Investor Gives Endocare Product Launch a Boost

Irvine-based Endocare Inc. said Tuesday it received $5 million from an undisclosed institutional investor to help finance the launch of its Cryocare technology for prostate cancer.

Endocare, which makes surgical devices and technologies, said the the investor has the option to invest an additional $5 million in convertible debentures and may be required to exercise the option under certain circumstances.

The initial financing consists of a $5-million private placement of 7% nonvoting convertible debentures due in June 2002.

The debentures are convertible at any time into a fixed number of Endocare common shares at $5.125 a share. The additional $5 million in nonvoting debentures would be convertible into Endocare common stock at $6.75 a share. The stock was unchanged Tuesday at $4.75 a share on the Nasdaq Small-Cap market.

The investment helps Endocare launch Cryocare in conjunction with a Medicare policy reimbursing cryosurgical treatments for prostate cancer. The policy takes effect July 1.