MEMPHIS, Tenn., Nov. 4, 2005 (PRIMEZONE) -- Luminetx Corporation, a leading developer and marketer of biomedical technologies, including its patented infrared vein imaging system, VeinViewer(tm), announced today more than $11M in funding has been secured in the company's Series A Preferred financing. Morgan Keegan served as placement agent in the capital-raising effort with Stanford Financial Group as the lead investor. Other investors in the round include Elm Ridge Capital, Capvest Venture Fund, Custer Capital Inc. and its associated funds and Diomed Holdings, Inc.
The funds will be used for Luminetx's production efforts on the VeinViewer in order to meet the demand for the technology from leading healthcare centers around the world. In addition, some proceeds are expected to support development efforts of other innovative technologies within the Luminetx portfolio. The company also plans to increase its size in office space and number of employees.
"Morgan Keegan far exceeded our original target in managing this financing effort," said Jim Phillips, chairman, chief executive officer and president of Luminetx. "This, along with the investment by Stanford Financial Group, is a real testament of the early success of a company that is addressing a huge market for its lead product in pediatrics, sclerotherapy, venipuncture, dermatology, anesthesiology, radiology and a number of other fields."
Luminetx began operations in early 2005 with an "angel" round of financing that raised over $4M. Since that time, the company has secured patents, begun production, signed distribution agreements and made significant impacts at medical trade shows across the country.
Hailed by Time magazine as "one of the most amazing medical inventions of the year," VeinViewer is a breakthrough device that will revolutionize medical procedures and improve the quality of global health-care. The visionary product is a venous imaging system that uses infrared light and other patented technologies to project a real-time image of subcutaneous veins directly onto the surface of a patient's skin.
VeinViewer has been attracting keen interest from leading national figures in phlebology, sclerotherapy, dermatology, phlebotomy, pediatric venipuncture (i.e., blood collection, IV-PICC line insertions), interventional radiology, plastic surgery and other specialty medical segments where venous access is critical to patient comfort and practitioner success. In August, Luminetx signed a $16M sales agreement providing Diomed Holdings distribution rights to sclerotherapy, phlebectomy and varicose vein treatment markets in the United States and United Kingdom.
Founded in 1969 in Memphis, Tenn., Morgan Keegan & Company is a premier regional investment firm offering full-service investment banking, securities brokerage, trust and asset management. Morgan Keegan serves the diverse financial needs of individual investors, corporate and institutional clients throughout the U.S. and abroad and has over 280 offices in 18 states, with $540 million in equity capital.
"Morgan Keegan is pleased to be part of the growing biomedical industry in Memphis, and the Luminetx story is a perfect example of how valuable an industry it is," said Kim Jenkins, Managing Director & Director of Private Equity at Morgan Keegan. "In its first year in business, Luminetx has secured patents, developed and productized its technology, and early next year, will begin manufacturing and distributing what promises to be one of the industry's most innovative medical devices. We at Morgan Keegan are proud to be involved in the impressive growth and development of Luminetx, a home-town company rapidly positioning itself to make a global impact."
Stanford Financial Group (SFG) is a global network of affiliated companies that together form a powerful resource of financial services. Headquartered in Houston, SFG provides international private banking, investment banking, trust and brokerage services, investment advisory services, real estate development and insurance, serving private investors, companies, governments and institutions worldwide. The Stanford group of companies has more than 40,000 clients in 80 countries.
"Luminetx immediately caught our attention as an emerging leader in the biomedical field," said John Santi, Memphis' Managing Director for Stanford Group Company part of the Stanford Financial Group. "At Stanford, we look to partner with organizations that truly impact the way we live our lives. The VeinViewer is an amazing tool for clinicians and offers much sought after peace of mind for patients. We are proud to help Luminetx bring this biomedical wonder to the world."
Custer Capital, Inc. is a venture capital firm financing early stage to post IPO growth companies in technology, telecommunications and healthcare. The firm, based in Columbus with a satellite office in Toronto, offers strategic counsel in a number of business areas, including business plans, venture capital, marketing, product planning, organization development, finance and human resources.
"We are very excited about the prospect of working with Jim Phillips and a company that he's running," said William H. Custer of Custer Capital, Inc. "We see in Luminetx and VeinViewer huge market opportunities and good potential for growth."
About Luminetx Corporation
Headquartered in the biotech district of Memphis, Tenn., Luminetx Corporation discovers, develops and commercializes bioscience technologies in the digital imaging, SCM, nanotech, wireless, biometric identification and IP communications arenas. Luminetx consists of experienced scientific, technological and business leadership committed to their vision. President, CEO and Chairman of the Board James M. Phillips has enjoyed an outstanding career starting and guiding companies through successful IPOs and pioneering new technologies into major industry leading positions. Luminetx's premier product, VeinViewer, an infrared vein imaging system, was recognized by Time magazine as "one of the most amazing medical inventions of the year." For more information, please visit www.luminetx.com.
About Morgan Keegan
As a subsidiary of Regions Financial Corporation, Morgan Keegan is partnered with one of the nation's Top 15 financial services providers with $85 billion in assets. Banking services are provided through some 1300 Regions Bank locations across a 16-state geographic footprint in the South, Midwest and Texas; Morgan Keegan Financial Advisors provide comprehensive financial services in many of these locations. Regions Financial, the parent company of Regions Bank and Morgan Keegan, is listed on the New York Stock Exchange (symbol: RF) and ranks on both the Forbes 500 and Fortune 500 listings of America's largest companies. Additional information is available at www.morgankeegan.com.
About Stanford Financial Group
Houston-based Stanford Financial Group is a global network of affiliated financial companies headed by Chairman and CEO R. Allen Stanford. Although independent, the affiliated companies together provide coordinated wealth management through international private banking, asset management, investment advisory services, trust administration, commercial banking, real estate development and insurance for clients worldwide. For more information, visit www.stanfordfinancial.com.
About Elm Ridge Capital Management
Elm Ridge Capital Management, LLC is a 1.5 billion dollar hedge fund founded by Ron Gutfliesh in 2000 and is based in Irvington, NY. Elm Ridge uses a value based, fundamental approach to invest primarily in domestic equities. Elm Ridge has given their investors an annualized net return of 22.7% since inception.
About Diomed Holdings, Inc.
Diomed develops and commercializes minimally invasive medical procedures that use its proprietary laser technologies and disposable products. Diomed focuses on EndoVenous Laser Treatment (EVLT) for use in varicose vein treatments, photodynamic therapy (PDT) for use in cancer treatments, and dental and general surgical applications. The EVLT procedure and the company's related products were cleared by the United States FDA in January 2002. Along with lasers and single-use procedure kits for EVLT, the company provides its customers with state of the art physician training and practice development support. Additional information is available on the company's website, www.evlt.com. EVLT is a registered trademark of Diomed, Inc., Andover, MA.