Med-Design Corp. has successfully completed a private placement of 1 million shares of the company’s common stock to help finance its pilot manufacturing facility in Ventura.
Net proceeds to Med-Design are approximately $4.67 million, officials with the Philadelphia-based company said.
Besides financing the manufacturing facility, the additional equity capital will enable Med-Design to proceed with the final development of its safety needle product line.
“We are pleased that we have obtained additional financing without significant dilution,” said James Donegan, Med-Design chairman and CEO. “These funds significantly strengthen our financial base and also put us in a better position in terms of corporate strategy.”
Med-Design holds various U.S. and international patents on safety devices designed to reduce the incidence of accidental needle sticks. The Ventura facility, which has focused on research and development, is expanding to include manufacturing.