology and transform it into the next generation operating room.

Proceeds will be used to expand research and development efforts for this device.

"We are very proud in the ongoing trust we are receiving from our investors that share our vision that this technology is the enabler of the next generation operating room that will be a non-invasive and outpatient operating room," InSightec's president and chief executive officer, Kobi Vortman, stated in a news release.

"InSightec is expanding its research into the oncology areas: bone metastases, prostate cancer, breast cancer, liver tumors and brain tumors. Recent publications have shown that Magnetic Resonance-guided Focused Ultrasound with the ExAblate system has the potential to be an effective noninvasive pain-relieving treatment for tumors that have spread to the bones," Vortman continued.

ExAblate uses the MR guided focused ultrasound technology that combines MRI ‑ to visualize the body anatomy, plan the treatment and monitor treatment outcome in real time ‑ and high intensity focused ultrasound to thermally ablate tumors inside the body non-invasively.

"InSightec is conducting a phase 3 pivotal trial for the treatment of pain palliation of bone metastases. In addition, a fertility enhancement study is being performed evaluating the potential of ExAblate fibroids' treatments to enhance fertility when other potential causes of women's infertility have been ruled out," Vortman said in a press release.

"The investment will allow acceleration of the technical and clinical research for oncology applications providing improved care for patients around the world," he stated.

The ExAblate system was approved by the Food and Drug Administration in 2004 as a treatment for symptomatic uterine fibroids. Over 4,500 women have been treated to date, the company said.

InSightec has headquarters near Haifa, Israel. The company's parent, Elbit Imaging Ltd., invested $7.5 million on March 18. Elbit and other existing investors will invest at least another $7.5 million over the next year.

LendingClub raises $12 million

Sunnyvale, Calif.-based LendingClub said it took in $12 million from a private placement of convertible preferred stock with investors Canaan Partners VII LLC and Norwest Venture Partners X, LP.

On March 13, it sold 16,036,346 preferreds, which are convertible into common shares on a one-for-one basis.

Privately owned LendingClub develops and markets networking solutions for the financial industry.

Eleckra attempts A$1 million

Mineral explorer Eleckra said it will raise A$1 million in a private placement of shares.

The company will sell 40 million ordinary shares at A$0.025 each, along with 20 million free attaching options in two tranches. The options are exercisable at A$0.07 until June 30, 2011.

"This capital raising and entitlement issue will allow Eleckra to add further value to its portfolio of gold and uranium resources," Eleckra chairman Ian Murray said in a press release. "With the bullish outlook for the gold price, we are well-positioned with our highly prospective tenements, key skills set and now with the funding to allow us to do further exploration and evaluation work."

Company shares (Australia: EKM) were unchanged, closing at A$0.03 on Thursday.

The first tranche of the deal is expected to settle immediately and the second upon shareholder approval, which will be sought in late April.

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